💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Senators, union press GM CEO on plant closings, job cuts

Published 12/03/2018, 04:59 PM
© Reuters. FILE PHOTO: General Motors CEO Mary Barra addresses the media ahead of the start of GM's annual shareholders meeting at the Renaissance Center in Detroit
GM
-

By David Shepardson

WASHINGTON (Reuters) - General Motors (N:GM) Chief Executive Mary Barra, facing growing criticism, will meet with Ohio's two U.S. senators on Wednesday about the Detroit automaker's plans to idle five North American plants and cut up to 15,000 jobs.

Senator Rob Portman, a Republican, and Sherrod Brown, a Democrat, said in a joint statement they will "press" GM to save the Lordstown, Ohio, plant in the northeast part of the state.

The announcement came as the United Auto Workers union on Monday sent a letter to GM formally objecting to the decision to end production in 2019 at four U.S. plants, saying it violates commitments made during contract talks in 2015. The decision to close an assembly plant in Ohio has come under fire from President Donald Trump and others.

In the letter seen by Reuters, the UAW asked GM to rescind the decision and resolve the fate of the plants during negotiations next year. Calling the plants "unallocated" does not relieve GM "of its obligation to comply" with a moratorium on plant closings, the UAW letter said. "We will use all of our resources to enforce our agreements," the letter said.

GM did not immediately comment.

Since early 2017, GM has cut two of the three production shifts at the Ohio plant that makes the Chevrolet Cruze car, eliminating 3,000 jobs. GM has said it is closing the plants due to sagging demand for cars.

In addition to the plant closings, GM is cutting about 8,000 salaried jobs in North America on top of the 2,250 salaried workers who volunteered to take buyouts.

Barra has additional meetings planned with lawmakers on Wednesday and Thursday from states that are impacted and some congressional leaders, congressional aides said. At least one Democrat, Tim Ryan of Ohio, has called for congressional hearings on GM's decision next year.

Maryland's two senators, Ben Cardin and Chris Van Hollen, and four other members of Congress from the state wrote Barra on Friday asking her for a meeting about the company's plans to close a facility near Baltimore that received more than $100 million in federal subsidies.

© Reuters. FILE PHOTO: General Motors CEO Mary Barra addresses the media ahead of the start of GM's annual shareholders meeting at the Renaissance Center in Detroit

"Closing a productive plant when GM has accepted significant public assistance and has reported healthy third-quarter profits of $2.5 billion is an example of extremely poor corporate citizenship," the lawmakers wrote.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.