The United Auto Workers (UAW) strike continues to have an impact beyond the union’s targeted facilities, including suppliers. Now, a recent survey indicates that suppliers are starting to lay off workers as a result of the ongoing strike. The UAW initially called for walkouts against all three of the Big Detroit automakers (GM, Ford, and Stellantis) following the expiration of previous labor contracts on September 14th.
According to a recent survey from MEMA, an organization that represents more than 1,000 U.S. OEM and aftermarket supplier members, nearly 30 percent of surveyed vehicle suppliers have laid off some direct employees as a result of the UAW strike.
The survey, conducted September 29th, also indicates that additional suppliers are expected to begin layoffs by mid-October, with more than 60 percent of MEMA members indicating new layoffs are just over the horizon. What’s more, 70 percent of vehicle suppliers have concerns about their sub-supplier’s ongoing financial viability, and more than 50 percent of idled suppliers indicate they will need at least one week to return production to levels seen prior to the strike.
MEMA indicates that it is now working with the Biden administration to hash out a plan to provide financial support to smaller suppliers generating less than $200 million in revenue, often Tier 2 and lower. In a release, MEMA states that the vehicle supply chain has also been impacted by a slowdown of commercial vehicle crossings at the U.S. / Mexico border.
The UAW has expanded its strike against the Big Detroit Three automakers twice since the initial walkouts in September. It’s estimated that 25,300 UAW members are currently striking across the Big Three. The UAW membership includes 146,000 workers for all three automakers, while MEMA states that vehicle suppliers employ over 900,000 workers.
GM recently submitted its sixth contract proposal to the UAW since negotiations began this past July. GM has also secured a $6 billion line of credit, possibly indicating anticipation of a long, drawn-out negotiation process.
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Comments
thats funny. they know the strike wont be indefinite but they are firing people after 2 weeks. yep you dont matter to them. you slave away for 30 years and then in 2 weeks they kick you out. then they will rehire somebody else disposable when they need it.
but so much hate when people stand up for job security and so forth.
They are firing people they are being laid off because of no work. You can’t make parts and pay for people if the company your supplying parts to doesn’t pay you. You also don’t want a bunch of parts laying around that could get damaged. UAW doesn’t care, the leaders still get paid. It will be bad only when the UAW can no longer pay the strikers…the companies seem to have planned for this. So lets see who can hold out the longest.
Suppliers might be the weak link.
The UAW cares nothing about collateral damage. It’s all about them. What goes around comes around. It may take a day or two but it will come back around.
Slave labor, they slaved for 30 years!..Who are you kidding ,went through the corvette factory didn’t see a single whip. Immaculate ,clean,airy.everyone smiling all new cars in the employee larking lot.To me it looks like greed for the top people.If they are concerned about high prices get on president and all the liberal congress men and ladies.stop drilling for oil go green,,,,,,take away your jobs and build more electric cars ,less labor you know
Watching all the current unions striking I would say the nurses striking is legit and the UAW are just greedy and whiners. The nurses and technicians have medical degrees and just want $25 hr. The UAW people are mostly high school dropouts and think they are worth a $100K and 7+ weeks of vacation and holidays!!! Come on man! A monkey could do most UAW jobs and probably better and paid in bananas!
Good job, unskilled like Ive been saying . They deserve nothing , they think there owed somthing
You see a lot from your mom’s basement. LOL !
So tax payers give the big 3 credits for us to use to buy the vehicle, the UAW strikes to get more money and benefits from the big 3, the big 3 dealers try to get the rebates out of our hands, the suppliers now need help with tin cup in hand from tax payers and oh yes for ICE vehicles too not just BEVs and I bet more so for ICE vehicles to continue to exist. Where is RR when ya need him?