A new Mercedes supplier ZF UAW strike saw 190 workers walking off the job, causing a probable impact on the automaker’s SUVs and raising concerns more suppliers could be impacted.
Mercedes supplier ZF UAW strike
An Automotive News story states the Tuscaloosa, Ala., plant, which builds front and rear axles for Mercedes-Benz vehicles, went on strike at 5 a.m. local time.
Those vehicles impacted include the GLE, GLS, EQE and EQS.
According to a Tweet from the UAW, the core issues for the workers included wages, a tiered-wage structure as well as health-care coverage.
BREAKING: 190 workers at ZF in Tuscaloosa, Alabama are now ON STRIKE for a fair contract. These members of UAW Local 2083 (@uawregion8) supply front axels to Mercedes, and have been fighting for a fair contract that ends tiers, raises wages, and provides decent healthcare.…
— UAW (@UAW) September 20, 2023
ZF spokesperson Tony Sapienza told Auto News the UAW-represented workers at the Tuscaloosa plant elected to go on strike but said the plant would continue to run.
It is worth noting, ZF also builds the transmissions for Ram 1500 trucks as well as many other vehicles.
Not part of UAW Detroit 3 strike?
It is not immediately clear if the ZF workers elected to strike due to the recent UAW Detroit 3 strike, however, it is hard not to draw a connection.
The UAW Detroit 3 strike is set to grow with a Friday noon deadline for GM, Ford and Stellantis to make “serious progress” in negotiations according to the UAW.
Other Automotive News stories suggest suppliers are watching the UAW strike closely to see what impact it will have on their operations. Many lower Tier 2 and Tier 3 parts makers are saying they are at risk of going under if the strike persists for an extended period of time after years of higher costs and uneven new-vehicle production.
The bottom line
As we previously stated, the UAW strike will have far-reaching impacts beyond the Detroit 3. Namely suppliers, transport companies and major parts of our economy are tied to automotive manufacturing. Hopefully, this strike ends very quickly before other companies take a direct or indirect hit. If it drags on, things are going to get uglier.
