As the largest automobile manufacturer in the United States, General Motors recently held a nationwide strike. According to foreign media reports, nearly 50,000 people of General Motors held a national strike, which also set a record of nearly 12 years. It is reported that this will affect the entire American economy.
UAW workers held their biggest strike since 2007. General Motors' operating profit last year was11800 million US dollars, and the profit margin in North America was 1 1.8%. Union leaders and their members made it clear that they wanted to share profits and demanded more wages and benefits, as well as promises to save the company and close four American factories. The main reason for the strike is that the workers are very dissatisfied with the benefits and wages of their work. I hope to win some benefits for myself through such a move.
Strikes have a great impact on general finance. According to the statistics of Citigroup, the daily strike of GM employees will result in the loss of operating income of the whole vehicle 1 100 million USD. Until June 16 and 18, GM's share price fell by 4.2%, which was only the result of a strike that lasted for several days, and we can enjoy it. If the strike lasts only a few days, it may not cause much damage to the economy, nor will it shake the data of total revenue and expenditure. But if it lasts for more than a few months, the income of workers will be reduced, and there will be problems in the general supply chain.
If the strike lasts for a day or two or a week or two, it will certainly not have much impact on the American economy, but as long as the strike lasts for more than two weeks, it will be destructive. If the protracted strike continues, it will cause devastating losses to enterprises in Michigan, the Midwest and other areas where automobile retailing is the basic industry.