Canadian union says auto transition needs labour market adjustment programme

Canadian trade union Unifor has released a research report outlining recommendations regarding the auto sector’s transition. According to the report, the transition to electric vehicles will structurally transform the supply chain, implying that there are firms, assets and workers at risk. One of the report’s recommendations is that a dedicated worker-adjustment programme is needed to protect employees affected by distributional effects of the transition on the labour market (skills, income and displacement). The report argues that the labour market adjustment, is a key part of the transition itself. Distributional effects have been at the core of debates surrounding the need to plan a just transition. The report says: “Autoworkers around the world are experiencing this tension. For instance, Tesla is butting heads with German autoworkers union IG Metall by refusing to accept industry standard wages and working conditions at its giga factory in Berlin. In the United States, the United Auto Workers (UAW) union appeared headed for a collision course with GM following reports that its joint venture battery company, Ultium LLC, will decide workers’ wages, suggesting no role for the union or collective bargaining.”