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100,000 non-UAW workers losing pay during GM strike

John Gallagher And Phoebe Wall Howard, Detroit Free Press on

Published in Business News

DETROIT -- A new analysis estimates that as many as 100,000 workers -- beyond the roughly 46,000 UAW strikers -- have been laid off, face pay reductions or have otherwise been hurt by the lengthening strike against General Motors.

The East Lansing-based Anderson Economic Group estimated Tuesday that 25,000 salaried GM workers have seen their wages affected. In addition, another 75,000 employees of auto parts suppliers have either been temporarily laid off or had their wages reduced since GM assembly plants were not taking their parts or services, AEG estimated in its new analysis.

"What started as a concentrated event affecting a select group of workers has now ballooned in scope," said Brian Peterson, AEG's director of public policy and economic analysis.

In a phone interview, Peterson said an analysis of GM's financial filings indicates that 25,000 white-collar GM employees have jobs linked to the work of striking UAW members. Some of those white-collar employees may be taking furloughs or are contract workers told not to come in during the strike.

Lost profit sharing

Others may still be working but will see their profit-sharing checks or bonuses reduced this year because of strike-related losses.

 

"Another big one for the auto parts suppliers in that many of (their workers) are hourly," Peterson added. "If you work at a parts supplier where 25% of your business is making parts for GM vehicles, there's obviously going to be either a layoff or reduced hours for those individuals making parts for GM."

Losses have spread far and wide and impacted suppliers to GM plus everything from car dealers to restaurants that catered to UAW members.

An estimated 10,000 assembly workers in Canada and Mexico have been put on temporary layoff because of parts shortages related to the strike.

"I think if you're an automotive parts supplier, maybe you can handle a couple of weeks of not doing business with GM because you're doing business with Ford or Toyota or Honda," Peterson said. "But at some point when 25% of your businesses is GM, it's hard to go on for more than a few weeks without that having a major impact."

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