WAYNE, Mich. (NewsNation) — The impact of the United Auto Workers strike against Detroit’s Big Three is already spreading, affecting the Supply Chain and resulting in layoffs as it enters its sixth day.
At Ford’s Wayne, Michigan assembly plant, one of three similar facilities in the Midwest where nearly 13,000 UAW workers are participating in the strike, the situation is unfolding.
However, the work stoppage is now reverberating through the Automotive Supply Chain, leading to temporary layoffs for non-striking workers. Specifically, 600 non-striking employees at the plant are responsible for assembling the Ford Bronco.
In a statement, Ford said, “This layoff is a consequence of the strike,” explaining it’s due to the fact that the components produced by these employees require a protective process called “e-coating,” and the department is currently on strike
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Additionally, workers at this facility manufacture parts, such as dashboards, for other plants building various Ford vehicles. These temporary layoffs at the plants are just one of the many consequences stemming from the UAW’s work stoppage.
Suppliers are now feeling the impact of the strike.
About 90 miles north of Detroit, CIE Newcor is forced to lay off nearly 300 employees at four different locations due to the UAW strike, with an anticipated duration of about one month.
However, the ripple effects extend beyond suppliers. Ford warns that it could take up to a year or two to fully restore the automotive supply chain, affecting both suppliers and manufacturers. The COO who oversees 44 car dealerships in the Midwest highlighted that these layoffs are adding to the challenges faced by an already strained industry.
The auto industry has grappled with significant supply chain disruptions in recent years. These disruptions began with the onset of the COVID-19 pandemic, leading to shortages of parts like microchips, among others. These issues have a ripple effect, impacting dealerships and consumers, who face increased costs and extended wait times for new vehicles or replacement parts.
To provide some context, it’s important to realize that each car consists of approximately 30,000 parts. As the UAW strike persists, the automotive supply chain becomes increasingly intricate and disrupted for all involved.
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One of the key demands of the union is a 40% pay increase for auto workers, which remains a contentious issue in the negotiations.
Meanwhile, the Biden administration reversed a plan to send acting Labor Secretary Julie Su and senior adviser Gene Sperling to Detroit this week to meet with both sides, according to a White House official. Last week, President Joe Biden publicly backed the UAW and said the officials could play a positive role.
UAW President Shawn Fain had discounted the need for help from Washington, saying “This battle is not about the president,” and some Democrats opposed the White House involvement.
A campaign advisor for former President Donald Trump confirmed he will visit Michigan next week. He plans to deliver a speech in support of the workers, coinciding with the same day as the next Republican primary debate.
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