After warning over steel tariffs, GM reportedly set to layoff more than 4,000 jobs today
Story updated at 9:50 a.m. (EST)
A purge of jobs, resulting from steel tariffs, is set to continue today at General Motors as the company will reportedly layoff more than 4,000 salaried workers. Shortly after a public warning that the steel tariffs imposed by President Trump will lead to fewer jobs in the U.S., the company began rolling out optional buyouts to 18,000 workers. Then came forced cuts of 14,000 jobs by halting production in several autoplants in the U.S. and Canada.
Kevin Kelleher of Forbes reports:
Starting Monday, the job cuts will begin for salaried employees as GM seeks to eliminate 8,000 jobs by the end of this month, the Detroit News and Detroit Free-Press reported. The layoffs follow a 2018 reduction of 1,500 positions in GM’s contract workforce. The automaker expects the moves to help save up to $2.5 billion in costs this year and a total of $6 billion by 2020.
Beyond the salaried workers who face job cuts, another 6,000 hourly workers at the five plants could still find their positions in jeopardy because of the restructuring.
GM's job cuts have not gone without criticism. Unifor, the Canadian union, took the opportunity to publicy air its grievances with GM during last night's Super Bowl LIII with an ad that accused the automaker of leaving Canadians "out in the cold."
CBC news reports:
Since GM announced its intention to shutter its operations in Oshawa last November, Unifor has organized a number of work actions. Those efforts have been accompanied by a social media campaign targeting the multinational auto manufacturer.
Many of the union's efforts have tried to draw attention to the fact that the federal and provincial governments provided billions of dollars to keep GM and the Chrysler Group LLC afloat in 2009.
All in all, the steel tariffs have done their part to boost domestic steel as Trump promised. (Nucor Corporation recently posted record breaking profits). But if nothing is done to prevent that boost from being at the expense of thousands of jobs, steel utilizing industries in the U.S. will continue to be left "out in the cold."
As reported by the Detroit Free Press, GM has confirmed that it will begin to cut more than 4,000 salaried jobs over the next two weeks.