REUTERS: The prolonged strike at General Motors Co is estimated to have hit 150,000 workers in the auto industry, a report from research and consulting firm Anderson Economic Group showed on Tuesday.
The strike at the No.1 U.S. carmaker began on Sept. 16, with its 48,000 members of the United Auto Workers union seeking higher pay, greater job security, a bigger share of the automaker's profit and protection of healthcare benefits.About 75,000 employees of auto parts suppliers have either been temporarily laid off or have seen their wages shrink due to the slump in demand from GM, according to the AEG report.
The research firm estimates that the strike has resulted in a US$660 million profit hit for GM and more than US$412 million direct wage losses for all employees through the third week of the strike. It has also led to US$155 million in lost federal income and payroll tax revenue and US$9.1 million in lost Michigan income tax revenue.
Talks for a new four-year labor contract took a"turn for the worse" on Sunday after the UAW rejected GM's latest offer but the two sides were still talking."We continue to meet with the Company and are still not in agreement on key issues such as wages and healthcare", UAW Vice President and Director Terry Dittes said.
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