GM assembles its Chevrolet Silverado and GMC Sierra heavy duty pickups at Flint Assembly.
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Union workers at Nexteer Automotive’s complex in Saginaw, Michigan, walked off the job early Tuesday after rejecting a proposed contract, halting production of steering systems and other components essential to vehicle production by General Motors Co GM.N and other automakers.
The strike came after UAW-represented workers at the Saginaw factory voted down a proposed contract by a wide margin on Sunday.
GM and Fiat Chrysler Automobiles NV FCHA.MI FCAU.N said in statements Tuesday they are monitoring the situation at Nexteer.
Luis Canales, Nexteer director of global corporate affairs, said the company is working with the union to “resolve the issue in a timely manner”.
The strike at Nexteer began early Tuesday after UAW Local 699 issued a strike deadline of 11:59 p.m. Monday for the company to accept a new labor contract proposal.
“Following an interruption in production on December 8, 2015, employees have resumed regular schedules as Nexteer and the UAW have reached a new tentative agreement”, Mark Decker, vice president and chief human resources officer of Nexteer said in a statement. A woman answering the phones at the union hall directed questions to the union FacebookFB 1.10 % page, where posts showed the strike announcement. “At this point our production is not impacted”.
GM was assessing the potential impact on its operations Tuesday morning, a spokesman said.
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A strike at a critical parts supplier can have widespread ramifications, since much of the industry now operates on a just-in-time system. Sometimes those deliveries are made just a few hours before the part is bolted onto a vehicle. In 2014, the company had estimated total sales of $2.9 billion.
