The threat of an extended strike by American autoworkers to back demands in contract talks with the Detroit Big Three has auto part suppliers in Ontario preparing for potential layoffs to manage the production downturn
On Monday, United Auto Workers (UAW) president Shawn Fain said in a video released by the union on social media more workers would take to the picket lines if major progress wasn’t made by noon on Friday
“We’re going to keep hitting the company where we need to, when we need to, and we’re not going to keep waiting around forever while they drag this out,” said Fain, speaking over dramatic music cut with scenes of striking workers
About 13,000 union members are picketing three plants, one of each of the major U.S. automakers: Ford, General Motorsand Stellantis
Automotive Parts Manufacturers’ Association (APMA) head, Flavio Volpe, said a larger and extended strike spells concern for suppliers in Ontario and Windsor-Essex as the strikes focus on the U.S. Midwest — and could even match the disruption caused by the blockade of the Ambassador Bridge in Feb. 2022 that prompted the City of Windsor to declare a state of emergency
“It’s a slow burn right now that could turn into a quick burn if the strike was expanded to ten plants for a week’s time,” said Flavio Volpe, the president of the APMA. “We would see a similar disruption that we did to the blockade.”
The six-day blockade by those sympathizing with the so-called Freedom Convoy, occupying downtown Ottawa, caused an estimated direct loss of nearly $300 million to the auto industry by blocking trade at the Ambassador Bridge
The crossing sees more than $320 million worth of total goods cross the border every day, according to the Ambassador Bridge ompany
“What we saw in the blockade, we saw dozens of plant [disruptions] then cascade into dozens and dozens of part supplier plant [disruptions]; we’re not there yet. I think that the UAW leadership is a little bit smarter than the people who stood on the Ambassador Bridge because they’ve got more at stake,” said Volpe
In Volpe’s view, there is a game of chess being played in current contract talks and believes the union is managing its exposure to U.S. part suppliers
“I think they’re acutely aware of that fact that if they widen the strike or deepen it at very specific locations, it’s going to affect U.S.-based auto parts supply and some of their members there,” said Volpe
“Even though they’ve stood up against all three companies at the same time they’ve done it in limited amounts of plants,” said Volpe. “If they decide to rotate these strikes to different plants, it will reduce the pressure on the automotive suppliers while keeping focus strictly on the carmakers.”
Already though at the dozens of plants in Windsor-Essex impacted by the labour action in the American auto sector, Volpe says there are concerns that in just a few days, the companies supplying those picketed plants could see schedule changes or potential layoffs
“We’re seeing anecdotes,” said Volpe. “Everybody’s a little bit on edge.”
While temporary plant shutdowns haven’t yet been announced in Canada’s auto supply chain, Volpe stressed any temporary closure would likely require a further three to four days to get back to full production schedules
Ford, General Motors and Stellantis have all said they hope to end the strike by settling agreements with the union and indicate they continue to bargain in good faith to reach an agreement as quickly as possible; however, the automakers have warned the strike could force the company to layoff staff
GM said Monday the strike in Wentzville, near St. Louis, could force the company to idle an assembly plant in Kansas City while supplier, United States Steel Corp. has already said it will temporarily idle one of its blast furnaces in Granite City, Illinois — which employs about 1,450 workers — due to reduced demand for steel
