Cars and Drivers

UAW Seeks for Auto Factories to Close After Coronavirus Case Update

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Some industries just cannot have their employees work from home. That fits the bill for most automaker workers who are involved in the factory lines that put these automobiles together. The United Auto Workers has issued an update about a positive coronavirus case of a worker at the GM Warren Technical Center. For the economic aspect of the announcement, the UAW is now calling for Detroit’s big-three automakers to temporarily close down their auto factories for a period of two weeks in an effort to protect the workers from contracting and the spreading coronavirus.

According to reports, union president Rory Gamble has indicated that the auto companies were not willing to stop production. The auto companies and the union are also expected to meet on Tuesday evening to discuss safety measures. There is also a warning that they could take unspecified further actions if the union is not satisfied with the discussions.

As for the fiscal portion of how this unfolds, the big-three auto companies employ roughly 150,000 auto workers around the country at dozens of factories and central areas where parts and systems for making the cars are kept.

The current UAW guidelines for its members (and others) is to wash hands frequently, to use hand sanitizer frequently, to avoid touching their face, and to avoid contact with others within two to three feet. The UAW statement also indicated that anyone experiencing symptoms of a high fever, dry cough or illness should take precaution. The UAW statement said:

Since mid-February, the UAW has been actively monitoring and reacting to issues related to the spread of coronavirus. We are working with GM on the precautions and measures necessary to protect our UAW GM members and everyone who works in our facilities.

The UAW feels strongly that no member should be disadvantaged in response to doing the right thing regarding the coronavirus exposure. Our first priority is to ensure the health and welfare of our members. That includes instances of quarantine which are in the best interest of our members, the public and the company operation.

Perhaps a larger question beyond the big-three automakers is what happens at all these component makers and parts makers. Many of those businesses are now global in nature and the supply lines may have run into issues as the coronavirus has closed many factories in China and Asia.

Shares of General Motors Co. (NYSE: GM) were last seen trading down 5.7% at $19.81, and after a new low today, the new 52-week range is $19.60 to $41.90. Ford Motor Co. (NYSE: F) was down almost 2% at $4.90, with a new 52-week range of $4.73 to $10.56.

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