General Motors is planning to lay off 1,200 workers temporarily in Canada as a result of the strike

category:Finance
 General Motors is planning to lay off 1,200 workers temporarily in Canada as a result of the strike


CNBC reported that GM Canada did not disclose how long the temporary layoffs would last, but attributed the cuts to a strike by the United States Federation of Automobile Workers (UAW), saying that Canadian factories had to halve the production of GM pickups because the currently closed U.S. factories were unable to supply spare parts properly.

The Oshawa plant in Ontario, Canada, mainly produces Chevrolet Silverado, Sierra pickups and Chevrolet Impala and Cadillac XTS cars. GM confirmed that the full-size pickups manufactured by the factory were affected by the strike, but GM said that other Canadian businesses, including the CAMI assembly plant and the St. Catherine power plant, are still unaffected at this time, and we will continue to monitor this situation.

But according to the media Global News, Jerry Dias, president of the Canadian trade union, said that it was expected that the second production line of the Osawa plant would also be shut down because of the strike, resulting in the total unemployment of 2,600 workers.

Dias predicts that two-thirds of GMs CAMI plant in Ingersoll, Ontario, will be shut down early next week because of a strike, while the plant in St. Catherine, Ontario, may be hit by a strike in the middle of next week. Workers in these factories will also be compensated when the factories close, but the compensation may not be as good as Osawa.

The origin of the incident goes back to Monday.

CNBC reported that about 48,000 GM workers had gone on strike. Because the Union and General Motors failed to reach an agreement within the deadline, the leaders of the National Federation of Automobile Workers first called on workers to fight against General Motors nationwide since 2007.

Negotiations between GM and the unions resumed in the morning of September 16 and are taking place every day, but no agreement has yet been reached. According to officials, the negotiations have been making progress.

Wall Street analysts estimate that the strike will cost GM as much as $100 million a day. General Motors is by no means the only company affected by the strike. CNN reports that hundreds of thousands of people may be unemployed as a result of the strike.

CNN reports that the impact of the strike could affect many companies working for General Motors. These companies are located all over the United States, mostly in the Midwest. At present, many companies have stopped or will stop producing the products they sell to GM. A GM spokesman said the layoffs were isolated and would not affect other businesses. Analysts at Citigroup said in a study released to investors this week that GM suppliers had not yet been affected by the strike, but that could change, especially as the longer the delay, the more likely it would have a negative impact. According to people familiar with the negotiations, the deadlock in the negotiations mainly comes from salaries, GMs use of temporary workers, possible closures of factories and medical security issues. Source: Wang Xiaowu_NF, Responsible Editor of Peng Mei News

CNN reports that the impact of the strike could affect many companies working for General Motors. These companies are located all over the United States, mostly in the Midwest. At present, many companies have stopped or will stop producing the products they sell to GM.

According to people familiar with the negotiations, the deadlock in the negotiations mainly comes from salaries, GMs use of temporary workers, possible closures of factories and medical security issues.