The United Auto Workers union strike against General Motors Company (NYSE: GM) has forced GM to stop production at more factories across Mexico.
General Motors announced it was shutting down its auto factory complex in the Mexican city of Silao as of October 1, due to the lack of needed components from plants located in the United States.
The work stoppage affects 6,000 employees in Mexico, many of whom were informed they would only receive a percentage of their salary while the strike continues in the U.S.
Of the 19,000 employees GM has throughout Mexico, all 6,000 who work at the Silao plant were sent home temporarily until operations in the United States resume, according to a report from BBC Mexico.
The Silao factory manufactures and exports vehicles such as the Chevrolet Silverado, Cheyenne and GMC Sierra models.
The cuts at GM’s Silao plant brings the number of North American layoffs due to the UAW strike to around 10,000. GM has also shut down a plant in Canada due to UAW strike.
Last week, GM halted operations at two maquiladoras (factories) located in the Mexican city of Piedras Negras, affecting 200 workers.
Production at GM’s plant in the Mexican city of Ramos Arizpe, which is responsible for producing the Chevrolet Blazer and Chevrolet Equinox, may also be in danger, according to El Financiero.
GM’s San Luis Potosi plant, which produces the Chevrolet Trax and Chevrolet Equinox, remains operational.
The UAW strike against GM is in its 18th day. Around 49,000 UAW workers at GM went on strike on September 16 seeking higher pay, greater job security and a bigger share of profit and protection of healthcare benefits from the company.
The strike has now cost GM more than $1 billion USD in lost production during the third quarter, according to estimates by J.P. Morgan.
The Yucatan Times Newsroom with information from Yahoo Finance