The United Auto Workers union on Oct. 1 rejected General Motors Co.'s latest comprehensive proposal that was brought to the bargaining table, saying the offer did not satisfy union members' demands or needs.
In a letter to union members, Terry Dittes, vice president and director of UAW General Motors Department, said the carmaker's offer on the 15th day of the strike fell short in terms of key demands such as healthcare, wages, temporary employees, skilled trades and job security.
The UAW is pushing for fair wages, affordable healthcare, a share of GM's profits, job security and a defined path to permanent seniority for temps.
"We have responded today with a counterproposal and are awaiting GM's next proposal to the union. Regardless of what is publicized in print or social media, etc., there are still many important issues that remain unresolved," Dittes said.
The rejection comes as GM idled a plant in Mexico — temporarily laying off around 6,000 workers — after the company suffered parts shortages due to the ongoing UAW strike in the U.S., CNBC reported. The Mexican plant manufactures Chevrolet Silverado and GMC Sierra 1500 pickups, the report said.
The strike, which entered its third week on Sept. 30, has so far brought the number of layoffs for non-UAW represented employees in North America with GM to about 10,000, the news outlet said, citing officials. The layoffs affected 450 workers at the Silao plant in Guanajuato, Mexico, last week, as well as the roughly 3,200 workers in Canada and 525 hourly employees at the DMax engine facility in Ohio, CNBC said.
GM did not immediately respond to S&P Global Market Intelligence's request for comment.
The company's stock closed down 3.66% to $36.11 on Oct. 1. It bounced back 0.19% to $36.18 in after-hours trading.
Bank analysts had earlier estimated the strike's impact to be about $50 million to $100 million a day, while S&P Global Ratings pegged the impact to be about $1 billion in cash if the strike lasts a week.
