The United Auto Workers on Wednesday condemned President Donald Trump’s “vulgar” response to a Ford worker who heckled him during a plant tour in Dearborn and said the union is backing the employee after he was suspended.
In a statement, UAW Vice President Laura Dickerson, the union’s Ford Department director, said the worker TJ Sabula, a 40-year-old line worker at the automaker’s Dearborn Truck Plant, is “a proud member of a strong and fighting union” and that the UAW supports his right to speak out.
“He believes in freedom of speech, a principle we wholeheartedly embrace, and we stand with our membership in protecting their voice on the job,” Dickerson said.
Dickerson added that the union will ensure the worker “receives the full protection of all negotiated contract language safeguarding his job and his rights as a union member.”
She continued, “Workers should never be subjected to vulgar language or behavior by anyone — including the President of the United States.”
Video showed Trump responding with a middle finger and by mouthing “fuck you” twice.
U.S. Rep. Rashida Tlaib, D-Detroit, and U.S. Rep. Debbie Dingell, D-Ann Arbor, have also spoken out in support of the worker.
“He’s right. The president is, in fact, protecting pedophiles,” Tlaib said on X Wednesday. “Don’t come to my district and expect a warm welcome. Release the Epstein files!”
It was one of the most fiery moments of the Democratic National Convention. Last Monday night, Shawn Fain, president of the United Auto Workers union, strode onto the stage at the United Center, took off his blazer and revealed a red t-shirt that read “Trump is a scab.”
The crowd, filled with party faithful who were also wearing the same T-shirt, roared with approval and began chanting “Trump’s a scab.” Fain, an electrician who worked in an Indiana automotive parts factory, is a throwback to the more bare-knuckled archetype of labor leaders. He exalted Democratic nominee Kamala Harris as a “fighter for the working class” and skewered Trump as a “lapdog for the billionaire class.”
But while Fain evoked the combative labor bosses of an earlier era, behind that vintage style was a state-of-the-art, tech-savvy campaign machine poised to capitalize on the moment. Before long, the digital foot soldiers of the Harris-Waltz team, along with the UAW, had plastered the Fain video across social media, garnering millions of views, thousands of the bright red t-shirts had been sold, and the word “scab” was trending online.
That bit of choreographed theater reflected the methodical planning and preparation by the Harris-Walz campaign to find every opportunity to amplify labor’s message and, just as importantly, to burnish its own pro-union credentials with the labor leaders they are aggressively courting. And for good reason — the union vote could be decisive in 2024.
Aware that Donald Trump’s strong performance with union households in battleground states like Michigan, Pennsylvania, and Wisconsin may have cost Hillary Clinton the election in 2016, the Harris campaign understands that blue-collar voters may emerge as this campaign season’s version of the suburban soccer mom – a pivotal demographic for victory.
“There are 2.7 million union members in the battleground states,” wrote Julie Chavez Rodriguez, the Harris-Walz campaign manager, in an Aug. 8 memo shared with CBS News. “That means something when roughly 45,000 votes in key states decided the election four years ago.”
Last week, Democratic Party convention planners overlooked no detail in wooing labor. A record number — 20% — of Democratic delegates were union members; all delegation members from the 50 states and territories stayed in union hotels; almost all of the physical work at the convention drew from union labor, from building the sets to the electrical work, as well as the makeup for speakers and performers. And raucous callouts to unions were strategically placed in many of the celebratory roll call votes.
The Harris campaign sees its tight collaboration with labor as a force multiplier.
“We are in a fragmented media environment and it’s very hard to reach undecided voters,” one campaign official said. “Unions are the ultimate validator: they can break through the noise and misinformation and lay out the facts on our record vs. Trump.”
Once a staple of the Democratic Party, labor union members have splintered in the Trump era – with the Republican former president proving effective at drawing those traditional Democratic voters across the aisle. Backstage at the convention hall, it was clear the Harris campaign was employing old-school, hardball tactics to try to counter those gains.
When another prominent union boss, Teamsters president Sean O’Brien, addressed the Republican convention in Milwaukee late last month, Democrats took notice. O’Brien praised Trump as “one tough SOB” and said he “didn’t care about being criticized” for being the first Teamsters boss to speak at a Republican convention in its 121-year history.
