Home » Impact of U.S. Auto Workers’ Strike Spreads to Auto Suppliers

Impact of U.S. Auto Workers’ Strike Spreads to Auto Suppliers

U.S. auto suppliers are struggling and have started layoff warnings after being hit hard by UAW’s strikes against the Big Three.

U.S. auto supplier Eagle Industries Inc. has announced that it may need to temporarily lay off 171 employees in production and administration out of 230 at a plant in Wixom in the northwestern suburbs of Detroit “as a result of unforeseen business circumstances.”

In a document filed with the state of Michigan, the company said that the estimated number of workers is subject to change “due to evolving business circumstances,” as the United Auto Workers (UAW) strike against the Big Three U.S. automakers entered the 11th day, the Detroit News reported on Monday.

The company produces foam products for the automotive industry and others with products used in parts for vehicle doors, trim and other areas to reduce noise in the vehicle and help prevent injuries in the event of a collision. Authority identified that Eagle components had been used in Ford Motor Co. vehicles.

Besides Eagle Industries Inc., other auto suppliers have issued warnings as a result of the strike. The Big Three automakers themselves have laid off hundreds of workers at plants that make or use parts from plants where workers are on strike.

Negotiations between the UAW and General Motors Co. (GM), Ford Motor Co. and Stellantis NV. continued on Monday, ahead of U.S. President Joe Biden’s scheduled visit to Michigan on Tuesday and former President Donald Trump’s on Wednesday.

Ford’s proposals to the union include converting all current temporary employees with more than 90 days of experience to full-time, an “enhanced” profit-sharing formula that is extended to temporary workers, the right to strike over plant closures, income and health-care security for up to two years in the event of a layoff, and reinstated cost-of-living adjustments, the UAW said.

In a statement, GM characterized the focus of the company’s negotiators as “bargaining in good faith … to reach an agreement as quickly as possible that rewards our workforce and allows GM to succeed and thrive into the future.”

In Canada, the autoworker union Unifor is set to start contract talks with GM on Tuesday which cover approximately 4,300 workers, after finalizing its three-year contract with Ford.

Unlike the UAW, Unifor opted to negotiate only with one company at a time.