UAW Strike Wears On: Forced OEM and Supplier Layoffs Compound Impact

As the UAW’s strike against Ford, General Motors and Stellantis wears on for a fourth week, some relief was delivered today in news of progress made on negotiations. No action was taken today by UAW President Shawn Fain to escalate the scope of the strike as he has the last two weeks. This is welcome news but make no mistake — without resolution, we will continue to see layoffs at the OEMs and suppliers, and a ripple effect throughout businesses and communities across the state.

We are directly and indirectly aware that the OEMs have been forced to lay off several thousand additional employees as a direct result of the strike, joining tens of thousands of employees laid off or facing layoffs in the supply chain. A survey of 80 suppliers by the MEMA Original Equipment Suppliers on 9/29/23 reflected that 30 percent of those suppliers have already launched layoffs and 60 percent will commence layoffs by mid-October.

The adverse impact of the strike is increasingly urgent and frightening with each passing week. As I’ve said before, the impact is felt at the personal, entity and community level.   

I am encouraged by reports of progress made on counteroffers from the OEMs, the details of which provide the basis for a historic settlement with the UAW while preserving the future vitality of our domestic automotive industry. I commend the OEMs who have continued to work diligently despite little in the way of counteroffers coming from the UAW.   

MMA continues to advocate for a fair and reasonable settlement as we attempt to share the broad impact of an ongoing strike with public, private and media stakeholders.

Walsh: Economy will take a major hit if UAW strikes continue - The Detroit News  

The Detroit News 10/1/23 (Subscription) 

As the United Auto Workers union escalates for the second time its strike on Detroit’s Big Three automakers, I take pause to consider the gravity of the situation for our automotive sector and legacy, our state and its communities, and families whose lives and livelihoods are tied to Michigan's economically vital automotive industry… 

Governor Scrums on Auto Strike 

MIRS Capitol Capsule 10/4/23 (Subscription) 

We’re increasingly seeing the ripple effects in terms of layoffs down the supply chain. So from tool and die shops all over the state, they are getting layoff notices and other bigger suppliers are getting layoff notices. The number of people being laid off is beginning to exceed the number of people in the union… 

For ease of reference, I’ve again included a link to information available that may assist members in addressing potential layoffs as the strike continues. Please see the information contained in this link for helpful information you might share with those employees in your organizations that are adversely affected by continuation of the UAW strike.

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John J. WalshJohn J. Walsh
MMA President & CEO
Call 517-487-8550