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IMF Executive discuss global crisis and the automotive industry

20 February, 2009Executive Committee members adopt a resolution in solidarity with workers at General Motors and across the sector.

GENEVA: During the Extraordinary Executive Committee meeting of the International Metalworkers' Federation, delegates discussed the impact of the financial crisis on the automotive sector. A resolution adopted unanimously by Committee stressed the obligation and responsibility of employers to negotiate, inform and consult with trade unions and employee representative bodies on terms, conditions and impacts in advance of any decisions that may impact workers and their livelihoods.

"Metalworkers and their trade unions face severe restructuring challenges globally due to the spreading financial crisis and deepening worldwide economic slowdown. The financial and market factors that led to and compound the very grave situation have been outside the control of workers. Yet it is workers who have disproportionately suffered the adverse consequences of the systemic crisis," stated the IMF resolution.

The resolution calls for General Motors and all employers to"...ensure that any restructuring process first considers alternatives, and if restructuring does occur, that it is done in a socially acceptable manner." It calls for urgently needed coordinated government policies around the world that include:

  • Prompt adoption of stimulus programs that benefit and protect workers economy-wide.
  • Protecting employment and income support, along with skills development.
  • Addressing company solvency and restoring credit lines, ensuring that if any sacrifices are unavoidable, that the burden is equitably and justly shared.
  • Stimulating demand for motor vehicles including restoring liquidity for vehicle financing.
  •  Progress on cleaner vehicles and fuels.

The IMF's Automotive Department Director Ron Blum presented a preliminary evaluation of the global crisis and restructuring in the motor vehicle sector. Key trade union challenges cited include maintaining solidarity when conditions have heightened already existing risks of divisions between workers, blocking attempts by companies to substitute precarious jobs for permanent ones in the aftermath of the crisis, and needing to broaden and deepen trade union efforts to organize workers during a period of deteriorating economic conditions.