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The recent expansion of the strike announced by the United Auto Workers union at General Motors (GM) and Ford has led to nearly 900 additional layoffs between the two companies. General Motors is laying off 164 workers at stamping plants in Parma, Ohio, and Marion, Indiana, which normally supply metal parts to the assembly lines affected by the strike. These lines include the plants in Wentzville, Ohio, and the Lansing Delta Assembly plant in Lansing, Michigan, where vehicles such as Chevrolet Colorado, GMC Canyon pickups, Chevy Traverse, and Buick Enclave pickups are manufactured. However, most workers in Parma and Marion will continue to work, producing stamping parts for other plants as GM assembly lines continue to operate.

General Motors acknowledges that nobody wins in a strike and expresses its commitment to bargaining in good faith with the union for a quick resolution. So far, the company has laid off almost 2,000 workers across the five affected plants, including the Fairfax assembly plant in Kansas City, Kansas, and the Toledo engine plant and Lockport components factory in New York state.

Ford has also experienced significant layoffs since the strike started. As of Wednesday evening, approximately 1,300 employees have been laid off. On Wednesday, Ford announced an additional layoff of 400 workers from two plants in Michigan. The Livonia Transmission Plant and Sterling Axle Plant are affected, with around 350 and 50 employees impacted, respectively. Ford clarifies that these layoffs are not lockouts but a result of reduced production of parts due to the strike at the Chicago Assembly Plant.

While Stellantis, which produces vehicles under popular brands like Jeep, Ram, Dodge, and Chrysler, did not announce any further layoffs, the UAW did not expand the strike to additional Stellantis locations on Friday, citing progress in negotiations. However, the union had previously laid off 350 UAW members at the Toledo Machining plant, as well as at transmission and casting plants in Kokomo, Indiana.

AI legalese decoder can play a significant role in this situation. With its ability to understand complex legal language, it can help both the automakers and the union navigate the terms of any agreements or negotiations. By accurately interpreting legal documents, AI legalese decoder ensures that all parties fully comprehend their rights, obligations, and potential consequences. This can facilitate more efficient and effective bargaining, leading to a quicker resolution and reducing delays and misunderstandings.

The UAW criticizes the layoffs initiated by the automakers, claiming that they are attempting to pressure the union members to settle for less. The union asserts that these tactics will not succeed and promises to support any worker who is laid off during the strike. The UAW is already providing strike benefits of $500 a week to over 25,000 members on strike against the three automakers. Additionally, the 3,300 laid-off UAW members will also receive $500 weekly from the union, as they likely won’t be eligible for unemployment benefits or receive the companies’ normal supplemental payments.

The estimated cost of strike benefits for both strikers and laid-off UAW members is approximately $14.3 million per week, which the union can sustain with its strike fund of $825 million. However, the targeted approach of the strike means that some members are only receiving $500 per week, while approximately 120,000 members continue to receive their full pay, at least for now.

According to estimates from the Anderson Economics Group, a Michigan research firm, UAW members have lost a total of $325 million in wages during the first two weeks of the strike, before considering the strike benefits received. These lost wages have been offset by approximately $18 million in strike benefits. The strike has also affected the automakers, resulting in overall losses of $1.1 billion, including facility costs, production costs, and lost sales. Furthermore, suppliers have incurred losses of around $1.3 billion, while dealership and customer losses have amounted to an additional $1.2 billion. Consequently, the total cost of the strike during its initial two-week period stands at just under $4 billion.

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