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Auto industry sees thousands of temporary layoffs across US as UAW strike continues

Posted at 11:27 PM, Sep 20, 2023
and last updated 2023-09-20 23:29:48-04

WAYNE, Mich. (WXYZ) — As auto industry positions across the country are forced into temporary layoffs, the growing impact of the United Auto Workers strike is leaving a major dent on the economy.

Auto suppliers are confirming hundreds of more jobs are being temporarily laid off as a result of the UAW strike that could grow even bigger on Friday. Layoffs in the industry are up to about 3,000 across the U.S. as of Wednesday.

On the picket line in Wayne outside the plant where Ford builds its popular Bronco and Ranger models, striking workers are focused on better pay, benefits, eliminating tiers and restoring pensions.

Worker Justin McWherter is thinking of the ripple effect on auto suppliers now making layoffs.

“It’s terrible for the economy and goes to show how much the Big Three connects to the outer-umbrella of the economy,” McWherter said.

In Southwest Detroit where Ford Bronco seats are made, we’ve confirmed 650 employees have been temporarily laid off at a joint venture between LAN Manufacturing and Magna.

Across the country, General Motors has announced 2,000 layoffs at Fairfax Assembly in Kansas City, Kansas, due to a parts shortage and in Granite City, Illinois.

U.S. Steel added 350 more layoffs.

“I would like to see fair wages for everybody. Most of these employees live paycheck to paycheck and I don’t think that’s fair,” McWherter said.

All three automakers offered raises of roughly 20% and other counteroffers while pledging to negotiate in good faith. But nonetheless, come Friday without more progress, the UAW has pledged to extend its Stand Up Strike as gates remain locked in Southwest Detroit.

Idle trailers are collecting more dust as these workers collect $500 a week in union strike pay.

“If we have to strike more, close more, then we’ll do that,” another UAW member said.

“I’d like to see us get back to work so those other suppliers get back to work and uplift this economy,” McWherter said.

The Bronco, which is a top seller for Ford, was a key part of the strike strategy. Experts say the strategy could include mid-size SUVs next.