Stellantis says it's anticipating 350 temporary layoffs due to UAW strike
(FOX 2) - As the autoworker union's strike against the Detroit automakers extends to nearly a week, the ripple effects are beginning to grow to other sectors of the car economy.
Due to UAW strike actions, Stellantis says it has temporarily laid off 68 employees at a machining plant in Ohio and will likely need to lay off an estimated 300 other workers at factories in Indiana.
When the UAW's first plants it announced would be effected by failed negotiations between them and Ford, General Motors, and Stellantis included a Toledo plant that makes the Jeep. It also hit the Wayne truck facility where Ford makes the Bronco and GM plant in Wentzville, Missouri which manufactures SUVs.
"As a consequence of the strike action at the Toledo Assembly Complex (TAC), Stellantis confirms that it will immediately temporarily layoff 68 employees at the Toledo Machining Plant in Perrysburg, Ohio, due to storage constraints," it said in a statement.
MORE: Tensions high as UAW deadline for widened strike inches near
"All other production at this facility continues. In addition, we anticipate similar actions at Kokomo Transmission and Kokomo Casting in Kokomo, Indiana, affecting an estimated 300 employees at these two facilities. Stellantis continues to closely monitor the impact of the UAW strike action on our manufacturing operations."
No on Day 6 of the strike, Stellantis made the most recent counteroffer to the UAW, offering a 20% wage increase and lump sum payments to offset the cost of inflation. However, the UAW has shot down that offer, saying it was asking for a 36% wage increase.
Ripple effect of UAW strike with Big Three impacting small auto parts suppliers
"They’re fragile right now because they’ve just recovered from Covid barely, the chip crisis," she said. "They’ve had to deal with wage increases, transportation increases, utility increases, raw material increases, the cost of money."
Among the ripples now being felt are small auto parts suppliers like at mid-Michigan supplier CIE Newcor. Ford has also said it temporarily laid off workers due to workers walking off the line at the Wayne plant.
Without "serious progress" in negotiations, the UAW president said they would announce another series of strikes against the automakers.