The UAW strike at the "Big Three" persists. More than three weeks in, and it shows little signs of stopping. In fact, the UAW has increased the number of sites where it is pulling workers out of the plants since the advent of the work stoppage.

Not only have the sites struck by the union been impacted, but other operations have been impeded as well given the nature of the supply chains and work flow at the companies. According to Forbes, "In a statement, Ford said it had laid off just over 330 employees at facilities in Chicago and Lima, Ohio, bringing its layoffs since the start of the strike to 930 employees -- Ford communications director T.R. Reid told Forbes the company attributes the cuts to 'upstream effects' from facilities targeted by UAW’s strike."

Ford wasn't alone. Forbes also reported in September, "After cutting roughly 2,000 Kansas-based assembly plant employees just days into the UAW’s strike, General Motors said it will lay off 130 employees at a metal center in Ohio, and another 34 at a facility in Indiana."

And it's not just the Big 3 being impacted. Auto suppliers likewise appear to be reducing headcount in the wake of the strike. The Detroit Free Press highlighted an example on Sept. 18, "An automotive component manufacturer in Michigan is planning to layoff 293 people as a result of the United Auto Workers strike against the Detroit Three automakers, according to a Worker Adjustment and Retraining Notification (WARN) filing. On Thursday, CIE Newcor filed the WARN saying a temporary closing 'is possible, but will be determined by the length of the potential UAW- Detroit 3 strike.' CIE Newcor makes components for tier 1 suppliers out of its two plants in Michigan: One in Owosso and another in Corunna. The notice said the layoff is expected to start Oct. 2 and last one month."

Companies in this sector facing similar challenges should be cognizant of some of the legal issues that may come into play here. First, the federal WARN Act - and some states have their own equivalents with broader protections - may be triggered depending on how many employees are at the site and how many are laid off. If WARN is implicated, certain steps with regard to notifying the employees and others must be followed. Second, if an employer has a union, the collective bargaining agreement(s) may have provisions governing layoff and recall rights that will need to be accounted for when implementing a reduction on force. Effects bargaining related to these actions may be required as well.

Bottom line: as the strike drags on, we can expect more fallout than just at the Big 3 and just at the sites being targeted by the UAW. Stay tuned to the blog for further updates on this front.