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Tag: uaw

  • Elon Musk brands Sweden’s unions ‘insane’ after strikes cripple Tesla operations

    Elon Musk brands Sweden’s unions ‘insane’ after strikes cripple Tesla operations

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    Organized labor ranks among Elon Musk’s least favorite things, right up alongside Wall Street short sellers and the mainstream media.

    The world’s wealthiest man built Tesla into the industry’s dominant automaker despite what he believes has been fierce opposition from all three. Yet it is his steadfast refusal to play ball with trade unions that is his biggest headache of late. 

    Only weeks after labor leader Shawn Fain threatened to raise working conditions at Tesla with the help of his United Auto Workers, Sweden’s own industrial union IF Metall is bringing the company’s operations to a complete standstill in the Scandinavian country. 

    It’s the first time that Tesla’s operations have been hit by a strike.  

    “This is insane,” the entrepreneur grumbled.

    Sweden is a major destination for Tesla cars, vying with the Netherlands as the fourth-largest market for electric vehicles in the European Union after Germany and France. More than 90,000 EVs have been sold through October, according to the industry’s own data

    More importantly, Sweden punches way above its weight when it comes to EV adoption, where it is currently the undisputed EU leader.

    Nearly 39% of all new cars sold in the Scandinavian country are fully electric, triple the overall adoption rate in the EU through the first ten months. It is by far the most popular powertrain choice among Swedes, with conventional gasoline-only cars only amounting to 52,000 during the first ten months.

    Tradition of collective bargaining

    Even though Stockholm enjoys a higher per capita number of tech startups valued at $1 billion-plus in Stockholm than almost anywhere else in the world, the country still has a long tradition of collective wage bargaining. 

    As a result, when Tesla refused to agree to a wage deal with 120 mechanics at seven different workshops, IF Metall declared a strike in late October.

    This has since spiraled out of control as more unions have since joined in, including dockworkers that now refuse to unload imported Tesla cars arriving in ports and even workers from the state-owned postal service responsible for delivering license plates.

    In the short term, Musk can ill-afford sales in a key market to dry up. Investors are becoming increasingly anxious that his company cannot maintain the breakneck speed of growth, to which they have long become accustomed. 

    On the other hand, giving in could have long-term implications as he has thus far refused to play ball with unions.

    Any compromise in Sweden would likely only embolden labor leaders in the U.S. and Germany to increase the pressure.

    Responding to Musk’s frustration, Swedish parliamentarian Annika Strandhäll corrected the centibillionaire.

    “This is the Swedish labor market model agreed on since almost a hundred years between employers and employees,” she wrote. “In Sweden all serious companies sign collective agreements.”

    Subscribe to the new Fortune CEO Weekly Europe newsletter to get corner office insights on the biggest business stories in Europe. Sign up before it launches Nov. 29.

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    Christiaan Hetzner

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  • Honda joins Toyota in raising U.S. wages for its auto workers as unionization push looms

    Honda joins Toyota in raising U.S. wages for its auto workers as unionization push looms

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    Honda Motor Co.’s U.S. unit joined other foreign carmakers in raising their automobile workers’ wages in the wake of historic wins for the United Auto Workers and as the union has vowed to intensify its organizing push.

    Honda
    7267,
    -4.11%

    gave U.S. production workers an 11% raise that will go into effect in January. Honda also cut down the time to reach a top wage from six years to three years, and added benefits, the company said Friday.

    The Wall Street Journal on Friday first reported the raises, citing a memo it had reviewed.

    UAW President Shawn Fain has said numerous times the union wants to expand its base into the nonunionized automobile workforce beyond the Midwest.

    At an address to UAW members in mid-October, for instance, Fain said that the UAW was “going to organize non-union auto companies like we’ve never organized before.”

    Don’t miss: Ford and GM inventories rise despite UAW strike, but demand concerns linger

    U.S. auto workers at foreign carmakers such as Honda and Volkswagen AG
    VOW,
    -1.12%
    ,
    which have their major factories in the Southeast, are not unionized. Neither are auto workers at Tesla Inc.
    TSLA,
    +2.22%
    ,
    which has car-making factories in California and Texas.

    Auto workers went on strike for six weeks starting in mid-September, hitting several factories and facilities of Ford Motor Co.
    F,
    +1.65%
    ,
    General Motors Co.
    GM,
    +0.75%

    and Stellantis NV
    STLA,
    +1.57%
    .

    The labor action, which the UAW dubbed a “stand-up strike,” called on select local unions to stand up and walk out. It marked a break from tradition: Going back decades, the UAW would strike at one company at a time, mostly to save its picket-line firepower and strike fund.

    Related: There’s a new Tesla bear in town: EV maker is a ‘very expensive company,’ HSBC says

    The new strategy yielded big results, including pay raises of around 25% over the life of the four-year contract plus cost-of-living adjustments, the end of several wage tiers, and better retirement benefits.

