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Weight of the UAW strike begins to crush auto suppliers, force large layoffs

Posted at 5:21 PM, Oct 18, 2023
and last updated 2023-10-18 17:21:14-04

STERLING HEIGHTS, Mich. (WXYZ) — Auto suppliers are beginning to be crushed under the growing weight of the United Auto Workers strike.

According to MEMA, The Vehicle Suppliers Association, layoffs have increased by about 10% week-over-week with now 39% of members having to lay off employees.

Citic Dicastal North America in Sterling Heights is unfortunately one of those suppliers.

Our team interviewed the President of Citic Dicastal, Dale Hadel at the beginning and end of September. At that time the supplier had made no layoffs, now in week five of the UAW strike, things have changed.

"We’ve had to lay off about 20% of our people in this location specifically," said Hadel at their Sterling Heights shipping dock.

On the dock floor our team was shown stacks of bins that are labeled to go to the Ford Kentucky truck plant, now with the Ford plant on strike they're just sitting.

"It’s been quite tumultuous, to be honest with you," said Hadel.

Executive Director of MICHauto Glenn Stevens told 7 Action News the pain will trickle down to most all Michiganders.

"Anywhere from 7 to 10 jobs are directly linked to each one of those assembly plant jobs or OEM jobs," said Stevens. "So this ripple effect continues to grow anytime there’s a work stoppage."

An additional factor that Hadel said makes the current environment especially frustrating is the uncertainty of not knowing where or when another auto plant may strike.

The Anderson Economic Group posted research saying that suppliers have lost $1.6 billion from the strike.

As it wages on, suppliers are left in the dark, doing everything they can to keep employees, and hope for a resolution.