An Automotive News article, “Smaller suppliers still at risk as industry ramps up after UAW strike,” discusses the health of the supply chain in the wake of the UAW strike and features comments from Warner Norcross + Judd attorney Zainab Hazimi.
According to Automotive News, many small to midsize manufacturers, which have been hit hard in recent years by higher material costs and uneven vehicle production schedules will struggle to quickly ramp their factory lines back to full production because of the financial strain they find themselves under after the strike, said Zainab Hazimi, attorney in the Detroit office of Warner Norcross + Judd.
As a result, many companies are planning to extend job furloughs, four-day workweeks or periods of unpaid vacation time over the next few months as cost-saving measures, she said.
"The issue now as we ramp up is that we can't afford to go back up to 100 percent just yet," Hazimi said. "We don't have the capacity and we don't have the money. The furloughs that everyone was so worried about before — they're actually going to continue utilizing them just to save costs and recover from the financial hit."
Automotive News subscribers can read the complete story here.
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