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2 July, 2009The auto industry was among the first branches to be hit by the financial crisis taking a heavy toll on workers and their families.
Text/ Ron Blum
Impacts from the implosion and freezing up of the deregulated and highly leveraged global financial system continue to sweep over the productive sectors of the world's economy. Job loss and displacement confront millions of metalworkers around the world. The automotive industry was among the first branches to be hit by the financial crisis and repercussions have consequently rolled across companies, down supply chains and through communities in every region, taking heavy tolls on workers and their families.
In effect, the current crisis is the first synchronised, worldwide industry downturn since the automotive sector's rapid globalised expansion began several decades ago. For metalworkers and their unions, the unfolding crisis threatens to greatly intensify and accelerate previously existing restructuring pressures.
Workers are bearing the brunt of a crisis that they did not create, and for which urgent and effective responses are essential. These must come through concerted and coordinated economic, social and industrial government policies that bring about a new deal that protects workers' jobs, family income, and community well being, promotes sustainable development and moves economies to full employment. Where any form of industrial or enterprise restructuring is unavoidable negotiations between unions and companies should ensure that actions are mutually agreed upon and outcomes socially acceptable.
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