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More Than 1,000 Workers Laid Off Due To GM Strike

Janesville Companies Depend On GM Plant

POSTED: 5:48 pm CDT September 25, 2007
UPDATED: 7:52 pm CDT September 25, 2007

As the United Auto Workers' nationwide strike against General Motors continues, many businesses in Janesville that are dependent on the GM plant are feeling the impact.

VIDEO: Watch The Report | VIDEO: Workers Take To Picket Line | VIDEO: Hundreds Of Statewide Suppliers Affected By GM Strike | TALKBACK: What Do You Think?

More than 1,000 workers in Janesville alone have been laid off as a result of the strike.

About 73,000 GM workers left the assembly line for the picket line on Monday, including 2,800 workers at GM's Janesville plant, WISC-TV reported.

For three weeks, UAW International and GM negotiators have been trying to find common ground on key issues, including job security and health benefits. However, a last-minute effort to reach a deal broke this weekend and workers left the job on Monday morning after a deadline passed.

LSI Incorporated laid off approximately 320 workers. The company is a central distribution point for many of the components that go into trucks built at the Janesville GM plant.

Lear Corp. builds the seats in every Chevrolet Tahoe and GMC Yukon that leaves the Janesville plant. Without vehicles being built, 750 of the facility's 780 employees have been sent home.

The workers are now dependent on unemployment, WISC-TV reported.

"Even though there is some monetary benefit coming in, there's a big difference between unemployment and 40 hours a week. It makes it very difficult for people to have something like that happen all the sudden," said Mike Vaughn, chairperson of UAW Local 95, Lear Unit 11.

Workers at Lear and LSI are also UAW members but are not on strike.

"We're completely at the mercy of the strike between GM and UAW. We can only hope that it will be short lived and both parties can come to an agreement," Vaughn said.

There were Lear employees on the picket line Tuesday, supporting the strike in the rain. Even though they're laid off right now, they know it's ultimately temporary. However, if General Motors were to close down the Janesville plant, they too could be out of a job.

Analysts said that if the strike against GM lasts more than a week or two, it could cost the company billions of dollars.

The UAW's Web site said striking workers will receive $200 a week plus medical benefits from the UAW's strike fund, which had more than $800 million as of last November.

The UAW hasn't called a nationwide strike during contract negotiations since 1976, when Ford plants were shut down. The 1976 strike didn't last a week, WISC-TV reported. There were strikes at two GM plants during contract negotiations in 1996.





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