    At an event Thursday to celebrate the UAW deal and the reopening of a Stellantis factory in Illinois, President Joe Biden seemed to support the UAW’s unionization push.

    “I want this type of contract for all auto workers,” Biden said. “And I have a feeling UAW has a plan for that.”

    During the UAW strike, some Wall Street analysts said that Tesla would benefit from the increased costs to unionized factories following the labor agreements. One analyst noted that even before any wage increases, the Big Three automakers were paying their workers 38% more than comparable Tesla workers earned.

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  • ‘It’s kind of a perfect storm:’ UAW’s deals highlight why labor is winning so big despite record-low unionization rates

    ‘It’s kind of a perfect storm:’ UAW’s deals highlight why labor is winning so big despite record-low unionization rates

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    U.S. labor unions are once again flexing the muscles in the national spotlight.

    The United Auto Workers’ tentative agreements with Detroit’s Big Three automakers could end the union’s six-week strike. Gridlock persists in Hollywood between actors and major studios, while hospitality workers in Las Vegas, Detroit, Southern California and beyond are fighting for better pay and protections.

    But despite historic walkouts and record contract deals seen this year, there’s a lot stacked against labor organizers. Union membership rates in the U.S. have been falling for decades due to changes in the economy, employer opposition, growing political partisanship and legal challenges.

    “Even though we’re seeing stronger support for unions, (with) the highest popularity of union favorability in polls since at least the 1960s, translating the worker desire for representation into actual representation is really hard under our current system,” Alexander Colvin, dean of Cornell University’s School of Industrial and Labor Relations, told The Associated Press earlier this month.

    Still, some labor advocates see growing momentum. Here’s where things stand.

    What’s driving union activity now?

    Across the U.S., hundreds of thousands of workers have participated in strikes this year. Labor activism has surged in tandem with soaring costs of living and rising inequality, particularly the growing pay gap between workers and top executives. Those inequities only became more glaring during the COVID-19 pandemic as U.S. corporations raked in record profits.

    “It’s kind of a perfect storm, (so) you see a lot of union movement these days,” said Eunice Han, an assistant professor at the University of Utah specializing in labor economics.

    The tightest U.S. labor market in decades is also giving workers leverage to challenge their employers.

    The unemployment rate in the U.S. is close to 50-year lows and there are now about 1.5 open jobs for every unemployed person, according to recent government data.

    Open jobs means American workers are quitting in higher numbers because they are confident of landing a better paying job. The unemployment rate is 3.8%, further signaling leverage for workers.

    Success or partial victories in high-profile union fights can also inspire organizing across industries — and bring lessons for future contract talks. A takeaway from the UAW’s strike, for example, “is to act aggressively and creatively” while finding allies, said Cathy Creighton, director of Cornell University’s Industrial and Labor Relations Buffalo Co-Lab and a former field attorney for the NLRB.

    UAW President Shawn Fain “didn’t do things the same way that had been done in the past,” Creighton added, noting the tactic of hitting General Motors, Ford and Stellantis at once through a build-up of targeted strikes, which were communicated to members on platforms like Facebook Live. Support from government officials, including President Joe Biden, also strengthened the campaign.

    Union rates have been falling for decades

    While pickets lines seem to be everywhere this year, union membership rates have been declining for decades. Only 6% of U.S. private-sector workers belong to unions today, a sliver of the 35% that were union members in 1953.

    Todd Vachon, an assistant professor in the Rutgers School of Management and Labor Relations, points to the post-World War II Taft-Hartley Act, which restricted the power of labor unions — as well as factors like relocating manufacturing jobs overseas and an uptick in anti-union stances from both employers and lawmakers that grew in the 70s and 80s.

    Vachon notes one pivotal moment in particular, when President Ronald Reagan fired all striking air traffic controllers in 1981.

    “That sent a really clear signal to the business community that it’s a-okay to be completely anti-union and to be so in a very belligerent way, because even the president of the United States is doing it,” he said.

    Separately, with the rise of the gig economy, some large companies have recategorized employees as “contractors,” making it harder for them to unionize. And growth in industries that haven’t had a strong history of union membership, such as technology, has also contributed to the decline in unionization.

    Last year, the number of both public- and private-sector U.S. workers belonging to unions actually grew by 273,000, according to data from the Bureau of Labor Statistics. But the U.S. workforce grew at an even faster rate, meaning the percentage of those belonging to unions fell slightly.

    What labor laws matter for workers today?

    The National Labor Relations Act of 1935 granted private-sector employees the right to unionize. A 1961 executive order from President John F. Kennedy allowed federal employees to organize. That came around the same era that states also began to pass labor laws for their own public workers.

