Auto supply chain overview:
- Who: The three major automakers are warning that the expanded United Auto Workers’ strike will affect the “fragile” auto supply chain.
- Why: Approximately 25,000 UAW members have reportedly joined the UAW strike, affecting many of the automakers’ facilities.
- Where: The UAW strike allegedly affects auto supply chain issues nationwide.
Ford, General Motors, and Stellantis are warning that the United Auto Workers’ strike may affect the “fragile” auto supply chain due to the union’s work stoppages at major facilities, Law360 reports.
The United Auto Workers recently announced that it would expand its UAW strike against GM and Stellantis (formerly Chrysler) at 38 locations in 20 states, adding an additional 5,600 auto workers to the nearly 13,000 auto workers already on strike.
The UAW strike expanded to include an additional 7,000 members at GM’s Lansing Delta Township Assembly facility in Michigan and Ford’s Chicago Assembly Plant in Illinois. Because the UAW reportedly made progress in negotiations with Stellantis, the automaker was not subjected to additional walkouts at the time.
“Sadly, despite our willingness to bargain, Ford and GM have refused to make meaningful progress at the table,” UAW President Shawn Fain told members Sept. 29 on Facebook Live.
“To be clear: Negotiations haven’t broken down,” he said. “We’re still talking with all three companies, and I’m still very hopeful that we can reach a deal that reflects the incredible sacrifices and contributions our members have made over the last decade.”
As of Sept. 29, approximately 25,000 UAW members were on strike, according to Law360. Ford claims that “there is still time to reach an agreement and avert disaster, but not much time given the fragile supply base.”
Automaker claims UAW strike involves ‘theatrics’ instead of intent to reach agreement
Ford says that the UAW strike demands would cost the auto company billions more than the billions of dollars it has already offered, and would allegedly have “devastating implications for Ford’s business and the company’s ability to protect good-paying union jobs going forward.”
GM Chair and CEO Mary Barra accused the UAW leadership of “upping the rhetoric and the theatrics,” making it “clear that there is no real intent to get to an agreement.” She says that GM has been available to bargain on behalf of the UAW members since negotiations started in the summer.
“They’ve demanded a record contract and that’s exactly what we’ve offered for weeks now: a historic contract with record wage increases, record job security and world-class health care,” Barra said.
Do you think the UAW strike is to blame for increased auto supply chain issues? Join the discussion in the comments!
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One thought on Big Three automakers warn UAW strike will affect fragile supply chain
The UAW demands are unreasonable especially considering the current economic situation. The only thing this strike is doing is making things worse which is what most strikes do. Most consumers won’t be shelling out more money to purchase already over expensive vehicles.