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The strike of 50, 000 employees of General Motors in the United States continues, and GM cuts another 1200 non-union employees.

2024-05-16 Update From: AutoBeta autobeta NAV: AutoBeta > Industry Report >

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Affected by the strike, GM plans to temporarily lay off 1200 workers at its final assembly plant in Oshava, Ontario, and cut production by half. GM temporarily laid off more than 1200 other non-union workers in the United States and Canada, including about 1200 hourly workers in Ohio and Canada, as the United Auto Workers (UAW) strike entered its second week, according to the latest news.

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Since the strike began on the 16th, more than 3700 non-union workers have temporarily lost their jobs, a figure that only counts GM's affected employees. As production lines are shut down, all GM suppliers will also be affected, so the total number of workers affected is likely to be larger than this figure.

GM and unions failed to reach an agreement by the Sept. 14 deadline, leading to a strike by about 48000 union members across the United States. It was GM's first national strike since 2007 and the largest in the United States in 12 years.

The strike was caused by the lack of contracts between unions and companies, and the fact that GM closed two parts factories and two car plants without warning this year, which angered the unions.

The vice president of the union said the strike was the union's last resort, but it was necessary because the two sides disagreed on a new four-year contract, demanding higher pay, stronger job security and higher benefits.

GM responded by offering substantial offers, including higher wages and factory investment: an additional $7 billion in factory investment, directly adding 5400 new jobs, a higher profit share, leading health benefits in the country, and a contract change compensation of $8000 per person.

Some analysts believe that if the strike leads to the suspension of production in North America, GM will face a daily loss of 400 million US dollars, while GM's factories in Canada and Mexico will also be affected, which will have a significant impact on the economy.

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