    Some states in the South and lower Midwest “will allow police and firefighters to collectively bargain, but not state employees. Or they’ll let state employees bargain, but they can only bargain over wages,” Vachon said. “That shows you how important the labor law is. It really sets the framework for which workers can either organize a union successfully or not.”

    A handful of states also have “right to work” laws which, in unionized workplaces, require unions to represent everyone regardless of whether individuals choose to pay dues or formally join. Such legislation has been criticized for undermining the financial resources and bargaining power of unions.

    Attitudes towards unionization have become increasingly partisan, too, and also divided geographically. Politically “blue” states tend to have higher unionization rates than “red” states. Several states have also dialed back on union protections in recent years, Han said.

    Today’s economy throws up unique challenges for organizing

    Unionization efforts have expanded but many are taking place where there is little history of organized labor, creating a higher bar for workers.

    Colvin points to Starbucks workers who have seen union drives clipped in the last year. Starbucks has been accused of chilling organization by closing unionized stores and firing pro-union workers.

    There are also limits for organizers under current labor law. That means that what worked in auto workers’ labor campaign, for example, may not be possible for other industries.

    “We have a labor law that was designed in the era in the 30s and 40s, when auto plants of 10,000 workers (were organizing),” he said. Starbucks is “split into these small coffee shops of 15 workers. … They need to join together to have any kind of bargaining power against a big employer. But our labor law isn’t structured to help them do that,” Colvin said.

    Service jobs can also be hard to organize due to part-time work and high turnover rates. The same can be said for Amazon warehouses, where there have been pushes for unions.

    According to a Gallup poll, public approval of stronger unions now stands at 67%, down slightly from the 71% last year, but mirroring levels last seen in the 1960s. Creighton and others add that young people in particular are leading today’s charge.

    But the desire to organize can only go so far without policy change, experts say.

    “We’re absolutely at a turning point in people’s consciousness,” Vachon adds. “Whether that translates into actual a change of direction for union density, I think, is going to depend a lot on how that consciousness plays out in the political arena.”

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    The Associated Press

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  • UAW increases pressure on lone holdout GM after reaching tentative pacts with Ford and Stellantis: ‘Everybody’s really fired up’

    UAW increases pressure on lone holdout GM after reaching tentative pacts with Ford and Stellantis: ‘Everybody’s really fired up’

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    The United Auto Workers union has widened its strike against General Motors, the lone holdout among the three Detroit automakers, after reaching a tentative contract agreement with Jeep maker Stellantis.

    The escalated walkout began Saturday evening at a Spring Hill, Tennessee plant, GM’s largest in North America, just hours after the Stellantis deal was reached. Its nearly 4,000 workers join about 14,000 already striking at GM factories in Texas, Michigan and Missouri.

    The UAW did not immediately explain what prompted the new action after 44 days of targeted strikes. The added pressure on GM is substantial as Spring Hill makes engines for vehicles assembled in a total of nine plants as far afield as Mexico, including Silverado and Sierra pickups. One plant already on strike it supplies with engines, in Arlington Texas, makes full-size SUVs including the Tahoe and Suburban. Vehicles assembled at Spring Hill include the electric Cadillac Lyriq, GMC Acadia and Cadillac crossover SUVs.

    “The Spring Hill walkout affects so much of GM’s production that the company is likely to settle quickly or close down most production,” said Erik Gordon, a University of Michigan business professor. The union wants to wrap negotiations with all three automakers so “Ford and Stellantis workers don’t vote down (their) tentative agreements because they want to see what GM workers get.”

    The Stellantis deal mirrors one reached last week with Ford, and saves jobs at a factory in Belvidere, Illinois, that Stellantis had planned to close, the UAW said.

    GM said it was disappointed with the additional strike at the Spring Hill plant, which has 11 million square feet of building space, “in light of the progress we have made.” It said in a statement that is has bargained in good faith and wants a deal as soon as possible.

    In a statement, UAW President Shawn Fain lamented what he called “GM’s unnecessary and irresponsible refusal to come to a fair agreement.”

    “Everybody’s really fired up and excited,” Spring Hill assembly line worker Larry Montgomery said by phone on Sunday. He said workers were taken by surprise by the strike call. “We thought it was going to happen earlier.”

    UAW Local 1853 President John Rutherford in Spring Hill didn’t immediately return a telephone message.

    Fain said in a video appearance Saturday night that 43,000 members at Stelantis would have to vote on the deal — just as Ford workers must. About 14,000 UAW workers had been on strike at two Stellantis assembly plants in Michigan and Ohio, and several parts distribution centers across the country. The company makes Jeep and Ram vehicles.

    The pact includes 25% in general wage increases over the next 4 1/2 years for top assembly plant workers, with 11% coming once the deal is ratified. Workers also will get cost-of-living pay that would bring the raises to a compounded 33%, with top assembly plant workers making more than $42 per hour. At Stellantis, top-scale workers now make around $31 per hour.

