Mexican automotive industry hopes for quick solution to strike in the US

Mexican automotive industry hopes for quick solution to strike in the US

The automotive industry Mexico wait a “prompt solution” to the strike declared last week by the United Auto Workers of USA (UAW) to demand better wages and labor benefits for ford, General Motors and Stellantis.

“We hope that a prompt solution will be reached for the benefit of the industry and the region”The Mexican Association of the Automotive Industry (AMIA) said this Monday in a brief positioning.

The organization noted that the automotive sector maintains a “strong regional integration” throughout the value chain, but that “moment” is “difficult” calculate the impacts that the strike in the US industry may have for Mexican factories.

This, he argued, because the estimate depends on factors “such as its duration, the lines that stop, as well as the number of plants affected.”

He said that the AMIA sees “carefully” events and is constantly analyzing the information that may arise “both from companies, the union and the Government” of the United States, and that maintains continuous communication with all its partners.

The union and the three companies have been negotiating since July to sign a new collective agreement for the next four years, but the workers complain that the manufacturers are not negotiating in good faith at a time when they are recording millions in profits.

The union demands a salary increase of 46% in four years, the reintroduction of traditional pensions, the reduction of working hours and the unionization of workers in battery production factories.

The importance of the automotive industry for Mexico lies in the fact that it represents almost the 4% of the national gross domestic product (GDP) and the 20.5% of manufacturing GDP, more than any other sector, according to the AMIA.

Mexico, in addition to assembling cars, is also a supplier of parts, so the National Auto Parts Industry (INA) estimated that the strike will cause a loss of US$ 76 million due to the drop in production during the first seven days.

The National Chamber of the Processing Industry (Canacintra) also estimated that one in 10 jobs on Mexico’s northern border is in danger due to the strike against large US automakers.

Source: EFE

Source: Gestion

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