The Original Equipment Suppliers Association, a non-profit that advocates on behalf of hundreds of American automotive supply companies, says more than 100 of GM’s suppliers have implemented “some form of temporary layoffs” due to the ongoing UAW strike.
This has result in nearly 12,000 salaried and hourly employees being served temporary layoff notices, according to a CNBC report. That doesn’t include the thousands of workers that have been temporary laid off at GM suppliers in Canada and Mexico, either.
The UAW strike began on September 16, when just under 50,000 of GM’s unionized American employees walked off the job demanding increased wages and profit sharing cheques as part of their new four-year contract with the automaker, among other concessions.
OESA would not say which U.S. supplier has been forced to enact the most temporary layoffs, however CNBC says stock of American Axle, a Detroit-based manufacturer of automotive drivetrain components, has been hit the hardest by the UAW strike, with shares plummeting more than 22% since the the strike began.
In a statement, OESA CEO Julie Fream said a current shortage of skilled trades workers in the U.S. could cause those employees who have been temporarily laid off to seek employment elsewhere while the strike persists. This could result in suppliers struggling to ramp their production lines back up, causing a parts shortage that would ultimately hurt GM and the American automotive industry.
GM allegedly sent a second contract proposal to the UAW on Monday, which the union had yet to respond to by Monday night. The details of the proposal are private.
Even if the UAW were to accept the contract, though, union members would still have to vote to ratify the deal. If they deal is rejected, the strike could go on. They would also have the option of returning to work while the deals of the contract were hashed out.
The union rejected a previous offer tabled by GM, as it did not include plans that would keep the Detroit-Hamtramck plant in Michigan open and the re-opening of Lordstown Assembly in Ohio. The union will not accept a contract that does not include new products or work for the two plants, it is believed.