BusinessThe US returns to strikes: how will the UAW workers' strike affect...

    The US returns to strikes: how will the UAW workers’ strike affect the economy?

    This Friday, auto workers left their jobs at the three major auto manufacturing companies in the United States to declare the start of a historic strike. after the constant failures of agreements for fairer salaries and better working conditions.

    The strike by the United Auto Workers union hits hard not only General Motors, Ford and Stellantis, but also the states in which these large companies operate such as Missouri, Michigan and Ohio and the country’s economy in general.

    For the UAW, this demonstration against the three plants has been declared a “new approach” to demand what is fair in what they have called a “standing strike.” UAW President Shawn Fain said This act is a sign of the strength and unity that the union hasbut still “all options are still on the table,” he said.

    Although Fain assured in his speech: “we are not going to ruin the economy. The truth is that we are going to ruin the multi-billion dollar economy”, that is to say, that they are supporting something much more specific which is the automotive sector and its great executives, which It is true that many experts point out that the impact of the development of this strike could lead the country into a recession.

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    Since last year with inflation peaking at 9.1% the US economy has been suffering a lot of damage. In this case, Anderson Economic Group estimates highlight that if the strike continues for 10 days, This could cost the US economy approximately $5 billion.

    According to Gabriel Ehrlich, an economic forecaster at the University of Michigan, the lowest figure measuring a more indirect, but immediate impact is $440 million dollars at the national level if the UAW strike extends for two weeks.

    These measures are at a general level, but Tyler Theile, vice president and director of public policy at Anderson Economic Group, conducted an analysis at the local level and indicated that Many companies that operate in the same place where the strikes are taking place will also be affected. and there may be a wave of layoffs.

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    Likewise, the agency estimated that if the strike continues for 10 days, there will be a shortage of inventory and there will be an increase in car prices.

    Recently, one of the manufacturers involved, Stellantis, offered the UAW a 14.5% wage adjustment in its latest agreements, according to Mark Stewart, COO of Stellantis North America. The company remains committed to negotiating in good faith and reaching a fair agreement before of the deadline.

    “With this equitable offer we seek a timely solution to our discussions,” he said while stating that the demands, demands and proposals by the UAW “could jeopardize our ability to make future decisions that provide job security to our employees. “This is a lost proposition for all of us,” he indicated.

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    For her part, General Motors CEO Mary Barra said the auto giant had tried to negotiate with the UAW in hopes of avoiding a strike, “we have been at the table since July 18. We have a historic offer and right now we are at the table ready to move forward,” she said.

    The three big companies have mentioned that the offers have been quite reasonable and that they are still willing to negotiate, but they assure that They are also going through moments where it has been necessary to reduce vehicle prices In order to remain in the market, it has affected workers and their salaries.

    Despite the manufacturers’ efforts to reach negotiations, the counteroffers were described as “disappointing” by the United Auto Workers union, while demanding salary increases of 36% in four years.

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    Source: La Opinion

    This post is posted by Awutar staff members. Awutar is a global multimedia website. Our Email: [email protected]


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