(Washington) US Treasury Secretary Janet Yellen called on Monday for a “win-win” agreement to end the auto strike in the United States, also deeming it “premature” to quantify the economic impact of this social conflict.
“I think it’s premature to make predictions about what this means for the economy. “It will depend a lot on the duration of the strike and who will be affected,” commented the American Secretary of Economy and Finance, 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 stressed that “the industry is doing well and the president wants to see workers doing well too.”
UAW union 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.
“There is absolutely no reason for a shutdown and we want Congress to do its job of funding the government,” the secretary 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.
“It’s the best of all worlds to see a continued strong economy, a good and strong job market and falling inflation,” commented the Treasury Secretary.
The United States has been experiencing a labor shortage for nearly two years, which has led to soaring wages, which has helped fuel inflation. But in August, the unemployment rate jumped to 3.8%, driven by 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 two and a half years of pause linked to COVID-19, should weigh: “for some families, I think it will have an impact on their expenses “, underlined the minister.