    Like the Ford contract, the Stellantis deal would run through April 30, 2028.

    Under the deal, the union said it saved jobs in Belvidere as well at an engine plant in Trenton, Michigan, and a machining factory in Toledo, Ohio.

    “We have reopened an assembly plant that was closed,” Fain said. The deal includes a commitment by Stellantis to build a new midsize combustion-engine truck at the Belvidere factory that was slated to be closed. About 1,200 workers will be hired back, plus another 1,000 workers will be added for a new electric vehicle battery plant, the union said.

    Vice President Rich Boyer, who led the Stellantis talks, said the workforce will be doubled at the Toledo, Ohio, machining plant. The union, he said, won $19 billion worth of investment across the U.S.

    Fain said Stellantis had proposed cutting 5,000 U.S. jobs, but the union’s strike changed that to adding 5,000 jobs by the end of the contract.

    Gordon, the University of Michigan professor, said the Stellantis deal “shows that the car companies feel they are at the mercy of the UAW, that the UAW is not going to give any mercy, and that companies will be co-governed by their boards and the UAW.”

    He said competing companies with non-unionized workforces, which include Toyota and Tesla, “couldn’t have gotten a better year-end gift.”

    Under the Stellantis contract, a top-scale assembly plant worker’s base wage will exceed all increases in the past 22 years. Starting wages for new hires will rise 67% including cost-of-living adjustments to over $30 per hour, it said in a statement. Temporary workers will get raises of more than 165%, while workers at parts centers will get an immediate 76% increase if the contract is ratified.

    Like the Ford agreement, it will take just three years for new workers to get to the top of the assembly pay scale, the union said.

    The union also won the right to strike over plant closures at Stellantis, and can strike if the company doesn’t meet product and investment commitments, Fain said.

    Bruce Baumhower, president of the local union at a large Stellantis Jeep factory in Toledo, Ohio, that has been on strike since September, said he expects workers will vote to approve the deal because of the pay raises above 30% and a large 11% raise immediately. “It’s a historic agreement as far as I’m concerned.”

    Some union members had complained that Fain promised 40% raises to match what he said was given to company CEOs, but Baumhower said that was merely an opening bid.

    “Ultimately, the numbers they did come to agree with is what the UAW wanted,” said Jermaine Antwine, a 48-year-old Stellantis worker who had been picketing the automaker’s Sterling Heights, Michigan, plant Saturday. A team leader in materials at the plant, the Pontiac, Michigan man has has 24 years with the automaker.

    Negotiations between the UAW and Stellantis had intensified Thursday, the day after the Ford deal was announced.

    The union began targeted strikes against all three automakers on Sept. 15 after its contracts with the companies expired. At the peak, about 46,000 workers were on strike against all three companies, about one-third of the union’s 146,000 members at the Detroit three.

    With the Ford deal, which set a template for the other two companies, workers with pensions will see small increases when they retire, and those hired after 2007 with 401(k) plans will get large increases.

    Other union leaders who followed aggressive bargaining strategies in recent months have also secured pay hikes and other benefits for their members. Last month, the union representing Hollywood writers called off a nearly five-month strike after scoring some wins in compensation, length of employment and other areas.

    ____

    Bajak reported from Boston. AP writers John Raby in Charleston, West Virginia, Corey Williams in Sterling Heights, Michigan, and Haleluya Hadero in Jersey City, New Jersey, contributed to this report.

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    Tom Krisher, Frank Bajak, The Associated Press

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  • UAW, Stellantis reach tentative contract deal that follows model set by Ford 

    UAW, Stellantis reach tentative contract deal that follows model set by Ford 

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    Jeep maker Stellantis has reached a tentative contract agreement with the United Auto Workers union that follows a template set earlier this week by Ford, two people with knowledge of the negotiations said Saturday.

    The deal, which still has to be ratified by members, leaves only General Motors without a contract with the union. The agreement could end a six-week strike by more than 14,000 workers at Stellantis assembly plants in Michigan and Ohio, and at parts warehouses across the nation.

    Like workers at Ford, the strikers at Stellantis are expected to take down their picket lines and start returning to work in the coming days, before 43,000 union members vote.

    The people, who asked not to be identified because they are not authorized to speak publicly about the talks, said most of the main points of the deal at Ford will carry over to Stellantis.

    The Ford pact includes 25% in general wage increases over the next 4 1/2 years for top assembly plant workers, with 11% coming once the deal is ratified. Workers also will get cost-of-living pay that would bring the raises to over 30%, with top assembly plant workers making more than $40 per hour. At Stellantis, top-scale workers now make around $31 per hour.

    Like the Ford contract, the Stellantis deal would run through April 30, 2028.