But two weeks later, Trump was yukking it up with Elon Musk in a conversation on X about firing workers. The Republican nominee praised Musk as “the greatest cutter,” telling him “look at what you do, you walk in, you say ‘you want to quit?’ I won’t mention the name of the company, but they go on strike, and you go: ‘You’re all gone!’”
O’Brien quickly engaged in damage control, issuing a statement to Politico calling Trump’s remarks “economic terrorism.” But the Harris campaign and its labor allies saw an opportunity for payback. The next day, the UAW’s Fain filed a complaint against both Trump and Musk with the National Labor Relations Board charging them with unfair labor practices. The Harris campaign was delighted and urged Fain to hit the airwaves to talk about their move, according to a source close to Fain.
O’Brien scrambled for an opportunity to get back into the Democrats’ good graces. He asked to speak at their convention, but the Harris campaign froze him out, according to a labor source. Campaign officials didn’t even respond to his request. Then, in a move that appeared to be meant to undermine O’Brien, the Harris campaign invited multiple rank-and-file Teamsters members to participate in the convention festivities without their leader.
One labor source who asked not to be identified in order to speak freely about the episode called it “a snub.” Others suggested it was meant to send a gentle message that there could be consequences for backing Trump.
“They weren’t throwing a ball at his head, but maybe slightly inside to make him take a step back from the plate,” said Eddie Vale, a political and labor strategist who has represented unions including the AFL-CIO. A Harris campaign source simply said that it would not have made sense for O’Brien to address the convention, given that he was not prepared to endorse the Democratic ticket.
And yet, at the close of the convention, officials with Harris’ campaign said they were keeping the door open for a possible rapprochement with the Teamsters leadership. In what one labor source called “virtue signaling,” Harris accepted an invitation to meet with the union’s executive board, which is expected to include O’Brien.
“Both sides want it known that they are continuing to talk to each other,” the source said.
Harris faces a tougher challenge in courting union support than her predecessor. President Biden’s close relationship with unions took shape after years of cultivating his image as “Scranton Joe,” a politician whose middle-class roots helped him understand the plight and aspirations of workers. But Harris, a more cosmopolitan personality from California’s Bay Area, has had to do more work to define herself as a natural ally of the working class.
In 2020, Mr. Biden won 57% of the union vote in the key rust-belt states, compared to Trump’s 40%. Harris, by most accounts, will have to do at least as well as Biden to prevail in this election.
Trump has also been wooing big labor. In January, he participated in the Teamsters Rank-and-File Presidential Roundtable (Mr. Biden visited Teamsters headquarters a few weeks later) and heaped praise on the union, noting that many of his big projects have been built with Teamsters labor. And in a vintage bit of transactional politics, he vowed to give unions leaders a “seat at the table” if they endorse him in the election.
The Harris team is being strategic about its courtship of labor. At last week’s convention, speakers seemed to take every opportunity to point out that Harris had worked at a McDonald’s when she was in college, and the nominee herself also brought it up during her acceptance speech. Harris spoke sentimentally, but tactically, about the modest East Bay neighborhood she grew up in, calling it “a beautiful working-class neighborhood of firefighters, nurses and construction workers.”
And almost as soon as Harris had become the presumed nominee last month, her campaign sent her on a battleground state tour where she met with rank-and-file union members, including UAW workers in Detroit. The campaign has emphasized Harris’ pro-union record, pointing out that she walked the picket line with union strikers in 2019 during her first presidential run and that as vice-president, she broke the tie in the Senate that allowed passage of the Butch Lewis Act, which restored the pensions of more than a million workers.
Then there was Harris’ selection of Minnesota Gov. Tim Walz as her running mate. His plain-speaking Midwestern style, football coach persona and worn flannel shirts represent an appeal to lunch-pail voters. A Harris campaign official said it was no coincidence that Walz’s first solo trip of the campaign was to rally members of the American Federation of State, County and Municipal Employees at their international convention in Los Angeles. And not insignificantly, Walz, a former high school teacher, is himself a card-carrying union member of a union — the American Federation of Teachers.
