(Scypre.com) – The ongoing strike led by the United Auto Workers (UAW) against major automotive manufacturers, known as the Big Three, has been causing a surge in layoffs. The companies are grappling with disruptions in the supply chain and striving to control expenses during the negotiation process.
This UAW strike, now in its seventh day, marks the first instance where the union has simultaneously targeted each of the Big Three automakers in Detroit – Ford, GM, and Stellantis. The strike initially began with approximately 12,700 workers across three facilities operated by the Big Three, who walked off the job last Friday.
Consequently, this strike has resulted in layoffs and halts in work at these facilities and along the automakers’ supply chains. UAW President Shawn Fain has issued a warning, stating that additional strikes will be announced if the ongoing negotiations do not show sufficient progress by Friday.
The approach employed by UAW leaders is referred to as a “stand-up strike,” where specific local groups are asked to strike at their respective facilities. This strategy grants flexibility to escalate the strike incrementally, potentially leading to a nationwide strike if negotiations fail to make satisfactory progress according to the union. Moreover, it aims to make it harder for the auto companies to predict the union’s next steps.
As of the time leading up to this publication, the UAW has not provided a comment on the matter.
Here is a summary of the impact on the Big Three automakers and their suppliers regarding layoffs and work stoppages up to Wednesday:
Ford: On the day the strike commenced (September 15), around 600 employees at Ford Michigan Assembly Plant were notified not to report to work. This facility in Wayne, Michigan, employs approximately 4,900 workers, mainly hourly employees, and produces Ford Ranger light trucks and Ford Bronco SUVs. Ford is working on responsible contingency plans for potential work stoppages to ensure parts shipment and maintain essential services.
GM: The UAW strike affected two General Motors facilities up to Wednesday. The Wentzville Assembly plant in Missouri, with 4,114 employees, and the Fairfax Assembly & Stamping plant in Kansas, with approximately 2,000 represented team members, were idled due to a shortage of critical stampings caused by the strike at Wentzville Assembly. Vehicles like Chevrolet Colorado and Express, GMC Canyon, and Savana are produced at Wentzville Assembly, while Fairfax Assembly builds models like Cadillac XT4 and Chevrolet Malibu.
Stellantis: Stellantis, the parent company of brands like Chrysler, Dodge, Fiat, Jeep, and Ram, announced a temporary layoff of 68 employees at the Toledo Machining Plant in Perrysburg, Ohio, due to storage constraints. They anticipate similar actions affecting around 300 employees at Kokomo Transmission and Kokomo Casting in Kokomo, Indiana. These facilities produce various automotive components for Stellantis.
Suppliers: U.S. Steel temporarily idled blast furnace “B” at Granite City Works in Illinois as part of its risk mitigation plan due to the autoworkers’ strike. This facility produces sheet steel products for construction, container, piping, tubing, and service center industries. The decision was made to balance melt capacity with the order book, reallocating volumes to other domestic facilities to meet customer demand efficiently.