A strike by Canadian auto workers could still be averted as Unifor union says contract talks with Ford Motor are not at a standstill, but experts say the sector could soon be affected by the workers’ strike anyway automobile industry in the United States.
Unifor national president Lana Payne said in an update to her members Thursday evening that the union has encountered resistance in its negotiations thus far.
“To date, we have received two economical offers from Ford Motor Company and have rejected both. This should tell you that these offers did not meet our expectations,” explained Mme Payne.
However, she added that “negotiations [n’étaient] in no case at a standstill” and that the union had until the expiration of the current contract, at the end of Monday, to reach an agreement. After that, he could announce a strike.
Meanwhile, some 13,000 U.S. auto workers went on strike Friday, targeting a plant at each of the country’s big three automakers.
Members of the United Auto Workers (UAW) union began protesting outside a General Motors assembly plant in Wentzville, Mo., a Ford plant in Wayne, Mich., near Detroit, and a Stellantis Jeep plant in Toledo, Ohio.
It was the first time in the union’s 88-year history that it withdrew from all three companies simultaneously after four-year collective bargaining agreements with the companies expired at 11:59 p.m. Thursday.
Interconnected industries
The strike, although limited for now, could soon have effects on Canadian parts suppliers, whose work is deeply integrated with that of American industry, observed the president of the Automobile Parts Manufacturers Association , Flavio Volpe.
“At the moment, with the closure of these factories, it is not an immediate blow, but it could be very soon,” said Mr. Volpe.
“If we see a prolonged shutdown or a prolonged strike, it will certainly have an effect on the volume of production, on the lines of Canadian parts suppliers. »
He explained that parts suppliers could continue production despite factories being closed, but could only really keep one or two days of inventory.
And although American workers have already walked out and UAW President Shawn Fain has taken a combative tone during this round of negotiations, Mr. Volpe stressed that circumstances are different in Canada, where the union and industry have worked closely together on certain issues.
“We’re paying attention, as we always are, but I’m certainly not equating the Unifor talks with the UAW talks,” he said.
No repercussions yet
Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, indicated that there were no repercussions on Canadian suppliers yet, but that this would happen if the strike persisted.
“It is likely that within a few weeks, if the strike continues, it will affect a number of small businesses on both sides of the border. »
He pointed out that the factories the UAW chose to target did not affect any of the Detroit Three’s powertrain operations in Canada, leaving Unifor open to strike at those factories.
“While Unifor is negotiating at almost the same time, it is unlikely that the UAW will target anything that would have a significant impact on Canadian suppliers or factories, simply so that Unifor can have the unique opportunity to target its own factories. »
So far, even U.S. strikes have been fairly limited, as the UAW seeks to pressure automakers into making more concessions, Fiorani said.
“It’s a minor inconvenience for the three Detroit giants, and it’s just to show them that they can close the factories if they want. »