2023-09-18 20:25:13
“I think it’s premature to make any predictions about what this means for the economy. It will depend a lot on how long the strike lasts and who is affected by it,” commented the US Minister of Economy and Development. Finances, interviewed on CNBC.
“The important point, I think, is that both sides need to iron out their disagreements and work towards a win-win agreement that is good for workers and good for the industry,” she added.
The American auto workers union, the UAW, began a strike on Friday among the “Big 3” (General Motors, Ford, Stellantis) and is demanding in particular wage increases.
On Friday, US President Joe Biden called on the three manufacturers for a “fair” sharing of their “record profits”.
Janet Yellen thus underlined that “the industry is doing well and the president wants to see workers do well too”. “President Biden has made it clear that he expects them to work hard to negotiate 24/7 to reach a solution. So we hope that happens soon,” he said. she declared again.
UAW President Shawn Fain threatened Sunday that the strike could be “expanded” if better proposals were not made.
Three sites have been down since Friday. They concern 12,700 of the 146,000 UAW members listed at the three manufacturers, who have never experienced a simultaneous strike.
No sign of economic slowdown
In addition to this strike, another shadow hangs over the American economy: that of the shutdown, a paralysis of the administration, if Republicans and Democrats in Congress do not agree, by October 1, on the government budget, object of a political battle.
“There is absolutely no reason for a shutdown and we want Congress to do its job of funding the government,” the minister said.
Janet Yellen also assured that the American economy was in good health, despite the measures implemented for almost two years by the American central bank, the Fed, to slow down activity, and, thus, see a drop in ‘inflation.
“I don’t see any signs that the economy is likely to slow down,” she said.
The United States has been experiencing a labor shortage for almost two years, which has led to a surge in wages, which has helped fuel inflation. But in August, the unemployment rate rose to 3.8%, due to an influx of new workers.
“We have a healthy labor market, but not as tight as it was,” Yellen said.
The resumption, however, of student loan repayments from October, after a two and a half year break linked to Covid, should weigh: “for certain families, I think it will have an impact on their expenses”, he said. underlined the minister.
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