    The deal is also expected to include some news about a now-idled factory in Belvidere, Illinois, which the company had planned to close.

    Democratic U.S. Rep. Bill Foster, who represents Belvidere in Congress, said he’s received indications that electric vehicles will be produced at the site, which will be expanded to include a new battery factory. Stellantis had indefinitely shut down the plant in the spring and laid off the 1,350 employees who worked there.

    Foster said he’s been working with Illinois Gov. J.B. Pritzker’s office and other state and local officials to reopen the facility. State officials are expected to offer the company an incentive package as part of the deal.

    Bruce Baumhower, president of the local union at a large Stellantis Jeep factory in Toledo, Ohio, that has been on strike since September, said he expects workers will vote to approve the deal because of the pay raises above 30% and a large raise immediately.

    “Eleven percent is right on the hood,” he said. “It’s a historic agreement as far as I’m concerned.”

    Some union members have been complaining that Fain promised 40% raises to match what he said was given to company CEOs, but Baumhower said that was UAW President Shawn Fain’s opening bid.

    “Anybody who knows anything about negotiations, you always start out much higher than you think is realistic to get,” he said.

    Jermaine Antwine and other Stellantis workers picketing outside the automaker’s Sterling Heights, Michigan, were excited Saturday after hearing news of a tentative deal.

    “Anytime you reach a tentative agreement, it’s a good thing,” said Antwine, 48, of Pontiac, Michigan. “It shows both sides have come to a mutual agreement somewhere within the numbers they started with.”

    “Ultimately, the numbers they did come to agree with is what the UAW wanted,” said Antwine, who has spent 24 years with the automaker and is a team leader in materials at the Sterling Heights plant.

    Talks were under way with General Motors on Saturday in an effort to reach a similar agreement. Over 14,000 workers at GM remain on strike at factories in Texas, Michigan and Missouri.

    The union began targeted strikes against all three automakers on Sept. 15 after its contracts with the companies expired.

    The union and Stellantis went into intense negotiations on Thursday, the day after the Ford deal was announced, and finalized the agreement on Saturday.

    UAW workers began their targeted strikes with one assembly plant from each company. The strikes were expanded on Sept. 22, adding 38 GM and Stellantis parts warehouses. Assembly plants from Ford and GM were added the week after that, and then the union hit Ford hard, taking down the Kentucky Truck Plant in Louisville, the company’s largest and most profitable factory.

    At the peak, about 46,000 workers were on strike against all three companies, about one-third of the union’s 146,000 members at the Detroit three. Automakers laid off several thousand more as parts shortages cascaded through their manufacturing systems.

    Under the Ford deal, workers with pensions also will see small increases when they retire, and those hired after 2007 with 401(k) plans will get large increases. For the first time, the union will have the right to go on strike over company plans to close factories. Temporary workers also will get large raises, and Ford agreed to shorten to three years the time it takes for new hires to reach the top of the pay scale.

    Other union leaders who followed more aggressive bargaining strategies in recent months have also secured pay hikes and other benefits for their members. Last month, the union representing Hollywood writers called off a nearly five-month strike after scoring some wins in compensation, length of employment and other areas. This summer, the Teamsters also secured new pay hikes and benefits for unionized UPS workers after threatening a nationwide strike at the delivery company.

    ____

    Hadero contributed to this report from Jersey City, New Jersey. AP Staff Writer Corey Williams contributed from Sterling Heights, Michigan.

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    Tom Krisher, Haleluya Hadero, The Associated Press

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  • Ford reaches tentative deal with striking autoworkers, marking a huge breakthrough in a work stoppage that’s cost the industry billions

    Ford reaches tentative deal with striking autoworkers, marking a huge breakthrough in a work stoppage that’s cost the industry billions

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    The United Auto Workers reached a tentative labor agreement with Ford Motor Co., people familiar with the negotiations said. The breakthrough puts pressure on the carmaker’s two chief rivals — which are set to meet with the union Thursday — to reach deals and end a protracted strike that has cost the industry billions of dollars.

    The provisional deal at Ford includes a 25% hourly wage hike and is subject to union leadership approval, according to the people, who weren’t authorized to speak publicly. An announcement is expected around 8 p.m. local time in Detroit.

    Once union leadership signs off, the agreement must also be ratified by Ford’s 57,000 US hourly workers, a process that could take weeks and has an uncertain outcome because expectations have been raised by UAW President Shawn Fain’s call for a transformational deal.

    Pay was one of the last issues to be ironed out during the talks. The union had originally sought a 40% raise and 32-hour work week before reining in its demands. Ford earlier agreed to cost-of-living allowances, converting temp hires and expediting how long it takes workers to get to the top wage rate.

    Subscribe to CHRO Daily, our newsletter focusing on helping HR executive navigate the changing needs of the workplace. Sign up for free.

