GM temporarily lays off 6000 workers in Mexico due to strike

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A report on Tuesday from JPMorgan Chase estimated that the strike had cost GM about $1 billion so far.

The strike by more than 49,000 union workers is now in its third week, and both sides are feeling the impact.

The UAW's top negotiator rejected the company's latest proposal in a letter sent to local union presidents and plant chairman that make up the GM Council, which will ultimately have to approve any tentative agreement before it is set to a ratification vote by union members.

"There were many areas that came up short like health care, wages, temporary employees, skilled trades and job security to name a few", wrote Dittes, director of the union's GM department.

In the letter, he said the latest proposal, of which the details were not public, didn't meet union demands or its needs.

The union has been firm on its stand that a proposal submitted by General Motors did not satisfy the necessities in the worker contract.

GM books revenue from building vehicles as soon as they change hands from the factory to the company that ships them to dealers. The company is losing $82 million per day, he calculated.

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The company said 6,000 workers are impacted at Mexican facilities that build pickup trucks and transmissions. So revenue has been counted already for almost all vehicles that are in dealer hands.

Also, workers are seeking greater health benefits and that the entity limit the use of temporary employees and cancel its plans to close the respective Lordstown and Hamtrack plants in 2020 in OH and MI.

To date, GM has shed around 10,000 workers, officials revealed, as there was another layoff last week and in the past weeks since the strike kicked off 16 days ago.

The automaker cited a parts shortage due to the strike as the reason for the plant closure.

Since the almost 50,000 union workers dropped the tools and picked up the picket signs in hopes of better wages and health care, companies like ABC Undercar Products Groups in Wyoming have lost one of their biggest clients: GM. He said the time will come when GM's board will say enough is enough and tell executives to give workers what they want.

The strike has shut down many of GM's 22 USA parts warehouses, but some remain open, staffed by management.