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The strike is entering its 19th day.
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General Motors and Ford Motor, two of the three automakers affected by the United Auto Worker strikes, announced additional furloughs for workers at plants not directly affected by the action.
It’s another sign that the 2023 UAW strike is unique and not ending anytime soon.
Ford (ticker: F) is laying off 330 workers at its Chicago Stamping and Lima, Ohio plants. GM had 120 layoffs at its metals center in Parma, Ohio, and 34 in Marion, Indiana. The latest round of roughly 500 layoffs comes on top of thousands of workers already on strike.
“These are not lockouts,” Ford said in an emailed statement. “These layoffs are a result of the strike at the Chicago Assembly Plant as these two plants must reduce production of parts that would normally be delivered to the Chicago Assembly Plant.”
The automobile production system is networked. A strike at one plant ultimately affects another plant.
The total number of employees furloughed by Ford is nearly 1,000. About 8,000 Ford workers go on strike. Laid-off workers are expected to be entitled to the equivalent of $500 per week Strike pay from the union.
The strike is entering its 19th day and an agreement between workers and management does not appear to be imminent. On Monday, the UAW said it had made an offer to GM, but the company had not agreed to it. The union opened a new round of talks with Chrysler parent company Stellantis (STLA).
About 25,000 workers are on strike, less than 20% of all UAW workers working at the Detroit Three automakers. Limiting the number of striking workers will limit the impact on the UAW’s strike fund. It also limits the financial damage to car manufacturers. Both mean that a strike can last longer than if all employees resigned at once.
Late Sunday, the UAW reached an agreement with Volvo Group’s Mack Trucks that prevented another potential strike. This also protects the UAW’s strike fund.
The UAW expanded the strikes to additional Ford and GM plants on Friday.
All three stocks traded slightly lower in premarket trading on Tuesday, as did stock market futures.
Since early July, when investors expected a strike, shares of GM and Ford have fallen about 16% and 18%, respectively, while the S&P 500 is down about 4%.
Stellantis shares are up about 8%. Stellantis is a more global company that is comparatively less affected by its activities in the USA. It’s also a cheaper stock. Stellantis shares trade for about 3.4 times estimated 2024 earnings, while GM shares trade for 4.6 times and Ford shares trade for 6.6 times.
Write to Brian Swint at [email protected] and Al Root at [email protected]