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Ford and GM Temporarily Lay Off 500 Workers Amid UAW Strikes

3 October 2023
2 min.
Ford and GM Temporarily Lay Off 500 Workers Amid UAW Strikes

UAW Strikes Shake the Auto Industry

The automotive industry is facing significant workforce reductions as United Auto Workers (UAW) strikes persist.

Ford's Layoffs

On Monday, Ford announced layoffs affecting approximately 330 employees at two key facilities: the Chicago stamping plant and the Lima engine plant in Ohio.

Ford attributes these layoffs to the UAW's targeted strike strategy, which is causing ripple effects beyond the facilities directly involved in work stoppages.

UAW Strikes' Impact

On Friday, the UAW called for an additional 7,000 autoworkers to join the strikes, targeting Ford's Chicago Assembly Plant and GM's Lansing-Delta Township facility in Michigan.

This recent call has brought the total number of striking workers across the Big Three automakers to 25,000.

Ford's Cumulative Layoffs

The Chicago stamping plant employs approximately 1,290 workers, while the Lima engine plant employs about 1,530.

The recent wave of layoffs, coupled with the 600 layoffs at Ford's Wayne, Michigan Assembly Plant on September 15th, has led to a cumulative total of 930 employees affected by strike-related layoffs at Ford.

General Motors' Layoffs

General Motors also reported layoffs on Monday, affecting 130 workers at its Parma, Ohio, metal center and its Marion, Ind., metal center.

The Ohio facility employs 960 people, and the Indiana metal center has 717 individuals on its workforce.

It's worth noting that GM temporarily laid off 2,000 workers at its Fairfax Assembly Plant in Kansas City, Kansas, last month due to parts shortages stemming from the strikes.

Impact on Other Automakers

Stellantis recently laid off 68 employees at its Toledo Machining Plant in Perrysburg, Ohio, and is considering further furloughs affecting more than 350 employees due to the ongoing UAW strikes.

UAW and Mack Trucks, part of Volvo Group, reached a labor agreement, avoiding a strike that could have impacted 4,000 autoworkers in three states.

Economic Impact

Suppliers have suffered the largest financial setbacks, with a combined loss of $1.29 billion. Dealer and customer losses amount to $1.2 billion. In total, the Detroit Three automakers have disclosed losses totaling $1.12 billion. Autoworkers have experienced a direct wage loss of $325 million.

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