GM and Ford Announce Additional Worker Furloughs Amid Ongoing UAW Strike

As the United Auto Workers (UAW) strike against General Motors (GM) and Ford (F) enters its 19th day, both automakers have announced further furloughs for workers at plants that have not been directly affected by the ongoing strike action.

Ford is set to lay off 330 workers at its Chicago Stamping and Lima, Ohio plants, while GM will be laying off 120 employees at its Parma, Ohio metal center and 34 workers in Marion, Indiana. These additional layoffs come on top of the thousands already announced, highlighting the impact of the strike on the industry.

Despite the strike’s duration, a resolution between the workers and management does not appear to be imminent. On Monday, the UAW submitted an offer to GM, but the company did not agree to it, prolonging the negotiations. In the meantime, the union has initiated new talks with Stellantis, the parent company of Chrysler.

In a positive turn of events, the UAW recently reached an agreement with Volvo Group’s Mack Trucks, avoiding another potential strike. However, disruptions in supply chains have led to layoffs at factories not directly affected by the strikes for GM, Ford, and Stellantis.

The UAW expanded the strikes on Friday to include additional Ford and GM plants, further impacting production and operations. Despite these challenges, all three automakers’ stocks traded slightly higher in the premarket on Tuesday, indicating some optimism in the market.

For more information, contact Brian Swint at brian.swint@barrons.com.