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Those smaller suppliers have only recently recovered from the shocks of the Covid-19 pandemic and the resulting global shortage of semiconductors. Now, they're coming under pressure to increase their own workers' wages — in an environment where higher interest rates have made it more costly to borrow money — and staring down the threat of ongoing auto workers' strikes. Members of the United Auto Workers union picket outside the Michigan Assembly Plant in Wayne, Michigan, on Sept. 26, 2023. Supplier layoffsIn the face of prolonged strikes, some smaller suppliers are already cutting workers or announcing plans to do so. Michael B. Thomas | Getty ImagesAs of Tuesday, two additional Detroit-area auto suppliers had already filed notices of potential layoffs with the state of Michigan.
Persons: Bill Pugliano, Patrick T, Fallon, Dennis Devaney, Devaney, Joe Biden, Matthew Hatcher, MEMA, Biden, Michael B, Thomas, Mary Barra, We've Organizations: United Auto Workers, Getty, Ford Motor, General Motors, U.S . automakers, American Automotive, Council, UAW, Chrysler, Parts Distribution, AFP, GM, Ford, National Labor Relations Board, Equipment Manufacturers Association, White House, Plant, Small Business Administration, LM Manufacturing, Ford Bronco, Manufacturing, Canadian, Magna International, Union, General Motors Wentzville, CIE, Spain's CIE Automotive, Eagle Industries, CNBC, Publicly Locations: Auburn Hills , Michigan, Chrysler Los, Ontario , California, Detroit, Covid, Michigan, Wayne , Michigan, U.S, Wentzville , Missouri
Targeted, or bottleneck, strikes are an alternative to national actions in which the union only strikes select plants. Targeted strikes typically focus on key plants that can then cause other plants to cease production due to a lack of parts. They include initiating targeted strikes at select plants and then potentially increasing the number of strikes based on the status of the negotiations. "We will strike all three companies, a historic first, initially at a limited number of targeted locations that we will be announcing. While "historic," the targeted strikes could have unintended ripple effects.
Persons: Shawn Fain, Rebecca Cook, Fain, Dennis Devaney, Clark, Devaney, Plant, Jeffrey S, Kopp, Lardner, everything's, UAW hasn't, Ben Dictor, Dictor Organizations: United Auto Workers, Sterling Heights Assembly, Reuters DETROIT, Ford, General Motors, UAW, NLRB, GM, Exxon Mobil, Foley, Detroit, National Labor Relations Board Locations: Sterling Heights, Sterling Heights , Michigan, U.S, Texas, Michigan
Unlike prior union leaders, Fain is attempting to negotiate with all three automakers at once, refusing to select a "target" company to focus on while extending deals at the others. He's also been far more confrontational with the automakers compared to previous union leaders, at times launching personal attacks on executives. "I think there's a reasonable chance they strike Stellantis first and then give a couple more days for Ford and GM to give a better offer." The union could use that work stoppage as a warning to GM and Ford to finalize their deals, he said. United Auto Workers members on strike picket outside General Motors' Detroit-Hamtramck Assembly plant on Sept. 25, 2019 in Detroit.
Persons: Michael Wayland, Shawn Fain, He's, he's, Fain, , Wheaton, Biden, Gene Sperling, Morgan Stanley, That's, aren't, I've, Dennis Devaney, Clark Organizations: United Auto Workers, CNBC DETROIT – United Auto Workers, Detroit, General Motors, Ford Motor, GM, National Labor Relations Board, UAW, Worker Institute, Cornell University, Ford, White, Wall, Industry, NLRB, Hamtramck Assembly, CNBC Locations: Detroit, Stellantis, U.S, Hamtramck
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