MILWAUKEE — For a company like Strattec Security Corporation that's all-in on auto parts, word of a potential strike is followed closely.
"If anything we've learned through the Covid years, we've learned how to be flexible and adapt and change," said Frack Krejci, CEO and President of Strattec.
The Milwaukee-headquartered company produces a variety of parts, from door handles to power tailgates and key fobs. Many of those products go to Ford, GM, and Chrysler-maker Stellantis — the Big 3.
According to United Auto Workers (UAW), leaders of the union may lead strikes at a number of the Big 3 factories if demands aren't met. The union is demanding better pay and benefits.
NBC News reports that GM employees' pay grew just under 3% from 2018 through 2022. Pay for the head of GM, NBC reports, grew by more than 30% during that same time.
Krejci, who's worked in auto parts for decades, said they're prepared if the picket lines form.
"We're in a position where we can build inventory and basically be prepared for when the industry does come back. [That way] we don't have to ramp up and do things — premium freight and all those unnecessary expenses. It's a lot better to keep manufacturing production going at an even keel," said Krejci.
The CEO said Strattec also produces parts for companies not covered by the UAW contract, like Tesla and Volvo. Demand, he said, would still remain there.
What could be an issue, Krejci said, is if other non-OEM manufacturers, like Strattec, don't have a strong balance sheet if autoworkers step off the job.
"If somebody goes out of business, you have a real problem, because that could have a domino effect on the industry," he said.
An issue that could lead to supply chain shortages, said Krejci.
According to UAW, strikes could begin if they're unable to reach a contract agreement with automakers by midnight Thursday.
"I won’t be surprised if there’s a strike. But I’d be shocked if it went across the board, all plants for all customers," said Krejci.
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