Ultimately, the labor vote is likely to follow the candidate workers feel can best address the economic of the working class. Harris will almost certainly win the labor vote, but what will really matter is Trump’s ability to cut into her margins with economic appeals to working-class voters, likely on immigration and trade.
Robert Forrant, a historian of the American labor movement, says the Harris campaign recognizes this, and it’s making those economic concerns part of her message.
“They’ve started to talk about how inflation really mattered, and you can’t pretend it doesn’t.” But he said the Harris campaign still needs to do more, like acknowledge that working people have increasingly had to hold down multiple jobs to get by, a reality that has third-order effects, including damaging family structures. “You have to thread the needle when appealing to the union vote,” Forrant said.
Daniel Klaidman, an investigative reporter based in New York, is the former editor-in-chief of Yahoo News and former managing editor of Newsweek. He has over two decades of experience covering politics, foreign affairs, national security and law.
The United Auto Workers on Tuesday filed federal labor charges against former President Donald Trump and Tesla CEO Elon Musk, accusing the duo of trying to “intimate and threaten” workers during an interview on the latter’s social media platform X.
Trump returned to X on Monday night for an interview with Musk, who has voiced support for the Republican presidential candidate. The two-hour conversation between the two billionaires, which started more than half an hour late due to glitches, ranged from Trump’s views about what he called a “zombie apocalypse” of immigration to his praise for Musk’s labor practices.
During the interview, the pair advocated for the firing of striking workers, the UAW claimed in a statement. Under the National Labor Relations Act, it’s illegal to fire striking workers as well to threaten to terminate workers who go on strike.
“I mean, I look at what you do,” Trump told Musk on Monday night. “You walk in, you say, ‘You want to quit?’ They go on strike. I won’t mention the name of the company, but they go on strike, and you say, ‘That’s okay. You’re all gone. You’re all gone. So every one of you is gone.’”
Trump made the remarks in response to Musk pitching himself as playing a potential role in a future “government efficiency commission,” with the Republican nominee calling Musk “the greatest cutter.”
Musk did not directly respond to Trump’s talk about striking workers, pivoting instead to government spending.
Filed with the National Labor Relations Board, the UAW’s complaint targets Musk as a representative of Tesla, the electric car company where Musk serves as CEO and is its biggest individual shareholder.
Musk’s SpaceX has also challenged the structure of the NLRB, with the rocket maker’s lawsuit now with a federal appeals court in Texas.
The UAW, which been trying to organize Tesla employees, has also recently endorsed Vice President Kamala Harris’ run for the White House, while members of the union met with the Democratic presidential nominee in Michigan last week.
Shawn Fain: “Disgusting, illegal” comments
In a statement, UAW President Shawn Fain decried the comments, saying “Both Trump and Musk want working class people to sit down and shut up, and they laugh about it openly.” He added, “It’s disgusting, illegal and totally predictable from these two clowns.”
The AFL-CIO, a federation of 60 national and international labor unions, offered its own take on the exchange on X, posting: “Scab recognize scab.”
The Trump campaign dismissed the UAW action as a “shameless political stunt,” with Trump campaign senior advisor Brian Hughes accusing the union of trying to erode what he called “Trump’s overwhelming support among American workers.”
Musk, who has said he previously voted Democratic, has thrown his weight — and his wealth — behind Trump. Tesla did not immediately respond to a request for comment.
A United Auto Workers rally in downtown Detroit last year.
The United Auto Workers (UAW) union has filed federal labor charges against former President Donald Trump and billionaire Elon Musk, accusing them of attempting to intimidate workers who engage in legally protected activities, such as striking.
The charges come in the wake of a rambling, disorderly conversation between Trump and Musk on the social media platform X, formerly known as Twitter.
On Monday evening, Trump and Musk participated in a live audio discussion that was marred by technical difficulties but managed to attract more than a million listeners. During the conversation, both men appeared to advocate for the illegal firing of workers who participate in strikes.
“I mean, I look at what you do,” Trump said to Musk. “You walk in, you say, ‘You want to quit?’ They go on strike, I won’t mention the name of the company, but they go on strike and you say, ‘That’s OK, you’re all gone. You’re all gone. So, every one of you is gone.’”
