As the United Auto Workers (UAW) strike against Ford, General Motors, and Stellantis stretches into yet another week, we’re starting to see more and more automotive assembly plants – and suppliers – affected by this labor action. On the Blue Oval side of the equation, Ford has laid off 600 workers at the Michigan Assembly plant and and 400 more at the Livonia Transmission plant and the Sterling Axle plant, the latter two of which supplies parts to the on-strike Chicago Assembly plant, while LM Manufacturing – which makes seats for the Ford Bronco – temporarily laid off 650 workers last month as well. However, it isn’t alone, as the UAW strike is reportedly impacting around 30 percent of automotive suppliers at the moment, according to MEMA Original Equipment Suppliers.
MEMA recently surveyed its members seeking some insight into the impact the strike is having on their business, and found that around 30 percent of those companies have laid off some direct labor employees as a result, with 60 percent expecting to begin laying off workers by mid-October. Additionally, 70 percent of suppliers are concerned about their financial viability, while 50 percent say they’ll need at least a week to ramp production back up to pre-strike levels once that action has ended.
As a result, MEMA is working with the U.S. government to try and secure $200 million in funding to help smaller suppliers – typically Tier 2 or lower – weather this proverbial storm, which could prove disastrous to the overall automotive supply chain in general. As the organization points out, vehicle suppliers employ a total of 900,000 people in the U.S., while those companies contribute 2.5 percent of the U.S. Gross Domestic Product (GDP).
In the meantime, the public rhetoric between the union and automakers has reached a new fever pitch, with Ford CEO Jim Farley and GM CEO Mary Barra both accusing the UAW of negotiating in bad faith and purposely holding up contract talks – allegations that Fain has called an outright lie. Regardless, earlier this week, Ford submitted its seventh contract proposal to the union, seemingly bridging the gap between the two sides at least a little. The union will present an update on negotiations this afternoon, hinting that it will take additional action against at least one automaker.
We’ll have more on the UAW strike soon, so be sure and subscribe to Ford Authority for the latest Ford-UAW news, UAW news, and comprehensive Ford news coverage.
Comments
This strike is going to end badly for the UAW. Ford is hurting and the workers have been putting out crap products. How many recalls? Ford dealers hurting the brand as well. What a mess.
2 of the main reasons UAW is striking:
1.) Record Inflation
2.) Job security due to future EV production requiring less workers.
So the UAW votes Blue because, well, they’re told they have to just like a certain race has to vote blue or they ain’t black! C’mon man!! Voting blue caused record inflation and the premature push for EV’s!!! So they are striking in protest of how they voted, but they can’t see the forrest for all the trees!!😂 Can’t make this up people!!
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2 words…laughing out loud
Ford, GM and Stellantis should join together and shut all their manufacturing down. Make one proposal to UAW. Number one fire Fain and refuse back pay if stoppage is longer than 2 weeks and offer a one time only with a reasonable raise or they will move all manufacturing outside US and end Unions. Honda, Toyota, Nissan, Mercedes, VW group, BMW, Subaru, Hyundai and Kia will step up to fill the gap and they’re already here union free. End ridiculous union demands forever.