Friday, September 29, 2023

The strike has paralyzed the US auto sector

More than 12,000 workers in the US auto industry went on strike, bringing Detroit’s three former automakers to a complete halt.

Members of the United Auto Workers (UAW) union are demanding better wages and job security.

The protest against the three automotive giants: General Motors (GM), Ford and Stellantis, after they did not agree to negotiate a contract with their workers.

This caused the production of auto parts in Mexico to decrease by approximately 75 million dollars, in the first week of the strike alone.

Today the UAW in the US announced the cessation of activities at three manufacturing plants, the Ford Assembly plant located in Wayne, Michigan, as well as the Stellantis Assembly plant in Toledo, Ohio and the General Motors plant in Wentzville, Missouri.

Faced with this conflict, the National Auto Parts Industry (INA) of Mexico regrets that the parties involved, that is, companies and unions representing about 150 thousand workers, according to local reports, did not reach an agreement to negotiate production contracts. working conditions.

“INA estimates that in the next 7 days, if the current scenario continues, the level of production of auto parts throughout the country could be a decrease of approximately 76 million dollars,” said the organization. in the business led by Armando Cortés.

He added that this reduction currently represents 0.1 percent of Mexico’s auto parts exports to the US in 2022.

“INA will seek to support its partners so that, in the event of a reduction in working hours, these areas can be used for training and qualification in new technologies such as electromobility, or dedicated to the corrective and preventive maintenance of those production line. . “he clarified.

The historic UAW strike could affect the global auto market. The source of this conflict is found in the demand for a salary increase in the next four years up to 40 percent, while Ford, GM and Stellantis offer a salary increase of less than 20 percent.

Automakers are concentrating most of their resources and investments on the transition to electromobility and the production of electric cars, making it difficult to increase wages. Currently, Mexican brands do not comment on the impact on their national production chains.

The president supports the workers’ strike

“Companies are making significant offers, but I believe they need to go further to ensure that record corporate profits translate into record deals for the UAW,” Biden said in a White House statement. , which urges an agreement that is “fair.” and useful. for both parties.

World Nation News Desk
World Nation News Desk
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