Under the National Labor Relations Act, it is illegal to fire workers for participating in a strike or to threaten such actions.
The UAW argues that the comments made by Trump and Musk violate these federal protections and undermine workers’ rights.
UAW President Shawn Fain condemned the statements from Trump and Musk, saying they reflect a broader pattern of anti-worker sentiment.
“When we say Donald Trump is a scab, this is what we mean,” Fain said. “When we say Trump stands against everything our union stands for, this is what we mean. Donald Trump will always side against workers standing up for themselves, and he will always side with billionaires like Elon Musk, who is contributing $45 million a month to a Super PAC to get him elected. Both Trump and Musk want working-class people to sit down and shut up, and they laugh about it openly. It’s disgusting, illegal, and totally predictable from these two clowns.”
The UAW’s decision to file charges highlights ongoing tensions between labor unions and corporate leaders, as well as the role of high-profile figures such as Trump and Musk in shaping public discourse around labor rights.
The charges will likely proceed through the legal system, where the National Labor Relations Board will determine whether any violations of the law occurred.
This development comes at a critical time for the UAW, which continues to advocate for better working conditions and fair wages in industries across the country. As the situation unfolds, the union and its members are watching closely to see how the allegations against Trump and Musk are addressed by the authorities.
Trump’s remarks are an attack on many of his supporters, a disproportionate number of whom are blue-collar workers.
The United Auto Workers union announced it reached a last-minute tentative agreement with truck and bus manufacturer Daimler Truck, averting a potential strike of more than 7,000 workers.
The union struck a four-year agreement with the German company on Friday evening, just before the expiration of the previous contract, which was enacted six years ago. It covers workers at various plants in North Carolina – where Daimler makes Thomas Built Buses, Freightliner and Western Star trucks – as well as distribution centers in Atlanta and Memphis, Tennessee.
In an online speech, UAW President Shawn Fain said the new contract includes wage increases of more than 25% over the next four years, including a 10% raise after the deal is ratified. Fain said the deal also includes the end wage tiers at the company, as well as cost-of-living adjustments and “profit sharing for the first time in Daimler history.”
“When that deadline came closer, the company was suddenly ready to talk,” Fain said. “So tonight, we celebrate.”
Union members still need to approve the agreement.
“The UAW members at these locations will now be asked to vote on the new contracts, and we hope to finalize them soon, for the mutual benefit of all parties,” Daimler said in a statement. The heavy-duty manufacturer was once the same company as Mercedes-Benz before it split off in 2021.
The Daimler deal comes amid a broad campaign by the UAW to organize southern auto assembly plants following lucrative new contracts in a confrontation with Detroit’s automakers. Last week, 73% of those voting at a Volkswagen AG plant in Chattanooga, Tennessee, chose to join the UAW. It was the union’s first in a southern assembly plant owned by a foreign automaker.
New York (CNN) — For five decades, the southern United States has been an attractive location for foreign automakers to open plants thanks to generous tax breaks and cheaper, non-union labor.
Now, the United Auto Workers has dealt a serious blow to that model: winning a landslide union victory after decades of failing to unionize automakers in the South.
The UAW easily won a historic victory Friday at Volkswagen’s plant in Chattanooga, Tennessee, with 73% of workers voting in favor of the union. It’s the UAW’s first win in trying to represent workers at a foreign car manufacturing plant in the South.
While a single win won’t alter the union landscape in the South overnight, labor experts say the Tennessee victory may be a turning point in the least unionized part of the United States. (South Carolina and North Carolina have the lowest union rates in the US; Louisiana is the sixth-lowest.)
For one, it may provide momentum for current union drives at foreign auto plants in the South and spill over into organizing efforts in other industries, said Stephen Silvia, a professor at American University and author of “The UAW’s Southern Gamble: Organizing Workers at Foreign-Owned Vehicle Plants.”
The UAW’s win at Volkswagen “itself will not realign the South. But it’s an important building block for southern realignment,” Silvia said, adding that the win “challenges the southern growth model.”
The UAW has announced an effort to organize workers at 13 carmakers, including foreign automakers such as Volkswagen, Mercedes, BMW, Honda, Hyundai, Mazda, Nissan, Subaru, Toyota and Volvo. The union is also aiming to organize three American EV makers – Tesla, Rivian and Lucid. Of those three, however, only Tesla has a plant in the South, in Texas.
