Ramp up in U.S. auto strike expected to affect Canadian parts producers

TORONTO –

Autoworkers within the U.S. ramped up their strike Friday in a transfer that is anticipated to have knock-on results for Canadian elements producers.

The expanded strike noticed United Auto Worker members stroll out at 38 General Motors and Stellantis parts-distribution centres in 20 states, including 5,600 employees to the 13,000 who started strikes final week at three Ford, GM and Stellantis meeting crops.

“It spreads the pain around to a new level,” stated Sam Fiorani, vice-president of worldwide automobile forecasting at AutoForecast Solutions.

The addition of distribution centres enhance the possibility of disrupting the provision chain and affecting Canadian elements suppliers, he stated.

“As the days go by, parts suppliers are more and more hampered, and it gets worse as the parts suppliers themselves are smaller. So the smaller tier two and tier three suppliers will really get hurt.”

Canadian corporations working within the U.S. have already been affected by the strike.

Aurora, Ont.-based Magna International Inc. confirmed that LM Manufacturing, a three way partnership they personal 49 per cent of, has briefly laid off about 650 staff as a result of the plant provides seats to a Ford Bronco plant that has been shut down.

Ford nonetheless was spared from the expanded strike on Friday as UAW president Shawn Fain says the union has had progress in negotiations with the corporate.

In Canada, Ford averted a strike by reaching a tentative take care of Unifor on Tuesday that members will vote on this weekend with outcomes anticipated on Sunday.

Unifor nationwide president Lana Payne stated the settlement, anticipated to set a blueprint for contract negotiations with GM and Stellantis, addresses key points corresponding to wages, pensions and the electrical automobile transition.

This report by The Canadian Press was first printed Sept. 22, 2023.