GM workers strike in the U.S. — how will that impact Canada? - Global News

More than 49,000 United Auto Workers went on strike against General Motors on Monday — bringing more than 50 factories and warehouses to a standstill.It’s the union’s first walkout in more than a decade, and its effects could reverberate beyond the country’s border to Canada and Mexico.READ MORE: U.S. General Motors workers to strike, likely impact Canadian operations
Story continues belowAvery Shenfeld, the chief economist of CIBC Capital Markets, explained to Global News that any effects on Canada largely depend on how long the strike lasts.“Typically, you would make up for lost time by having additional shifts and then producing as many cars as you would otherwise,” Shenfeld said.“It’s a question of does it last long enough that you stop producing certain models and buyers look elsewhere for their vehicle.”While it’s difficult to know the effects this particular strike will have, Shenfeld added that production of vehicles is closely enough related between Canada and the U.S. that the effects could potentially be felt quite soon.“Historically, because of just-in-time inventory processes that are now quite common, it’s only a matter of days before they’re missing a supply of a critical part there or there.”WATCH: GM union workers to go on strike

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September 17, 2019 at 03:20AM