With More Americans Going Jobless, Michigan And California Allow Factories To Reopen

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With More Americans Going Jobless, Michigan And California Allow Factories To Reopen

On Thursday, the two U.S. manufacturing powerhouses, Michigan and California, gave a green signal to factories to reopen from coronavirus lockdowns over the next few days. Both states had no choice as millions of more Americans lost their jobs due to the pandemic.

Michigan Governor, Gretchen Whitmer, allowed the manufacturers in her state to restore to function from May 11. This decision would bring a huge relief to North American automakers seeking to bring thousands of idled employees back to work this month.

With more than 835,000 Americans employed in vehicle manufacturing, the U.S. auto sector accounts for 6% of the country’s total economy.

However, Whitmer has extended the stay-at-home order for two more weeks to avoid a new surge of coronavirus infections in the Midwestern industrial state, which has been severely hit by the virus and by business closures.

As the key parts suppliers are based in and around Michigan’s automaking hub of Detroit, Whitmer had held off her lockdown orders, drawing protests and continuous efforts to restart vehicle assembly anywhere in the United States.

In her statement, Whitmer said, “We’re not out of the woods yet, but this is an important step forward.” 

Mexico is another crucial link in the chain. As per the executives, if it does not let suppliers get back to work, automakers will not be able to restart most U.S. production for more than a few days.

Talking on the condition of anonymity, a senior Mexican official said that the government would inform the public of its plans to restart the auto industry on Monday.

On the other side, California Governor Gavin Newsom disclosed the rules allowing manufacturers in his state – ranging from computer makers, electronics, and textiles to the aerospace and chemical plants – to resume functioning as early as Friday.

As per his orders, the warehouse and logistics facilities can also resume work, and retail businesses can offer curbside service.

Newsom, who is the first U.S. governor to stop most commercial activity in his state – on March 19 – said significant progress had been made in curbing California’s infection rate to grant a safe and steady economic reopening.

However, Newsom also added that companies must meet reopening criteria such as physical distancing of staff, coronavirus testing for employees, and workplace training on hygiene and infection control.

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