UAW Strike Starting To Have Big Impacts On Steel, Other Suppliers

On Friday, October 6, United Auto Workers (UAW) President Shawn Fain said that, for the time being, the union would not expand its strike against U.S. automakers since contract talks have made “significant progress.” Specifically, General Motors made a major concession by bringing electric vehicle battery production under its master agreement with the UAW.

The strike, which so far involves more than 25,000 workers at plants mostly in the Midwest and Michigan, is taking a toll on the North American economy, including on the industrial metals sector.

Last week, The Wall Street Journal examined how the walkout has affected the steel industry. The Journal reported, “Steel purchases by automotive-related users began slowing during the summer as a strike by the United Auto Workers union appeared more likely …” Steel producers also have started enacting temporary layoffs because of the strike.

According to The Washington Post, more than 3,000 automaker supplier company employees have been affected so far since nearly 30 percent of its suppliers have resorted to layoffs. More than 60 percent of suppliers said they expected to begin layoffs this month. According to the Anderson Economic Group, auto industry suppliers lost about $1.3 billion in the first two weeks of the strike. Automakers themselves suffered losses totaling an estimated $1.1 billion.