General Motors will lay off its third shift of workers at the assembly plant where it builds its midsize pickups and full-size vans as cases of coronavirus surge in the surrounding community.
The automaker said starting July 20 it will reduce its Wentzville, Mo., assembly plant near St. Louis to two shifts.
"We believe in the short term a two-shift operation plan will allow us to operate as efficiently as possible and accommodate team members who are not reporting to work due to concerns about covid-19 in the local community," GM spokesman David Barnas told the Free Press on Saturday.
But the layoffs will delay GM's efforts to restock supplies of the usually hot-selling Chevy Colorado and GMC Canyon pickups, Barnas said. Second-quarter sales saw a big decline in the slowing economy.
There are 1,250 workers per shift at Wentzville, he said. GM is still working on the details regarding the exact number of workers for temporary layoffs, he said. Also, there is no time frame set yet on the length of the layoff.
[CORONAVIRUS: Click here for our complete coverage » arkansasonline.com/coronavirus]
"We are working on a staffing plan that will allow us to return to three shifts as soon as possible," Barnas said.
The move comes after UAW leadership and GM leadership were in discussions all week as to what to do about Wentzville and GM's Arlington Assembly plant in Texas, said two sources familiar with the matter who declined to be named because they are not authorized to share that information. Arlington is also experiencing a surge in coronavirus cases.
Since the UAW negotiated its current contract before the outbreak of coronavirus, there is no clause to address how to handle it, therefore the union and the automakers must stay in continual discussions on ways to address the changing situation.
Late Friday night, the local shop chairman at Wentzville sent out a union posting to members that was obtained by the Free Press.
It read: "I have just been notified that a third shift is going on temporary layoff very soon due to many 'manpower' issues! More information will be provided ASAP! Plans are currently being developed to minimize the impact on membership. Updates will be provided asap! This is not good! Chairman Alan Chambliss."
Neither the UAW Local 2250 Shop Chairman Chambliss nor President Glenn Kage could be reached for comment.
The UAW could not immediately comment on the news, but spokesman Brian Rothenberg said, "We are monitoring the situation."
GM has laid off workers at another plant since restarting U.S. factories. In June, GM said it would cut the third shift at its Spring Hill Assembly plant in Spring Hill, Tenn. By July 31, GM will lay off 525 production and skilled traders workers and 155 temporary employees at the plant. The cuts are related to sluggish auto sales in the sagging economy, GM said. GM makes the Cadillac XT5, Cadillac XT6 and GMC Acadia SUVs in Spring Hill.
Wentzville is one of GM's key plants. It assembles the profitable Chevrolet Colorado and GMC Canyon pickups. GM also builds the Chevy Express and GMC Savana full-size vans in the 5.1-million-square-foot plant.