GM strike: Suppliers say as many as 12,000 employees temporarily laid off

The General Motors strike by the United Auto Workers is causing major nationwide side effects.

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Up to 12,000 workers have been temporarily laid off from more than 100 companies that supply parts to GM, an industry group said Tuesday. The temporary layoffs have affected salaried and hourly employees, according to Original Equipment Suppliers Association.

Approximately 50,000 UAW workers went on strike Sept. 16.

"As GM and the UAW enter the fourth week of negotiations, the impact is increasing," Julie A. Fream, president and CEO of OESA, said. "Given the low U.S. unemployment rates and shortage of skilled trades workers, companies may be challenged to ensure laid-off employees return to their previous positions."

One of many gates are locked at General Motors' Flint Assembly Plant during the nationwide UAW strike against General Motors on Monday, Oct. 7, 2019, in Flint, Mich. (Jake May/The Flint Journal via AP)

"Upon conclusion of the strike, this could cause extended disruption in the supply chain as suppliers ramp up their production," Fream continued. "We are hoping for a quick resolution that is amicable for both sides and will continue to support our members during this time."

Consulting firm Anderson Economic Group, meanwhile, asserted that the number of people affected by the strike has tripled since it began -- from the initial 50,000 to 150,000 auto industry workers.

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GMGENERAL MOTORS COMPANY36.26+0.76+2.14%

“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.

Through the first three weeks of the strike, AEG estimates that GM has lost $660 million in profits, employees have lost $412 million in wages, the state of Michigan has lost $9.1 million in income tax revenue, and the U.S. has lost $155 million in federal income and payroll tax revenue.

A GM spokesperson told FOX Business: "Talks continue with the UAW and we remain focused on reaching an agreement that builds a stronger future for our employees, our communities and our business."

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FOX Business' Grady Trimble contributed to this report.

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