The first test of the UAW’s momentum comes next month, when a union vote at a Mercedes plant in Vance, Alabama, is set to be completed. The plant has about 6,000 hourly workers.
But the South’s history of difficult structural dynamics for unions is entrenched. And union wins in the auto industry are likely to generate significant political backlash.
South Carolina Gov. Henry McMaster said earlier this year he would “fight” unions “to the gates of hell,” and Alabama Gov. Kay Ivey said “the Alabama model for economic success is under attack” by unions.
“Unions are an existential threat to the political economy of the South,” said Erica Smiley, the executive director of progressive advocacy group Jobs with Justice. Union members are more active politically, studies show, and likelier to push for pro-worker policies. This poses a challenge to the anti-union political and business consensus of the region.
Auto industry moves to the non-union South
Detroit and other industrial cities in the North dominated the auto industry for much of the 20th century, but the US auto industry has increasingly shifted to the South in recent decades.
Nissan opened a plant in Smyrna, Tennessee, in 1983, followed by BMW opening in Spartanburg, South Carolina, in 1994. Mercedes-Benz came to Vance, Alabama, in 1997. Honda moved to Lincoln, Alabama, in 2001. And Volkswagen, Toyota, Hyundai and Kia built factories the South in the 2000s.
Since 1990, the South’s share of auto jobs has doubled from around 15% to 30% today, according to S&P Global Market Intelligence. Meanwhile, the Midwest’s share has declined from 60% to 45%.
The transition to electric vehicles is poised to speed up this trend. Mostly nonunion EV jobs and manufacturing investments are surging in Southern states led by Republicans. The region has picked up 66% of planned EV jobs, according to a report by the Environmental Defense Fund.
Part of the reason foreign automakers have moved to the South is to escape unions. Before Friday’s win, the highest profile union election held in the South in recent years was the attempt to organize Amazon warehouse workers in Alabama in 2022. The union lost two separate votes there, although there is a hearing set for later this week about objections to that election that could order a third vote or certify the union’s loss.
Every state in the South has a “right to work” law, which allows workers to opt out of paying fees to a union at their workplace, even if they benefit from union bargaining agreements, undercutting a union’s financial resources to strategize and collectively bargain.
Southern political leaders have also used tax breaks and other subsidies to draw auto investments to states. These incentives have been predicated on companies keeping out unions.
“In the South, you’ve had the political and economic establishment that have built an economic model based on low wages and little worker voice,” Silvia said. “When UAW has tried to organize, they’ve tried to fight against it.”
GOP leaders have stepped in to block unions and preserve this model.
Tennessee Gov. Bill Lee in 2019 visited Volkswagen’s plant in Chattanooga to encourage workers to reject the union, and former South Carolina Gov. Nikki Haley said in 2015 she was a “union buster” when recruiting automakers to the state.
Southern states such as Georgia have passed laws threatening to cut off subsidies to companies that voluntarily recognize unions.
Overcoming union opposition
A major deterrent to unionizing efforts in the South is the ties between unions and the Democratic party.
Rank-and-file workers who supported the UAW effort at the Volkswagen plant in Chattanooga told CNN that one problem they faced when trying to drum up union votes was their co-workers’ dislike of Biden — who supported the union in its auto strike last year and whom the union has endorsed.
But the Volkswagen win, said UAW President Shawn Fain to CNN, shows that politics are not an insurmountable obstacle when it comes to organizing in the South.
“Trump will win Tennessee by a pretty big margin, I would guess. You know what, we just won by 73% in Tennessee,” Fain said. “I’m not worried about the political aspect of this, because our campaign is about bringing justice to workers.”
In the wake of the UAW’s victory at Volkswagen, labor advocates expect to see other states pass measures to deter union efforts — but workers may be energized.
“I think we’re going to see a lot of efforts to revitalize labor in the South. The gains in Chattanooga won’t stay in Chattanooga,” said Harley Shaiken, a labor historian at the University of California, Berkeley.
Erica Smiley from Jobs with Justice said “unions must stop seeing the South as no man’s land” where they can’t win and invest in efforts to organize southern industries.
