UAW strike leading to layoffs among suppliers

The UAW strike is having downstream effects
Supplier trade group warns it is conducting layoffs
The group is asking the Biden admin for aid

Updated: Oct 5, 2023 / 12:48 PM CDT

FILE – Members of the United Auto Workers strike outside of a John Deere plant, Wednesday, Oct. 20, 2021, in Ankeny, Iowa. The farm equipment manufacturer reached a tentative labor agreement Saturday, Oct. 30, with the United Auto Workers union. But a UAW strike that began Oct. 14 will continue — and details of the proposed contract will not be released — while workers study the terms of the agreement in advance of a vote. (AP Photo/Charlie Neibergall, File)

(NewsNation) — As the UAW’s strike against the Big Three continues to expand, some of the nation’s auto suppliers are beginning to feel the pinch.

That’s the conclusion of a new survey by the Motor & Equipment Manufacturers Association (MEMA), a trade group for auto suppliers.

They found 30% of their members said they have laid off some of their workers as a consequence of the strike. Upwards of 60% of their members said they expect to begin laying off workers in mid-October.

In a letter to President Biden written late last month, MEMA’s President and CEO Bill Long warned “the strike has already forced layoffs, furloughs, and shutdowns at vehicle supplier locations.”

Long asked Biden to consider using the Small Business Administration to aid auto suppliers to help them weather the strike.

“We urge you to act now to support the vehicle supplier community,” he said in the letter.