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United States: Will a large-scale strike in the auto sector have consequences in Europe? Auto Plus news in your smartphone Auto Plus news in your inbox

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United States: Will a large-scale strike in the auto sector have consequences in Europe?  Auto Plus news in your smartphone Auto Plus news in your inbox

At the heart of the Detroit Show is the United States Auto Workers Union, U.A.W (United Auto Workers) began a massive strike at the plants it owned General Motors, Ford AND Stellantis.

A simple claim

The UAW is everything 150,000 employees of the automobile industry. The demands of the trade union and its members are very simple, and revaluation their salary to the height 36% spread to four years.

Sean Fein, the new president of the UAW already denied with his union, a pay rise 20% proposed by certain leaders. None of the manufacturers wanted to provide additional days leave employees do not increase with pensions

A situation that risks getting worse

If certain manufacturers like it Stellantis try to reach the employee, the situation remains at the moment on neutral. The risk to manufacturers would be that the movement generalize in country. Especially since the trade union had been preparing for this strike for months. In fact, the latter increased its funds to almost 825 million dollars pay strikers over a long period, a a very long period.

If the conflict spreads throughout the country, then all production facilities can be significantly slowed down, or even completely closed. stop. A situation that at first can seriously burden the producers, but also them suppliers and thus weaken the entire sector. Numbers about unemployment the risk of a sharp rise in the coming weeks. The Ford Group announced layoffs 600 workers who are not on strike at its plant in Michigan. The release, which is currently only temporary, assures Ford.

If the union has not moved the deadline, every day of the strike costs extremely expensive manufacturers Consulting firm Anderson Economic Group (AEG) estimates that if the strike lasted “only” 10 days, it would cost approx 5 billion dollars losses So one can imagine the consequences of the ongoing strike A few weekseven several months !

What are the consequences in Europe

As mentioned above, one of the companies affected by these strikes is none other than Stellantis. As we have seen, the impact of such a strike can have consequences very important in the USA. However, this should not be a strike not feel in Europe as the Stellantis group very powerful financially speaking.

However, let us remind you that Stellantis excelled in the first half EUR 46 billion in turnover only in North America.

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Author: Adrian Sauli
Source: Auto Plus

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