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    Keith Naughton, David Welch, Gabrielle Coppola, Bloomberg

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  • UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

    UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

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    The United Auto Workers on Friday expanded its strike to 38 General Motors Co. and Stellantis NV auto-parts distribution centers in 20 states, hobbling the two carmakers’ repair networks.

    UAW President Shawn Fain said that the union has made “some real progress” in negotiations with Ford Motor Co.
    F,
    +1.89%
    ,
    which agreed to cost-of-living increases, some job protections and other concessions, and it won’t be striking at additional Ford plants.

    “Ford is showing us they are serious about reaching a deal,” Fain said.

    Nearly 13,000 UAW members have been on strike since last Friday at a Missouri GM plant making GMC Canyons and Colorados, an Ohio Stellantis plant making Jeep Wranglers and Gladiators, and portions of a Michigan Ford plant making Broncos and Rangers.

    Joining them are 3,475 workers at 18 GM fulfillment centers and 2,150 workers at 20 Stellantis centers across the U.S. The workers at the auto-parts distribution centers started to walk off at noon Eastern on Friday.

    GM said that the strike’s “escalation” was “unnecessary.”

    “We have contingency plans for various scenarios and are prepared to do what is best for our business, our customers, and our dealers,” the company said in a statement Friday. “We will continue to bargain in good faith with the union to reach an agreement as quickly as possible.”

    Don’t miss: Tesla may be the winner of the Big Three labor woes

    Stellantis said later Friday that it made a “very competitive offer” on Thursday that included a pay raise of 21% over the four-year life of the contract for some of its full-time hourly workers and a “significant product allocation that allows for workforce stability through the end of the contract.”

    “And yet, we still have not received a response to that offer. We look forward to the UAW leadership’s productive engagement so that we can bargain in good faith to reach an agreement that will protect the competitiveness of our company and our ability to continue providing good jobs,” said Stellantis, which was formed in 2021 with the merger of Fiat Chrysler and France’s Groupe PSA and is headquartered in the Netherlands.

    Meanwhile, Wall Street seemed encouraged by the progress with Ford negotiations.

    That was “encouraging,” suggesting that the Big Three could “perhaps reach a labor agreement sooner than some have been expecting,” measured in days and weeks and not months, Citi analyst Itay Michaeli said in a note Friday. The new strikes at auto-parts distribution facilities would likely immediately impact “a relatively smaller yet high-margin revenue stream” for GM, Michaeli said.

    A potential parts shortage could add pressure on the carmakers to reach an agreement sooner, he said. Compared with the possibility of strike at full-size truck plants, at the heart of the automakers’ profits, however, “today’s update seems somewhat more encouraging.”

    Wedbush analyst Dan Ives called the UAW action “an aggressive move that essentially goes at the hearts and lungs of auto operations for GM and Stellantis.”

    A settlement with Ford is likely over the coming week, Ives said. “The UAW and GM/Stellantis now have crossed the invisible line and the UAW strike is about to get a lot nastier.”

    Since the strike began, the union and the automakers have said they are engaging in constant talks as they try to reach a compromise on a new national contract.

    The union is demanding wage increases, an end to tiers, the restoration of pensions and cost-of-living adjustments and other concessions. Although both the union and companies have claimed progress during talks, GM President Mark Reuss said in a recent opinion piece in the Detroit Free Press that the UAW’s demands are “untenable.” That’s in line with Ford President Jim Farley’s characterization of the union’s wage proposal as “unsustainable” for the company before the strike deadline.

    Fain mentioned Reuss’s “untenable” comment in his update Friday via webcast. GM and Stellantis “are going to need some serious pushing” to meet union demands, he said.

    See: 5 things to know about the UAW strike


    Uncredited

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  • UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

    UAW expands strike to 38 GM and Stellantis auto-parts distribution centers in 20 states

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    The United Auto Workers on Friday expanded its strike to 38 General Motors Co. and Stellantis NV auto-parts distribution centers in 20 states, hobbling the two carmakers’ repair networks.

    UAW President Shawn Fain said that the union has made “some real progress” in negotiations with Ford Motor Co.
    F,
    +1.89%
    ,
    which agreed to cost-of-living increases, some job protections and other concessions, and it won’t be striking at additional Ford plants.

    “Ford is showing us they are serious about reaching a deal,” Fain said.

    Nearly 13,000 UAW members have been on strike since last Friday at a Missouri GM plant making GMC Canyons and Colorados, an Ohio Stellantis plant making Jeep Wranglers and Gladiators, and portions of a Michigan Ford plant making Broncos and Rangers.

    Joining them are 3,475 workers at 18 GM fulfillment centers and 2,150 workers at 20 Stellantis centers across the U.S. The workers at the auto-parts distribution centers started to walk off at noon Eastern on Friday.

