As reported on TPS earlier this week, the United Auto Workers and Detroit's Big Three automakers have now all reached tentative agreement on new worker contracts.
Finalizing these agreements is the next step to resuming normal production for the automotive industry. On Tuesday, MEMA Original Equipment Suppliers stated it "congratulates the UAW, Ford, GM, and Stellantis on reaching tentative agreements to end the ongoing strike. The MEMA supplier community looks forward to getting back to work as quickly as possible."
[RELATED: Assessing the impact of UAW strikes on industry operations]
MEMA stated "the strike significantly impacted the supplier community with almost 40% of the surveyed suppliers reporting some layoffs during the strike period. We expect the ramp up of the Detroit Three OEM facilities to progress over the coming weeks, as the supply chain rehires employees and rebuilds inventories through the entire value chain. Even as the suppliers return to work, financial concerns over the smaller and lower-tiered suppliers continue to be a significant issue for the overall industry."
As the Vehicle Suppliers Association, MEMA stated it will continue to lead the effort advocating for suppliers’ financial needs and strengthening the future workforce of the supplier community. "We welcome our industry partners’ engagement to help meet these challenges and ensure domestic auto manufacturing remains a vital part of the U.S. infrastructure for years to come," MEMA said.
