Ford Motor Co. announced on Wednesday that it will lay off an additional 400 employees in the Detroit area due to the ongoing strike initiated by the United Auto Workers (UAW).
The company detailed that 350 of the affected workers hail from the Livonia Transmission plant, while the remaining 50 are from the Sterling Axle plant. Both facilities supply essential parts for the Ford Explorer and Lincoln Aviator, produced at Chicago Assembly. This location saw its workers join the UAW strike on Sept. 29. Cumulatively, the strike, which commenced on Sept. 15, has led Ford to lay off 1,330 workers and halted production at the company’s Michigan Assembly Plant.
This development follows Ford’s recent public disclosure of its updated offer to the union. The proposal reportedly enhances wage gains and other associated benefits for the workers.
According to Crains Detroit, an anonymous source acquainted with the ongoing talks reported that negotiations are making progress among all three concerned companies. The individual mentioned, “serious movement” since late last week, indicating a possible shift in the dialogue’s intensity.
General Motors (GM) shared on Monday that the UAW provided its first comprehensive counter offer in 11 days. As of now, GM’s response to this counteroffer remains unclear. An update regarding the status of discussions is anticipated from the UAW on Friday. There is ongoing speculation about the union’s plan to possibly expand the strike, given its track record over the past two Fridays.
A recent survey, conducted on Sept. 29 by MEMA, The Vehicle Suppliers Association, which represents automotive parts suppliers, revealed that roughly one-third of suppliers have been compelled to lay off employees as a result of the UAW strike against the Detroit Three automakers.
Further details from the survey disclose:
- About 30% of surveyed vehicle suppliers have executed layoffs because of the strike.
- Over 60% of the suppliers anticipate initiating layoffs by mid-October.
- Roughly 70% of suppliers are apprehensive about the financial stability of their smaller counterparts.
- Over half of the halted suppliers stated that they would require at least a week to resume production to pre-strike levels.
To put the scale of these disruptions into perspective, GM has already laid off over 2,000 workers due to the strike impacting its Wentzville Assembly plant in Missouri and Lansing Delta Township Assembly plant. Additionally, Ford has had to let go of more than 1,000 employees linked to the strike.
The UAW initiated a strike against the Detroit Three automakers on the eve of Sept. 14. This action was taken as their existing contract lapsed, and a preliminary agreement with the Detroit Three was not achieved. The strike is now into its third week, marking its 20th day.
About Post Author
