New York (AFP)

The continuation of the General Motors workers' strike for more than three weeks is beginning to weigh on economic activity in Michigan (North) and the US Midwest, as more and more subcontractors send employees home.

The technical layoffs have gradually affected suppliers to GM's 31 US plants since the start of the social movement on Sept. 16, said Steve Gruener, president of the UAW (United Auto Workers) Local in Flint, Michigan. .

In addition to the 1,800 GM employees on strike in his region, another 1,200 employees by subcontractors are now deprived of work, he told AFP in a telephone interview.

"The blow to the economy is already huge," said Gruener, adding that the union was "determined to negotiate a fair and equitable contract for our members".

"We will remain on strike for as long as it takes," he added, as talks resumed on Wednesday between GM and the union.

Nearly 50,000 US GM workers are on strike to demand wage increases and improved conditions for employees hired after the bankruptcy group's 2009 historic bailout by the Obama administration.

The claims relate to job security but also health insurance and the status of temporary workers.

- Impact on GDP -

"What started out as an event affecting only a specific group of workers has now become widespread," said Brian Peterson, director of economic analysis at Anderson Economic Group, a research firm.

In a report this week, Anderson said nearly 150,000 auto industry workers were directly or indirectly affected by the strike, including 25,000 GM employees and some 75,000 employees of auto parts companies.

By September 30, the Michigan unemployment insurance agency had already processed compensation claims of about 5,000 workers at auto suppliers because of the strike, according to a spokesman for the Michigan government.

Major subcontractors also have significant operations in other Midwestern industrial states, such as Ohio, Indiana and Illinois.

And this region includes a number of key states that could play a crucial role in the 2020 presidential election.

Paul Traub, an economist at the Federal Reserve (Fed) in Detroit, said the economic cost of social conflict in Michigan was about $ 42 million a week on the basis of lost wages.

GM normally produces 8,400 vehicles a day in the United States. The production stoppage amounts to about $ 100 million of daily loss.

"The economic impact is starting to be noticeable," Traub told AFP, adding that the $ 2 billion loss in production would affect the country's gross domestic product (GDP) estimates. entire country.

"It's a blow to GM's production," said Kristin Dziczek, vice president of the Michigan Center for Economic Research.

The strike is also expected to weigh on the results of automotive component suppliers, leading Wall Street analysts to reduce profit forecasts from large companies such as Magna, a Canadian supplier to General Motors.

"We continue to monitor the situation and hope for an amicable resolution," said a spokeswoman for Magna.

© 2019 AFP