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General Motors, Ford, and Fiat Chrysler agree to partial plant shutdowns to combat coronavirus outbreak after discussions with United Auto Workers union

Mar 18, 2020, 19:11 IST
  • General Motors, Ford, and Fiat Chrysler Automobiles won't completely close down factories in the US as the coronavirus pandemic worsens, but they and the United Auto Workers union agreed to engage in partial, rotating shutdowns.
  • The UAW had previously called on the companies to shut down factories for two weeks, but announced the above compromise after a Tuesday meeting between the automakers and the union.
  • In Europe, Ford and and FCA have already shut down manufacturing for two weeks.
  • Visit Business Insider's homepage for more stories.

Late Tuesday night, the United Auto Workers union announced that after discussion with the leaders of General Motors, Ford, and Fiat Chrysler Automobiles, the carmakers would partially shut down factories on a "rotating" basis to combat the widening coronavirus outbreak.

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The decision comes after a stream of event cancellations, as well as tightening recommendations on group gatherings and encouragement to practice social distancing from the Centers for Disease Control and Prevention, in response to the more than 200,000 confirmed coronavirus cases and 8,000 deaths worldwide.

"All three companies have agreed to new measures that will increase adherence to CDC recommendations on social distancing in the workplace," the UAW said on its website. "Most importantly, all three companies have agreed to review and implement the rotating partial shutdown of facilities, extensive deep cleaning of facility and equipment between shifts, extended periods between shifts, and extensive plans to avoid member contact."

The UAW had earlier asked the Detroit Big Three to shut down for two weeks. UAW leadership said it felt "very strongly, and argued very strongly" that a shutdown was the most responsible thing to do, but that the companies "were not willing to implement this request."

Discussions between the UAW and Big Three on what to do at the automakers' US factories have been in the news for days. On Sunday, the UAW announced a newly formed coronavirus task force to manage the criss, led in part by UAW President Rory Gamble and the CEOs of the three companies.

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But the approaches to car manufacturing in the US have been different than in some other parts of the world. In Europe, FCA and Ford are already shutting down production for two weeks. The Volkswagen Group, Daimler, Peugeot, Renault, Ferrari, and Lamborghini also announced shutdowns.

In North America, FCA has already experienced a work stoppage at its factory in Windsor, Ontario and a positive coronavirus case at a facility in Indiana.

In a statement about the eventual decision to partially shut down factories, FCA said: "Following several days of proactive discussions with our UAW partners focused on providing a safe environment for our employees, we have agreed that in addition to our extensive current protocols to protect our employees, FCA will implement a series of shift pattern and production changes across our manufacturing plants in the United States."

FCA said those changes, including more sanitation and rotating shifts to allow for further separation of employees, "are focused on providing a safe environment and peace of mind to our employees at their place of work."

GM told Business Insider that it was "suspending overtime at US assembly plants and the warehouses, components and Global Propulsion Systems facilities," and that it would "adjust schedules accordingly" to allow for additional plant cleaning.

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Ford said it would update on the decision in 24 hours, while stressing its commitment to the health and safety of its workforce.

"Ultimately this will pass, and when it does, it is important to me that we can say we worked hard with our UAW partners to provide the safest work environment for our people," FCA CEO Mike Manley said in a statement after visiting several plants to review coronavirus changes.

The UAW represents roughly 150,000 workers at the Big Three's facilities in the US.

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