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The United Auto Workers were on strike against General Motors despite the fact that the two parties are still in negotiation. The primary cause of the strike is job security specifically for GM plants located in Fairfax, Kansas; Spring Hill, Tennessee; and the Lordstown, Ohio---these are the very same plants without any future product planned that is according to Edmunds’ Auto Observer.

Senior Michelle Krebs, Edmunds’ Auto Observer Senior Editor also commented that: "A strike is good for no one: not for GM, the UAW, the Detroit area and other GM towns, nor the global economy. But, the economy and car market are relatively soft, and GM has a reasonable stockpile of inventory – companywide, the average is 87 days’ worth, above the industry norm of 60-65 days."

A strike is not something that GM needs right now especially with some of its models gaining sales momentum. Philip Reed, Consumer Advice Editor for Edmunds.com also said, "Those planning to buy a GM vehicle should act quickly before the inventory dwindles down and negotiations become challenging as demand exceeds supply."

The effect of the strike reaches Canada and Reuters has reported that there is the possibility that 100,000 Canadian workers could be laid off by the end of this week if the strike at General Motors’ US operations continues.

CAW President Buzz Hargrove said in a televised news conference that around 80,000 to 100,000 employees in the Canadian auto sector could be laid off and that includes 40,000 employees from parts manufacturers that supply GM.

Mr. Hargrove said, "To put it into perspective, we have about 80,000 workers in Canada that work in the automotive parts sector and General Motors buys about 50 percent of all automotive parts that are manufactured in Canada. You can expect up to 40,000 auto parts workers to be laid off in the next three days."

There would also be around 17,000 direct employees at General Motors in Canada that may be affected if the strike continues. He also added, "So, it's not inconceivable that by the end of this week, we could have between 80,000 to 100,000 people unemployed, mostly in Ontario, some in Quebec, as a result of the dispute between General Motors and the United Auto Workers in the United States."

Currently GM has two car plants and one truck plant in Oshawa, Ontario, a transmission plant in Windsor, Ontario, and engine and components plant in St. Catherines, Ontario, a parts and distribution plant in Woodstock, Ontario, and joint venture facility with Suzuki Motor Corp. in Ingersoll, Ontario---all these are to be affected by the strike as a matter of fact, the transmission plant in Windsor has closed down after the strike began.