Thousands of GM UAW members told to stay home, pickup production stalled – Detroit Free Press

A full-size Chevrolet Silverado is ready to roll off the assembly line at Flint Assembly.(Photo: Jeffrey Sauger, Jeffrey Sauger for General Motors)

Thousands of General Motors union members will remain laid off at least another week and a speedy ramp-up inproduction ofthe automaker'shighlyprofitable pickups is now in a holding pattern.

GM can't get the flow of parts it needs to support bringing backsecond shiftworkers at GM's Flint Assembly and Fort Wayne Assembly plants, several sources toldthe Free Press on Friday.

That means GM'splans to nearlydouble pickup output at the two factoriesaredelayed.

Any delay in pickup production is bad newsfor GM. The vehiclesalreadyfacelower-than-usual supply because of the 40-day UAW strike against GM last fall. The pickups, which carry fat profit margins,are crucial to GM's bottom line.

In fact, during GM's first-quarter earnings, CEO Mary Barra said as GM restarts its production after the coronavirus shutdown"trucks and full-size SUVs will remain a very high priority." GM idled its North American plans in March because ofthe pandemic.

Union members told the Free Press that GM is delaying its callback of more than 2,000 workers in Michigan and Indiana.

The workers were scheduled to returnTuesday. Instead, those at Fort Wayne in Indiana will return June 1, saidRich LeTourneau, shop chairman for UAWLocal 2209, which represents workers at Fort Wayne where GM builds the light-duty Chevrolet Silverado and GMC Sierra pickups.

We had all intentions of bringing back second shift on the 26th; however, because of the COVID pandemic in Mexico we get some harnesses from them they have not opened up their doors 100% yet, LaTourneau said.We cant bring on a second shift.

A GMC Sierra 1500 travels down the assembly line at GM's Fort Wayne Assembly in Fort Wayne, Indiana.(Photo: Ryan Hake, General Motors)

A harness is a bundle of wires wrapped togetherfor easy installation in a vehicle, located under the dash. It connects the electronics in the pickup, LaToureanu said, explaining that everything thats digital goes through that harness. The truck cant run without it.

About 80% of wiring harnesses that go invehicles built in North Americaare madein Mexico, mostly in the Maquiladora plants alongthe U.S.-Mexico border with some work done on each side, said Jon Gabrielsen, auto industry consultant.

"The border area of Mexico is one of the biggest hot spots for COVID-19, half of the Mexican states with the highest number of cases and deaths are border states," Gabrielsen said. "So it may not get better supply soon."

GM spokesman Jim Cain declined to discuss the specifics of the production schedule or when employees will return, saying: We continue to plan to ramp up production in a gradual cadence."

At GM's Flint Assembly, where the heavy-duty and regular-cab pickups are made, management told workerslate Thursday that the return of a second shift has been delayed.

In aGM alert to workers, obtained by the Free Press, it read:"As you know, a portion of our production operations resumed the week of May 18, 2020. At this time, we have NOT established a return to work date for remaining production operations. Return to work updates will be shared with employees as soon as additional information becomes available."

A worker at Flint, who asked to not be named because he is not authorized to speak to the media, said, "Weve been told by management its a parts shortage from suppliers, but no idea where its from."

A message from the UAW local shop chairman to workers, also obtained by the Free Press, said: "The launch of the second shift next week has been delayed. The expected start timing will not be understood until sometime next week. We believe this is only a minor delay."

Flint employees said they have been told second shift could start June 1, but it is not confirmed. Cain declined to comment.

GM employs about 5,200 people at the Flint Assembly plant, according to its website. About 1,200 to 1,500 people work per shift, several employees said.

At Fort Wayne, LeTourneau said there are about 1,300 people scheduled for each shift. With second shift pushed back to June 1, it will likely mean the third shift will also be pushed back. Third shift was supposed to start June 1, but LeTourneausaid, GM won't bring back two shifts at the same time.

If we dont get the partwe need, theyll delay the shifts again," LeTourneau said. "Right now, there is one plant open in Mexico getting us what we need."

It's enough for the first shift to churn out 200 pickups a day, but normally they build 440 pickups a shift, or 1,290 a day, he said.

GM's Flint and Fort Wayne factories accounted for about 62% of GMs output of large pickupslast year, according to the Wall Street Journal, citing data from researcher Wards Intelligence.

The Journal cited Credit Suisse sayingGMs truck sales brought in nearly$10.7 billion in pretax profit last year,or about 90% of the companys total, excluding the impact of the strike.

Meanwhile, GM got approvalfrom the government of Mexico onThursday to restart its plants south of the border.GM is opening three assembly plants and powertrain and stamping plants that support them in a gradual restart beginningThursday night.

More: GM to restart its plants in Mexico as soon as Thursday night

More: GMs Barra, leaders want to experience factory work conditions

Here are GM's plants in Mexico:

GM said it was restarting the engines and transmissions plants in Ramos Arizpe and Silao complexes, located in Coahuila and Guanajuato states respectively, Thursday evening.

GM said its assembly plantswithin the Ramos Arizpe and Silao complex could tentatively restart operations Friday, depending on the status of their suppliers.

But the Silao plant is the third pickup factory GM has,so presumably it will also be constrained by the same Mexican supplier of wiring harnesses, Gabrielsen said.

The restart date of GM's manufacturing operations in the complexes in Tolucaand San Luis Potos is still being determined, GM said.

Contact Jamie L. LaReau: 313-222-2149 or jlareau@freepress.com. Follow her on Twitter @jlareauan. Read more on General Motors and sign up for our autos newsletter.

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Thousands of GM UAW members told to stay home, pickup production stalled - Detroit Free Press