GM Idles Mexico Plant and Lays off 6000 Workers as Strike Continues

Strikers at the Detroit Hamtramck plant

Strikers at the Detroit Hamtramck plant

At this point, GM won't be able to recoup all of their losses from the lost output in the fourth quarter of the year even if the strike ends soon.

The strike had previously forced GM to lay off at least 2,000 Canadian workers and temporarily close an engine plant in Mexico.

GM released a statement Tuesday, saying only, "We continue to negotiate and exchange proposals, and remain committed to reaching an agreement that builds a stronger future for our employees and our company".

As the strike by the United Auto Workers hit week three, nonunion workers in the industry say they are being put in a tough position.

The proposal came at 9:45 p.m. Monday, but "did not satisfy your contract demands or needs", Terry Dittes, UAW vice president, wrote in a letter to local union leaders Tuesday.

"There were many areas that came up short like health care, wages, temporary employees, skilled trades and job security to name a few", wrote Dittes, director of the union's GM department.

But another person briefed on the talks said much of what the union objected to, including proposed concessions, has been removed or is being bargained.

"GM continues to lose on a daily basis as the strike wears on", he said in a note to clients.

The Silao workers are expected to return to their jobs after the strike, the spokesman said. So revenue has been counted already for almost all vehicles that are in dealer hands. GM has said it will provide loaner cars for people who can't get recall or warranty service due to lack of parts, and it's working to ship more parts or send them directly from parts factories.

It's day 17 of the GM strike but it's not just union workers feeling the impact. There also were dozens of Silverados and Equinox small SUVs - GM's top sellers.

Also, workers are seeking greater health benefits and that the entity limit the use of temporary employees and cancel its plans to close the respective Lordstown and Hamtrack plants in 2020 in OH and MI.

GM's Mexican arm notified workers at the Silao assembly plant that they had been placed on indefinite, mandatory vacation and would receive 55 percent of their pay, according to an internal document obtained by AFP.

The strike has shut down many of GM's 22 US parts warehouses, but some remain open, staffed by management.

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