(Reuters) – The extended strike at Common Motors Co (GM.N) is estimated to have hit as many as 150,000 employees within the auto business, a report from analysis and consulting agency Anderson Financial Group (AEG) confirmed on Tuesday.
FILE PHOTO: Common Motors meeting employees picket exterior the Common Motors Bowling Inexperienced plant through the United Auto Staff (UAW) nationwide strike in Bowling Inexperienced, Kentucky, U.S., September 17, 2019. REUTERS/Bryan Woolston/File Picture
The strike on the No. 1 U.S. carmaker started on Sept. 16, with its 48,000 members of the United Auto Staff (UAW) union searching for increased pay, larger job safety, a much bigger share of the automaker’s revenue and safety of healthcare advantages.
A key concern separating the 2 sides is job safety, the UAW’s high negotiator wrote in a letter launched on Tuesday.
The union desires GM to decide to constructing automobiles offered in america at UAW-represented factories, UAW Vice President Terry Dittes wrote in a letter to union members.
“We’ve got made it clear that there isn’t a job safety for us when GM merchandise are made in different international locations for the aim of promoting them right here in the united statesA.,” Dittes mentioned.
“We consider that the automobiles GM sells right here needs to be constructed right here.”
About 75,000 staff of auto components suppliers have both been briefly laid off or have seen their wages shrink because of the stoop in demand from GM, in accordance with the AEG report.
The entire variety of employees hit by the strike consists of about 25,000 GM salaried employees affected by the plant shutdowns, it mentioned.
About 5,000 employees at Michigan auto suppliers have filed for unemployment advantages on account of the strike, the state’s Unemployment Insurance coverage Company mentioned on Tuesday.
AEG estimates that the strike has resulted in a $660 million revenue hit for GM and greater than $412 million in direct wage losses for all staff by the third week of the strike.
GM’s share worth dropped by 2.5% on Tuesday as broader indexes fell. Its share worth has misplaced 9% because the strike started, slicing greater than $four billion from the automaker’s market worth.
The stoppage has additionally led to $155 million in misplaced federal revenue and payroll tax income and $9.1 million in misplaced Michigan revenue tax income.
Talks for a brand new four-year labor contract took a “flip for the more serious” on Sunday after the UAW rejected GM’s newest supply however the two sides have been nonetheless speaking.
Reporting by Dominic Roshan Okay.L. in Bengaluru; Enhancing by Anil D’Silva and Tom Brown