General Motors temporarily lays off 6,000 workers in Mexico

PTI New York | Updated on October 02, 2019 Published on October 02, 2019

General Motors workers are seen while leaving their shift, outside the GM pickup and transmission plant in Silao, Mexico.   -  Reuters

The layoffs affect the Silao assembly and transmission plants in central Mexico

General Motors has laid off 6,000 workers in Mexico temporarily due to a US labour strike that has disrupted production at two plants south of the border that make pickup trucks, the company said on Tuesday.

The layoffs affect the Silao assembly and transmission plants in central Mexico, where work has been “disrupted as a result of a parts shortage related to the UAW strike,” a GM spokesman said. The Silao workers are expected to return to their jobs after the strike, the spokesman said.

The plants in Guanajuato, produce GMC and Chevrolet pickup trucks. The moves come on top of the furlough of more than 3,000 workers in Canada and at an Ohio plant where GM operates a joint venture with Isuzu to make diesel engines.

Also read: GM to close Canadian factory, putting 3000 jobs at risk: Report

Nearly 50,000 US workers are on strike at GM due to a United Auto Workers conflict over the labour contract now in its third week. Workers launched the strike on September 16 after contract talks failed to yield an agreement on wages, health benefits, temporary workers and job security.

Read more: Around 46,000 General Motors auto workers strike in US

The strike also comes against the backdrop of GM’s decision last November to effectively shut five plants in North America. A report Tuesday from JPMorgan Chase estimated that the strike has so far cost GM USD 1 billion, adding that the company has the potential to recover some of the lost profits in the fourth quarter if the strike ends soon.

Published on October 02, 2019
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