sef, CNBC Indonesia
Tuesday, 03/10/2023 08:05 WIB
Photo: Car Factory (AFP/NHAC NGUYEN/File Photo)
Jakarta, CNBC Indonesia – The automotive workers’ demonstration in the United States (US) has not yet ended. The strike carried out by the United Auto Workers (UAW) automotive union is now in its 18th day.
As a result, a number of related companies, such as General Motors and Ford Motor, announced layoffs for hundreds of employees. A total of 500 workers will be laid off, spanning the company’s four Midwestern plants.
“Monday (2/10/2023), Ford said it was laying off a total of 330 workers at the Chicago Stamping and Lima, Ohio Engine factories,” wrote Reuters.
“Meanwhile GM announced layoffs of 130 workers at Parma, Ohio Metal Center and 34 at Marion, Indiana Metal Center.”
This is not the first layoff. Last week, GM and another automotive company, Stellantis, also laid off 2,300 workers for the same reason.
Please note that demonstrations have been taking place since September. Workers submitted a new contract offer demanding an hourly wage increase of around 40%.
Not only that, they also asked for a reduction in the 32-hour work week, a shift back to traditional pension funds, as well as the elimination of compensation levels and the restoration of cost-of-living adjustments (COLAs). They also asked for several other things including increasing pension benefits and increasing vacation and family leave benefits.
In fact, the White House came down in bunches in response to this. However, even though US President Joe Biden intervened, the mediation did not produce results.
“If implemented, the proposal would double Ford’s current UAW-related labor costs, which are already far higher than the labor costs of Tesla, Toyota and other foreign-owned automakers in the US that use labor that is not represented by a union.” Ford said at the time commenting on the UAW’s request.
Published on the same page, in JPMorgan’s notes on Monday, the demonstration by US auto workers had cost GM US$191 million and Ford US$145 million. Anderson Economic Group also estimated total losses from the first two weeks of the strike at US$3.9 billion, including wages, suppliers and customers.
Watch the video below:
Exploring the Best-Selling City Car that is Increasingly Practical
(sef/sef)
2023-10-03 01:05:00
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