Chevrolet And GMC Face Lawsuit

Jan. 06, 2019 9:50 AM ET by Jared Rosenholtz / 13 Comments

The issue continues to sour for GM.

Towards the end of last year, General Motors made a bombshell announcement when it killed off six sedan models and closed down several factories. Many of GM's stockholders were angered by the move, as was President Trump.

As it turns out, the workers who were laid off by GM are none too happy. A report by WFMJ claims GM is now being sued by the United Auto Workers Union (UAW) for violating a previous agreement allowing GM to hire temporary workers at its Fort Wayne assembly plant in Indiana.

The original agreement with the UAW allowed GM to hire temporary employees from May 31, 2018, through August 31, 2018, to help reach a production ramp up for the company's new pickup trucks. According to the details of the lawsuit, GM continued to use these temporary workers instead of hiring laid-off workers from the Lordstown assembly plant in Ohio. The UAW says many of the 690 laid-off workers had applied for jobs at the Fort Wayne plant.

An official statement from GM says, "Late last year, GM started the process to bring about 50 Lordstown employees to Ft. Wayne to fill some of the positions that had been covered by temporary employees. In fact, about 35 Lordstown UAW members will be in place by the end of January. We have ongoing discussions with the UAW regarding our staffing needs in Ft. Wayne, but have no further comments on the lawsuit."

The UAW is currently asking the court to order GM to stop using temporary workers and to transfer union workers from the Lordstown plant. The Lordstown plant, which built the Chevy Cruze, was one of the plants to be affected by GM's big announcement. In total, 1,600 people lost their jobs when the Lordstown plant closed down.

Chevrolet And GMC Face Lawsuit

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Chevrolet And GMC Face Lawsuit

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