According to the latest data released, soaring food prices pushed consumer prices in Britain to 9.1% in May, a 40 year high, highlighting the plight of the sharp rise in the cost of living of British people. Prices and oil prices soared, but people's wages did not rise accordingly, and their living standards fell substantially. In the face of the widening gap between the rich and the poor, 40000 British railway workers went on strike on June 21, 23 and 25 to strive for higher wages and better working conditions.
Previously, the railway, maritime and Transport Union (RMT) of the UK failed to reach an agreement on remuneration, working conditions and layoffs in negotiations with operators. RMT asked for a salary increase of 7%~8% for its members, but the trade union said that network rail could only provide a 3% increase.
The railway strike, the largest in 30 years, led to a serious disruption of the British railway network and most services came to a standstill. The British trade union also warned that the railway strike, which lasted for several days and caused serious traffic disruption in various places, may only be the beginning of the summer strike. The railway strike may last for six months. In addition, many British industries are considering strike action on wages. On June 23, about 700 employees of Heathrow Airport in the UK voted, and 95% of them agreed to strike. This is because the company refused to withdraw the 10% salary reduction measures implemented during the COVID-19. It is understood that the strike action is likely to start during the busiest summer holidays. In addition, British teachers, doctors and postal workers also said they would take strike action unless they get a wage increase corresponding to the inflation rate.
The "road transport defense platform" of small and medium-sized transport truck drivers and self-employed transport drivers in Spain held a meeting on June 26 to decide whether to continue the strike. Earlier, the general strike of small and medium-sized truck drivers in Spain to protest the rise of oil prices lasted for a month, leading to a supply shortage in Spain.
On June 17, thousands of workers in German seaports, including Hamburg Port, went on strike, which further exacerbated the port congestion. On June 20, about 70000 Belgian workers marched in Brussels, demanding that the government take action to deal with the soaring cost of living. The operation of Belgium's airport and national transportation network almost stopped because of the strike of workers, and the port operation of Antwerp Bruges, one of the largest ports in Europe, was also affected.
Canada on the other side of the Atlantic is facing the same situation. The data released by Statistics Canada on June 22 showed that the consumer price index (CPI) in May this year increased by 7.7% compared with the same period last year, breaking the record of inflation growth since January 1983. However, the wages of Canadian workers have not increased accordingly, resulting in a significant decline in people's living standards. On June 15, the National Railway Corporation of Canada (CN) received the advance notice of strike according to the international trade union organization "international brotherhood of electrical workers" (IBEW). The chief negotiator of IBEW disclosed that CN workers failed to reach an agreement on benefits and wages on June 18, and then the workers went on strike. IBEW trade union represents the rights and interests of about 750 signal and communication employees in Canada.
Earlier strikes in June took place in South Korea. The strike of South Korean freight truck workers started on June 7 lasted for 8 days. After four rounds of negotiations with the South Korean government, a tentative agreement was finally reached on extending the minimum wage guarantee for workers. Later, discussions will continue on whether to extend the minimum wage guarantee for workers to other areas.
Strikes in these major economies have had a negative impact on global production and supply chains.
The Ministry of industry of the Republic of Korea said that the eight day nationwide strike delayed the transportation of goods in the automobile, petrochemical products, wine and other industries, and the production losses and delivery obstacles made the losses of the industrial sector of the Republic of Korea exceed $1.2 billion. According to the South Korean supply chain insight data, one week after the strike of freight truck workers in mid June, the median weekly stay time of ships in Busan Port in South Korea soared, and the average stay time of imported containers in the main container ports in South Korea was 14.29 days, higher than the usual 4 days; The average stay time of export containers increased from 3.5 days in the previous week to 11.38 days. During the strike, the cargo volume of Busan, the busiest container port in South Korea, plummeted to a quarter of its normal level, while the throughput of Incheon port fell by about 20%.
During the strike of British railway workers, 80% of the trains in Britain were shut down, and the operation time of other trains was greatly reduced. Due to the strike of signal workers, the train operation in some rural areas has been seriously affected. The collapse of the railway network has left many Britons working at home or finding alternative ways to commute. Maggie Simpson, head of the UK rail freight group, said the strike would "add additional risks to the already fragile supply chain". Regarding the impact of the strike on transport, Maersk recently announced that it is maintaining close communication with the UK rail freight operators, hoping to minimize the impact of the strike on Maersk's inland operations in the UK. Maersk also reminded customers that there may be a risk of unexpected disruption to British Rail transport due to the strike.
At present, strikes in Europe are spreading, the supply chain has been severely impacted, and the backlog of undelivered goods in ports is becoming increasingly serious. This has forced shipping companies to give priority to shipping containers full of goods, leading to a large number of empty containers, which are crucial for Asian exporters, being trapped in export hubs such as the port of Rotterdam in the Netherlands. Maersk announced the latest situation of ports in major regions in northern Europe, saying that Bremen port, Rotterdam port, Hamburg Port and Antwerp Port are facing persistent congestion, and even have reached a critical level. Some traders worry that the recent strike by European dockers will have the nth impact on the global supply chain this year.
Now people are worried that the global strike action will not be a repeat of the 1970s? In the 1970s, strikes, inflation and energy shortages plunged the global economy into crisis. For example, in the winter from the end of 1978 to the beginning of 1979, the economic crisis reached its climax in Britain. About 1.5 million people in various fields in Britain took part in the strike, and the medical treatment, logistics and even waste disposal were all suspended in a large area, which was called the "winter of dissatisfaction". Today, the world also faces the same problems: high inflation, insufficient energy supply, possible economic recession, declining people's living standards, and the widening gap between the rich and the poor.
Source: International Business Daily
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