UPDATE 1-GM cuts N. American production, plans layoffs

By Kevin Krolicki

DETROIT, Jan 26 (Reuters) - General Motors Corp GM.N on Monday said it would lay off 2,000 workers at two assembly plants in Michigan and Ohio and temporarily idle another nine North American assembly plants in response to weak demand.

GM said it would cut second shifts of workers at plants in Lordstown, Ohio, and Delta Township near Lansing, Michigan. Those moves will slow production of the Chevrolet Cobalt and a trio of crossover vehicles including the Buick Enclave.

The production cuts come at a time when U.S. auto sales are near their lowest level since the early 1980s and will add to rising unemployment claims as well as pressure on the struggling auto parts supply sector.

GM's planned shift reduction will mean 800 layoffs at the Lordstown plant and 1,200 at the Delta Township plant, GM spokeswoman Susan Waun said.

"We're just continuing to bring our production in line with market demand," Waun said.

GM factory workers in the United States are represented by the United Auto Workers.

The union is expected to surrender a controversial provision of its current contract that guarantees nearly full wages to auto workers whose jobs are eliminated as a condition of winning support for GM's $13.4 billion federal bailout.

The 2,000 workers on the eliminated shifts in GM's Michigan and Ohio plants will be eligible to collect just over 70 pct of their normal wages through benefits provided by GM and state unemployment benefits for 48 weeks, Waun said.