A new Wall Street Journal poll shows former President Donald Trump leading President Biden in several key battleground states. Robert Costa, CBS News chief election and campaign correspondent, and Jessica Taylor, Senate and governors editor for Cook Political Report, join “America Decides” to break down the numbers.
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Earlier this month, President Joe Biden paid a visit to the critical battleground state of Michigan. He came to Detroit – Motor City – to court union voters. Mr. Biden had just won the United Auto Workers’ endorsement, and he was eager to share the spotlight with UAW president Shawn Fain.
Fain told the crowd, “You know what the hell’s going to happen if this man’s not president, because we’ve seen what happens. Labor went backwards.”
“You all are the ones that brung me to the dance,” Mr. Biden told union workers. “And I never left it.”
Fain wants to ramp up the fight over unions and workers’ rights, not just with auto companies, but with corporate leaders nationwide.
Asked if he stood with Fain, President Biden said, “Absolutely, positively. Look, I don’t have anything against corporations. They’ve just got to start paying their fair share. The idea we have a thousand billionaires who are paying an average of 8.2 percent in federal tax? Come on, man!”
United Auto Workers President Shawn Fain and President Joe Biden, with CBS News chief election & campaign correspondent Robert Costa.
CBS News
Last September, Mr. Biden was the first sitting president to walk a union picket line, showing his support for the unprecedented six-week walk-out at all of the Big Three car makers. He told the workers, “Wall Street didn’t build this country; the middle class built this country.”
“This is what happens when workers get power,” Fain said. “When the workers got this union back, they were able to elect their top leadership for the first time in history, and we saw massive change in a short amount of time, and we’re gonna continue to do that.”
“You’ve shaken up the place,” said Costa.
“Well, that’s what they elected me for.”
UAW President Shawn Fain.
CBS News
Fain was the first UAW president elected directly by membership, and within months he led shutdowns on assembly lines at Ford, GM, and Chrysler/Jeep parent company Stellantis. He also broke with tradition: while negotiations usually happened behind closed doors, Fain broadcast updates via Facebook to union members and the world at large. In one video he exclaimed, “All three companies wanted concessions on profit sharing. And we said, ‘Hell, no.’”
Fain explained, “It was important to us to be, you know, open and transparent with the membership, not just in bargaining, but it’s in everything we’re doing.”
The union’s new contracts not only make up for pay cuts workers took more than 15 years ago during the great recession; they provide a foothold for the union in Detroit’s electric vehicle future.
Ford CEO Jim Farley recently warned the contracts will have “a business impact” on the automaker. Fain says impact is what he’s all about.
A native of Kokomo, Indiana, the 55-year-old came up the ranks as an electrician, and still carries his grandfather’s union pay stub in his pocket. “I remember my grandfather talking about a 110-day strike at Chrysler back in 1950 to get pensions,” he said.
“If you would have asked me when I was in high school, ‘Are you gonna be an electrician one day?’ I would have laughed and like, are you kidding me?”
He recalled the difficulties of being on unemployment: “When my first daughter was born, we were getting WIC. It was a humbling experience. But experiences like that, they laid a groundwork for me for what was important in life and why things mattered and why wages mattered, why having good jobs mattered, why having good benefits mattered.”
From Hollywood actors and writers, to hotel and hospital workers, even neighborhood baristas, last year’s labor protests were like a dam bursting. From 2021 to 2023 the Big Three automakers made more than $100 billion in profits (according to the Economic Policy Institute), while average auto worker pay has fallen nearly twenty percent from pre-recession levels.
Fain said, “What gave us power at the bargaining table was the company saw how eager members were to go out on strike, and when we were calling plants to go out on strike, that plants that didn’t get called were disappointed. It was just a matter of when and how long it was gonna take, because I knew our members had the resolve to make it happen.
“This is our generation’s defining moment,” he said.
According to Kate Bronfenbrenner, a professor at Cornell University’s School of Industrial and Labor Relations, “If unions don’t run the kind of campaigns that force employers to come to the table and bargain with them, because the cost of not bargaining with them is greater than the cost of bargaining with them, they aren’t going to be able to build their power and organize more workers. Workers aren’t stupid; they know that the companies weren’t going to give them that bump.”