    GM said that the strike’s “escalation” was “unnecessary.”

    “We have contingency plans for various scenarios and are prepared to do what is best for our business, our customers, and our dealers,” the company said in a statement Friday. “We will continue to bargain in good faith with the union to reach an agreement as quickly as possible.”

    Don’t miss: Tesla may be the winner of the Big Three labor woes

    Stellantis said later Friday that it made a “very competitive offer” on Thursday that included a pay raise of 21% over the four-year life of the contract for some of its full-time hourly workers and a “significant product allocation that allows for workforce stability through the end of the contract.”

    “And yet, we still have not received a response to that offer. We look forward to the UAW leadership’s productive engagement so that we can bargain in good faith to reach an agreement that will protect the competitiveness of our company and our ability to continue providing good jobs,” said Stellantis, which was formed in 2021 with the merger of Fiat Chrysler and France’s Groupe PSA and is headquartered in the Netherlands.

    Meanwhile, Wall Street seemed encouraged by the progress with Ford negotiations.

    That was “encouraging,” suggesting that the Big Three could “perhaps reach a labor agreement sooner than some have been expecting,” measured in days and weeks and not months, Citi analyst Itay Michaeli said in a note Friday. The new strikes at auto-parts distribution facilities would likely immediately impact “a relatively smaller yet high-margin revenue stream” for GM, Michaeli said.

    A potential parts shortage could add pressure on the carmakers to reach an agreement sooner, he said. Compared with the possibility of strike at full-size truck plants, at the heart of the automakers’ profits, however, “today’s update seems somewhat more encouraging.”

    Wedbush analyst Dan Ives called the UAW action “an aggressive move that essentially goes at the hearts and lungs of auto operations for GM and Stellantis.”

    A settlement with Ford is likely over the coming week, Ives said. “The UAW and GM/Stellantis now have crossed the invisible line and the UAW strike is about to get a lot nastier.”

    Since the strike began, the union and the automakers have said they are engaging in constant talks as they try to reach a compromise on a new national contract.

    The union is demanding wage increases, an end to tiers, the restoration of pensions and cost-of-living adjustments and other concessions. Although both the union and companies have claimed progress during talks, GM President Mark Reuss said in a recent opinion piece in the Detroit Free Press that the UAW’s demands are “untenable.” That’s in line with Ford President Jim Farley’s characterization of the union’s wage proposal as “unsustainable” for the company before the strike deadline.

    Fain mentioned Reuss’s “untenable” comment in his update Friday via webcast. GM and Stellantis “are going to need some serious pushing” to meet union demands, he said.

    See: 5 things to know about the UAW strike


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  • Live updates: United Auto Workers, UAW, go on strike against GM, Ford and Stellantis

    Live updates: United Auto Workers, UAW, go on strike against GM, Ford and Stellantis

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    Striking United Auto Worker Diana Osborne holds a strike sign outside the Ford Michigan Assembly Plant in Wayne, Michigan, U.S. September 15, 2023. Rebecca Cook/Reuters

    Time has run out to avert a strike at America’s unionized automakers.

    The United Auto Workers contracts expired at 11:59 pm ET on Thursday. The contracts covered 145,000 UAW members at the three companies: General Motors, Ford and Stellantis, which builds vehicles under the Jeep, Ram, Dodge and Chrysler brands for North America.

    With no deal reached by the contract expiration, the union said it has started targeted strikes against three facilities – one at each company.

    Here’s what to know now that the strike has begun:

    Where have workers walked off the job?

    UAW President Shawn Fain announced that workers at a GM plant in Wentzville, Missouri; a Stellantis plant in Toledo, Ohio; and a Ford plant in Wayne, Michigan, would go on strike. Workers walked off the job there, picketing outside the plants Friday morning.

    It might not take much to virtually shut down the output from all the companies. They operate a complex network of plants that depend on getting parts from different facilities.

    Slowing or stopping the production of a few engine or transmission plants at each company could be as effective at stopping operations as a full strike at all plants, according to industry experts.

    Key numbers motivating the UAW members:

    $32.32: The hourly wage for most of the UAW members at GM, Ford and Stellantis 

    $18: The starting wage of a UAW worker 

    $15: The starting wage for temporary workers

    Those wages haven’t adjusted for inflation, which rose significantly over the past two years.

    Will the automakers negotiate?

    Based on their latest reports, Ford and GM are now offering a 20% raise during the life of the contract, and Stellantis is offering 17.5%. The union started with a demand for an immediate 20%, and four additional raises of 5% each over the course of a four-year deal.

    GM CEO Mary Barra sent a letter to employees Thursday saying the company’s latest offer now includes a 20% raise, with an immediate 10% pay hike. The lower-paid temporary employees would get $20 an hour, which represents at 20% raise from current $16.67 an hour they receive.

