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Home » Transportation & Distribution » UAW Strike Forcing Some Suppliers, Automakers to Make Layoffs

UAW Strike Forcing Some Suppliers, Automakers to Make Layoffs

A RED GMC TRUCK IS PARKED IN FRONT OF A UAW OFFICE UNDER A CLOUDY BLUE SKY.

Photo: iStock.com/jetcityimage

October 24, 2023
SupplyChainBrain

The UAW strike, which is entering its sixth week, is having an effect on the wider automotive supply chain, according to the Wall Street Journal.

Roughly 40% of suppliers said they have had to lay off some employees since the work stoppages started, according to a survey from the Motor and Equipment Manufacturers Association (MEMA), an industry group representing more than 1,000 companies that manufacture car parts and systems. That figure is expected to grow by the end of October 2023.

“It’s difficult for all of us, and we’re praying it doesn’t go on much longer,” said Sam Pack, the owner of Sam Pack Auto Group in Texas.

The strike at Ford alone has so far resulted in more than 13,000 layoffs at nearly 90 supplier sites, said Liz Door, the company’s supply-chain chief. The WSJ said most suppliers have weathered the strike because cash has continued to flow in from prior work, which tends to be paid a month-and-a-half or two months after the shipment was sent.

Meanwhile, about 6,600 GM, Ford and Stellantis workers have been temporarily laid off because of the strike, focused on factories in Kentucky, Michigan, Ohio and Missouri. The UAW expanded its walkouts October 23 to target a 6,800-worker factory in suburban Detroit. The Stellantis-owned plant is the organization’s largest U.S. facility and one of its most profitable venues.

The UAW began striking against Ford, GM and Stellantis at plants in Missouri, Michigan and Ohio September 15. The UAW strikes began at General Motors’ Wentzville, Missouri venue, where 3,600 UAW members are employed. Later, 3,300 workers walked out of Ford’s Wayne, Michigan plant as well as Stellantis’ Toledo, Ohio assembly complex, which employs about 5,800 UAW members.

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