General Motors Lays Off 1,200 Workers

The General Motors headquarters in Detroit has not yet reached a deal with United Auto Workers. (Wikimedia Commons)

The General Motors headquarters in Detroit has not yet reached a deal with United Auto Workers. (Wikimedia Commons)

General Motors (GM) laid off 1,200 employees due to an ongoing United Auto Workers (UAW) strike on September 23, CNBC reports. The UAW strike, now entering its second week, forced the GM plant to halt production and cut workers. 46,000 workers are picketing across America, and negotiations have ground to a halt. 

The current strike is the longest since 1970. GM and the UAW are negotiating the next four-year labor contract for workers. Despite eight days of negotiations, the UAW has not reached an agreement with GM. The last contract expired on September 15, and they scrambled to reach a deal in the weeks leading up to the deadline. According to the Detroit News, GM stock dropped five percent since the September 15 deadline. GM signaled last week that continued strikes would force layoffs.

The effects are rippling through the industry. GM stopped production of the GMC Sierra and Chevrolet Silverado at a plant in Moraine, Ohio, CBS reports. The layoff affected 500 people at the plant. The workers are not union members, so they do not get strike pay. However, they still suffer financially from the layoffs. Magna International Inc. and Nexteer Automotive, GM suppliers, also had to lay off employees during the strike, reports the Detroit News

Tensions remain high as both sides bunker down. Union members are distributing strike pay and employers are issuing layoffs. Lamont Young, chaplain at UAW Local 22, told the Detroit News, “We know how important this is. You haven’t seen a real strike in a long time, and now you know what this is about.” 

More confrontations are happening at strikes. According to the Tennessean, police arrested nine workers at a plant in Springhill, Tennessee on September 18 for blocking an entrance. GM accused picketers of leaving nails on the road and harassing motorists. A judge issued a court order for picketers to stop blocking the entrance on September 23.

“UAW members are peacefully exercising their right to picket in support of the Union’s strike for better wages, quality affordable health care, and job security,” UAW representative Brian Rothenburg said in a statement, “we are committed to conducting all strike-related activities safely and lawfully.” 

The UAW wants better benefits for members, but the working conditions of temporary workers remain one of the biggest issues on the table as the automotive industry requires grueling physical labor. Temp workers, who are union members, want better wages and paths to permanent employment.

The UAW is defending temporary workers as a part of their national strategy. Unions have been declining for decades and aim to increase membership in new areas. Defending temp workers could extend the UAW’s influence to booming auto-industry centers like the South, where working in temporary positions is common.

The auto industry will not give in easily. According to the Detroit Free Press, companies have used temporary workers heavily since the 2008 Recession. In labor negotiations during the financial crash, the UAW conceded to letting companies use temporary workers because it allowed companies to cut costs and stay afloat. Now, temporary workers comprise a much larger portion of workers. 

The strike’s outcome will have profound consequences for labor unions and the future of American industry. Although GM dealerships reported to have enough inventory for the following 77 days at the end of August, some dealers had to recently turn away their customers as they lacked spare body parts, reports the Detroit News

The strike also has ripple effects on local businesses, but the workers are ready for the long haul. According to the UAW’s Young, “Right now, we can’t do anything but keep the faith and hope everything is going well.” Yet, as the strike persists without a ratified deal, people who are not on strike but have been temporarily laid off are considering taking new jobs, not because they want to but they have to, in order to support their families, per CBS.