A new analysis estimates that up to 100,000 workers – more than about 46,000 UAW strikers – were laid off, threatened with pay cuts or otherwise injured by the prolonged strike against General Motors.
East Lansing-based Anderson Economic Group estimated Tuesday that 25,000 paid GV workers were affected. In addition, another 75,000 employees were temporarily dismissed from car parts suppliers or their wages lowered because GM assembly plants did not use their parts or services.
"What started as a focused event The impact on a select group of workers has meanwhile increased," said Brian Peterson, Director of Public Order and Economic Analysis at AEG. [Stay up to date on the GM-UAW strike: Subscribe to our free autos newsletter.]
UAW members strike along Van Slyke Road in Flint against General Motors on Thursday, October 3, 2019, in front of the gate for the operation of flint engines. [Photo: Ryan Garza, Detroit Free Press]
In a telephone interview, Peterson said an analysis of GM's financial statements revealed that GM's 25,000 employees have jobs associated with the work of striking UAW members. Some of these employees may go on holiday or are contract workers who are told not to appear during the strike.
Lost Profit Sharing
Others may still be working, but their profit-sharing checks or bonuses reduce this year due to strike-related losses.
"Another major problem for automotive parts suppliers is that many (their workers) work hourly," added Peterson. "If you work for a parts supplier where 25% of your business is involved in parts manufacturing for GM vehicles, there will obviously be either layoffs or shorter working hours for people making parts for GM. "
The losses have become widespread and affected suppliers of GM as well as everything from car dealerships to restaurants catering to UAW members.
An estimated 10,000 assembly workers in Canada and Mexico were temporarily released due to strike-related shortage of parts.
I think if you're a supplier of car parts, you might be able to bargain for a few weeks from doing business with GM because you're doing business with Ford, Toyota, or Honda, "Peterson said," but to one When 25% of your business is GM, it's difficult to stay longer than a few weeks without any major impact. "
About 46,000 UAW members quit when the strike began against GM On September 16. And while the impact of the strike has gradually increased, the number of 100,000 non-UAW members injured by the strike remains astonishing.
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During the first three weeks of the UAW's strike, the AEG estimated that strike-related losses totaled $ 660 million in lost profits for GM, direct wage losses to all employees of more than $ 412 million, $ 155 million Lost federal income and tax revenue for payroll included $ 9.1 million of lost income tax revenue in Michigan.
Other estimates have estimated GM's losses at $ 1 billion last week. While the automaker does not pay for its hourly labor, it loses production, the profit of which is normally recognized when new vehicles are delivered to dealers.
Meanwhile, the UAW told its local union leaders that this is the case Tuesday that there is no agreement in sight for 850 caretakers from Aramark who have been on strike in Michigan and Ohio for 24 days.
"We continue to meet with the company and we still disagree on key issues such as wages and healthcare," wrote Terry Dittes, vice president and director of the UAW's General Motors department.
In an electronically dispatched letter said He: "We thank you for your sacrifices and your faithfulness in this difficult time. We will continue to work hard for you to reach a preliminary agreement that is good for you and your families!
Oshesha Lewis, 41, from Montrose, was on strike at Flint Assembly Plant this weekend. He said everyone was ready to return to work as soon as possible, but he was sure that GM workers would not cross the picket line if they had an agreement, and the janitors did not.
"Some of them cried when they had to cross last time. They apologized, "Lewis said Tuesday. "We are all one, all as a union."
The UAW auto workers had to cross the Flint border before the national strike began on September 16 at 00:01.
Aramark employees, represented by the One day before, the UAW went on strike. You are working since March 2018 on a contract extension. Members state that they have not had a salary increase for years.
GM has outsourced many of his janitorial and other operational work to Aramark. Aramark manages service contracts at five GM sites: Flint Assembly, Flint Engine Operations, Flint Metal Center; the Metal Center Parma, Ohio, and the Warren Technical Center. In addition to the janitorial work, the employees do some important work to keep the factories operational.
Timothy Hartwell, 44, from Flint went to the pickets because the workers had "no increase" for a very long time.
How long? "Well, I started in 2008 …" she said. "It's surreal, I can not believe we're out here, it's a shock for me, it has not started yet, like the first two weeks, I thought," Wow, we're going on strike. "I have to look after children But you have to fight, you have to make it work, I know there's a light at the end of this tunnel. "
Contact John Gallagher: 313-222-5173 or at [email protected] . Follow him on Twitter @jgallagherfreep Contact Phoebe Wall Howard: [email protected] Read more about Company and sign up for our corporate newsletter.
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