Workers at auto industry supply companies are facing some potentially major impacts as the United Auto Workers, along with Detroit’s “Big Three”, are still in contract negotiations that could result in a strike.
The two sides have been working to reach an agreement since July.
Brian Rothenberg, a former UAW spokesman, said that a potential strike could target specific sectors of the automotive manufacturing industry, causing huge profit losses.
“By tonight, it looks like there’s a leak coming [the negotiations] If they’re going to strike, they’re going to attack key products that will penetrate deep into the company, but not attack everyone in the union,” Rothenberg told Scripps News. “This is unprecedented. It will be, according to what I’m reading, it will be all three companies. To do this they will choose strategic plants. “This will still impact some suppliers.”
The UAW is demanding the elimination of wage levels and the rollback of retiree benefits such as health care and pensions. In the talks, the union has demanded a 32-hour work week and a 46% wage increase for workers.
All three automakers have returned counter-offers to the union’s demands, but none have been accepted, Scripps News Detroit reports.
“It’s a very different conversation here,” Rothenberg said. “Usually everything that’s going on right now is behind closed doors.” “By the beginning of this week it was all public, with both the company and the union bargaining publicly,” he said.
Employees at local auto supply companies said they were preparing to cut their budgets in the event of a UAW strike.