    Ford CEO Jim Farley told CNN that an offer from Ford of a 20% raise over the life of the contract is the most lucrative offer the company has made to the union in the 80 years it has been there. But he said meeting the union’s demands of close to a 40% raise, along with a four-day work week and other benefit improvements, would have been unaffordable.

    Farley blamed the union for the lack of progress in negotiations. But the union has blamed the companies for waiting until the end of August or early September to make their first counteroffers.

    Anger is mounting with Stellantis:

    Stellantis is making greater use of lower-paid temporary workers than the other automakers. Eliminating or at least limiting use of temporary workers is a major issue for the union.

    And there is still more anger at Stellantis after former executives of the company were caught giving bribes to former union officials, says Art Wheaton, director of labor studies at Cornell University’s Industrial and Labor Relations school in Buffalo.

    Many of the members who are angry at the corruption scandal that resulted in two recent UAW presidents going to prison are angry with Stellantis as well.

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  • UAW strike countdown: Union president says targeted strike possible at all Big Three automakers

    UAW strike countdown: Union president says targeted strike possible at all Big Three automakers

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    United Auto Workers President Shawn Fain said Wednesday that autoworkers and the Big Three automakers are still far apart, although negotiations continue, and that the union may strike all of the Big Three at once.

    “We’re keeping all of our options open. An all-out strike is still a possibility,” Fain said during a webcast with members.

    The UAW and Ford Motor Co.
    F,
    +1.53%
    ,
    General Motors Co.
    GM,
    +0.57%

    and Stellantis NV
    STLA,
    -0.42%

    have made progress during their talks but were still far apart on the union’s key priorities, though negotiations will continue until the deadline of 11:59 p.m. Eastern on Thursday, Fain said.

    “For the first time in our history, we may strike all of the Big Three at once,” Fain said, adding that he looked at this time as “our defining moment.”

    He said if no deal is reached, there’s also the possibility of doing “standup strikes” at certain plants, designed to keep the companies guessing. These could escalate and spread elsewhere in order to give the union leverage in bargaining. He told UAW members that they should not strike unless their local is called to do so.

    A targeted strike helps the UAW avoid distributing strike pay, set recently at $500 a week per member, to all 150,000 of its members. But it could have a broader effect.

    “It is possible for strikes at critical parts plants to have much wider implications,” Marick Masters, a business professor at Wayne State University in Detroit, said in an interview with MarketWatch on Wednesday. 

    He noted that the 1998 strike against GM, a work stoppage by 9,200 workers at two of that company’s plants in Flint, Mich., resulted in shutdowns that affected more than 150,000 workers. 

    See: These Ford, GM plants are the most likely strike targets

    Jody Calemine, a senior fellow and director of labor and employment policy at the Century Foundation, a progressive think tank, said Wednesday that the union is employing an interesting strategy.

    “It will turn the screws slowly and probe for weaknesses, and try to get as much movement out of companies as possible while keeping the options to escalate,” he said.

    Calemine said Fain has done a “masterful job” of painting the fight as a “real showdown” between working families and the companies. But he added that “the principal danger for the union would be losing the narrative. Other places would continue to work, or get laid off or locked out.”

    That’s reflected in some of the online comments by UAW members who watched Fain’s update. One worker said on Facebook: “Strike us all or none at all.”

    The UAW president quoted scripture, repeated his calls for unity and said the “strike plan is driven by faith that together we can and will move mountains.”

    Fain said the companies have revised some of their offers: On wages, Ford has put forward a 20% increase over the life of the four-year contract, up from its previous offer of 9%, while GM’s latest offer is 18% and Stellantis’s offer is 17.5%. That’s compared to a wage increase of 40% — or 46% when compounded annually — that the union sought originally and later revised to 36%.

    “Their proposals don’t reflect the massive profits that we’ve generated for these companies,” Fain said.

    The union has pointed out that while the Big Three’s profit has risen 65% over the past four years, and the pay of each of the companies’ chief executives have risen 40%, the UAW top wage rate has risen 6% over that time.

    See: Why United Auto Workers are fighting to end a two-tier system for wages and benefits

    A GM spokesperson said Wednesday that the company continues to bargain in good faith and sent a statement that reads in part: “We are making progress in key areas that we believe are most important to our represented team members. This includes historic guaranteed annual wage increases, investments in our U.S. manufacturing plants to provide opportunities for all, and shortening the time for in-progression employees to reach maximum wages.”

    Ford and Stellantis did not immediately return a request for comment.

    The most recent U.S. autoworkers’ strike was at GM in 2019, which lasted for nearly six weeks and involved about 50,000 workers.

    See: Would a United Auto Workers strike provide an opportunity for Tesla — and push up used-car prices?

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