The strike by auto workers in Detroit against major car companies is causing more problems as it continues for the sixth day. The strike has affected the supply chain, resulting in temporary layoffs for non-striking workers.
Ford stated that the layoffs are a direct result of the strike. The people on strike are those who are involved in a special protective process called ‘e-coating’ on some car parts, and since the department was currently on strike, it had an impact on their operations.
In one of the affected locations, Ford’s Wayne, Michigan assembly plant, 13,000 UAW workers are participating in the strike. However, there are also 600 employees who are not on strike but can’t work because they make Ford Broncos, and their part of the work needs a special process that is currently unavailable because of the strike.
The consequences of this strike go beyond just suppliers. Ford has issued a warning that the complete restoration of the automotive supply chain can take more than a year or even two, impacting both suppliers and manufacturers.
One of the primary demands made by the union is a 40 per cent wage increase for automotive workers, a contentious issue in the ongoing negotiations.