The employee of GM (General Motors) along with the company itself, have been losing 100s of Million Dollars as the employee walk off over the pay & health benefits has entered its 3rd week.
With no probable end to this strike by the employees, the extending negotiations by the company to reach the fresh new labor agreement comprising of 50,000 members from the United Auto Workers has now paralyzed the production process for more than 30 manufacturing units expanding in 9 various states.
As estimated on 26th September, General Motors lost a profit margin of whopping $113 Million with its plants shuttering and thin workforce, as confirmed by reports provided by Anderson Economic Group.
The UAW worker, small businesses, as well as the suppliers of auto parts that cater services and products to General Motors have renounced direct earnings worth $266 Million, as per the same report. This translates to a whopping $70 million lost in the payroll taxes and federal income. This extended fallout is most likely bound to grow with time and its ripple effects will surely be seen all throughout the auto-manufacturing and supply chain in America.