An automotive parts supplier in Michigan says it plans to lay off almost 300 people because of the United Auto Workers strike against Ford, General Motors and Stellantis.
CIE Newcor operates two plants in Michigan that manufacture shafts, pinions, gears and other parts for the Big Three Detroit auto makers.
The nearly 100-year-old company filed a Worker Adjustment and Retraining Notification with the state of Michigan on Thursday, hours before the United Auto Workers began its targeted strike against three factories in Michigan, Missouri and Ohio. A CIE Newcor spokesperson confirmed to Spectrum News that it had filed the paperwork but said there have been “no layoffs at the moment.”
In its WARN filing, the company said a temporary closing is possible and will be determined by the length of the UAW strike with layoffs expected to begin October 2.
ZF North America told the Detroit Free Press Monday that it has started to lay off workers at some of its plants because of the UAW strike. Headquartered in Germany with manufacturing sites in Michigan, ZF makes components for each of the eight vehicle models manufactured at the struck factories, including the Jeep Wrangler.
The specter of supplier layoffs comes on the heels of a 600-worker layoff at a Ford assembly plant in Michigan where the UAW is striking paint operations. General Motors said it is considering idling 2,000 workers at an assembly plant in Kansas that relies on materials from the Missouri plant where UAW workers are also striking.
While the supplier strikes remain limited for now, almost 5,000 companies make parts for the auto industry in the U.S., according to Dun & Bradstreet.
The UAW began striking the Detroit Auto makers on Friday after its four-year-old contract expired September 14 at 11:59 p.m. ET. The two sides had been negotiating since July, when UAW President Shawn Fain presented each of the car companies with a list of ten demands, including a 40% wage increase, cost-of-living adjustments, defined pension benefits for all workers, the right to strike over plant closures and more paid time off to be with families.
Ford and General Motors have offered a 20% wage increase. Stellantis has offered 21%.
On Monday, Fain told NPR the offers were “not enough.” After having “minimal conversations” with Ford and General Motors over the weekend, Fain met with Stellantis Monday, but no deal was reached. Fain plans to meet with Ford again late Monday.
Fain said it is “up to the companies” whether the UAW will expand its stand up strike to other plants. On Friday, 12,700 UAW workers walked out at a GM assembly facility in Wentzville, Mo.; a Ford assembly plent in Wayne, Mich.; and a Stellantis factory in Toledo, Ohio. Fain has asked his 150,000 union members to be ready to strike additional plants if called to do so.