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Possible UAW strike could have effects on local supply chains

As the deadline for contract negotiations approaches, employees in the supply chain industry are growing concerned with the effects a strike could have
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Posted at 9:35 PM, Sep 13, 2023
and last updated 2023-09-13 21:35:56-04
  • As the September 15th deadline approaches for contract negotiations between the big 3 automakers and the UAW, employees are preparing for the possibility of a strike
  • Workers in the supply chain industry will also be affected in the event of a strike
  • If a long term strike was to happen, vehicle production would fall 30%
  • MSU Eli Broad Professor of Supply Chain Management, Jason Miller, said the supply chain industry could be faced with layoffs in the event of a long term strike

(The following is a transcription of the full broadcast story)

In the event of a UAW strike.. Auto workers won't be the only ones feeling the effects.

Those in the supply chain industry felt a pinch in 2019 through the UAW’s 40 day strike

But this time.... could be different

"If that were to happen again we would be looking at domestic production of motor vehicles and parts falling upwards of 30% so essentially 3 times worse than we saw previously" said Jason Miller, MSU Eli Broad Professor of Supply Chain Management

As the automotive industry has taken steps to fully recover from the pandemic and a national chip shortage that lasted through the end of 2022 ... Reduced output from a long term strike could affect workers across the board

"You not only have the loss of output at the assembly plant but you also have the loss of output from the facilities that are making the bodys and the plastics and the engines" said Jason Miller

In the event of a short term strike that would last a week or less... There wouldn't be many lasting impacts but if there's a more long term strike similar to 2019.... Jobs could be in danger

"The manufactures making parts for automakers who will be affected by the strike will certainly have to engage in layoffs, trucking companies who are providing services and hauling auto parts they would likely be forced to lay off drivers if there was this change in demand... You have warehouses being affected that are there to support manufacturing.. A lot of 3rd party logistics companies would be affected as well so this would cascade over" said Jason Miller

Needless to say.... Workers throughout the auto parts industry will have a close eye on contract negotiations as the deadline approaches

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