SUPPLIER EYE

So far this decade, our industry has been heavily impacted by an endless stream of calamities. When impacted in isolation, dealing with a pandemic, weather disasters, supply-chain disruptions, ICE-to-BEV transition risks, labor-availability issues, rising cost of capital and escalating price inflation can be difficult to navigate. In close combination, these hazards can be catastrophic to a supplier organization - a constant stream of firefighting unanticipated events, as well as known issues such as the upcoming labor contract negotiations with the United Auto Workers (UAW) and Canada's Unifor trade union.

Since 2020, (Unifor's last contract negotiation), the industry had September 2023 circled on the calendar. The gravity of simultaneous expiry of both contracts (within four days of each other) is not lost on anyone. Since the last negotiations, both unions have new leadership driven by well-defined agendas supported by their memberships. Additionally, since the last contract, labor costs have been escalating for non-union employers, ecosystem-changing BEV investments have been rampant and lower investment in the ICE business is apparent. Lots to react to and integrate into future agreements.