Bronfenbrenner notes the American public sided overwhelmingly with striking autoworkers: “They had given huge concessions in 2007. Now the companies were making money and they weren’t sharing it. They had risked their lives during COVID. And so, [Fain] did a very good job of getting the public to see those issues. This was about something that was fair, and this was just, and that we’re living in a time where corporations are taking too much.”
Fain may come across as mild-mannered, but he also rails against the “billionaire class,” and has even worn T-shirts that say “Eat the Rich.”
“I don’t think billionaires should exist,” he said. “No one needs that much money. I think it’s inhumane. Pick any city, walk around, you know, you see people starving, people without basic necessities. There’s no excuse for that. And it’s not because people are lazy or don’t want to work. The billionaires that keep amassing more and more wealth, so they can build rocket ships and do whatever the hell they want to do, that does nothing for humanity.”
“Your critics say that’s class warfare,” said Costa.
“Yeah, class warfare has been going on in this country for the last 40 years – the billionaire class has been taking everything and leaving the working class with nothing,” Fain replied. “Whenever working class people ever step up and say, ‘This is wrong, we want it to stop,’ all of a sudden, Oh, it’s class warfare. It’s the end of the world.“
If there is a labor war being waged in America, the front lines are in the non-union factories of the South and Midwest. Volkswagen’s plant in Chattanooga, Tennessee, builds their latest electric cars – and it’s a top target of UAW organizers.
Fain told workers in Tennessee, “When the company uses fear, we’re gonna come back with facts. And these are the facts: You know, Volkswagen made $78 billion since 2020 in profit. They paid out $24 billion in dividends to corporate executives and shareholders. The CEO of Volkswagen makes $12 million a year.”
United Auto Workers president Shawn Fain speaks outside Volkswagen’s plant in Chattanooga, Tennessee.
Fain explained coming into a more hostile territory: “We don’t ever rest,” he said. “Workers deserve justice.”
“Sunday Morning” was there in December when workers tried to petition management for a meeting with organizers.
In a statement to “Sunday Morning,” Volkswagen Group of America said: “Volkswagen is proud of our 5,500 employees who power our world-class assembly plant in Chattanooga. Our culture has been built through frequent, transparent, and two-way dialogue with our people. We respect their democratic right to determine who should represent their interests in the workplace without interference, intimidation, or misinformation.”
But Volkswagen worker Shaun Lawler says skepticism of the UAW runs deep in the community. When asked how his family views unions, he replied, “They don’t see it as a good opportunity; they see layoffs.”
What do they call unions? “They call them communist,” Lawler said.
Still, after the UAW’s success last year, 13-year Volkswagen employee Vicky Holloway says the union’s time has come. “I really think we have a chance this time,” she said. “Unless your eyes are just closed and your ears, and you just don’t hear anything, then you realize that we do need a union.”
The UAW now says a union vote in Chattanooga is approaching. It will be another defining moment for Shawn Fain – and for the American labor movement.
“You know, organized labor led the way for the American dream,” he said. “And that’s fallen by the wayside over the last 40 years. And it is our obligation to humanity to change that.”
And, he adds, he’s not going to give up: “Not at all. That’s the mission.”
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Story produced by Ed Forgotson. Editor: Ed Givnish.
Last year unionized auto workers who walked out at the big three car makers won generous contracts, making up for pay cuts they’d taken during the Great Recession. It marked a comeback for the labor movement, and a notable achievement for United Auto Workers president Shawn Fain, who came up the ranks as an auto plant electrician, and still carries his grandfather’s union pay stub in his pocket. CBS News chief election & campaign correspondent Robert Costa talks with Fain about the increase in public support for unions; and about efforts to organize auto workers in Southern states that are traditionally less friendly to unions.
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Honda, Hyundai and Volkswagen are illegally trying to intimidate workers organizing with the United Auto Workers at three U.S. manufacturing plants, the labor union said Monday in announcing that it has filed a complaint accusing the car makers of unfair labor practices.
Honda workers are being targeted and surveilled by management for pro-union activity at the company’s plant in Greensburg, Indiana, while VW executives have confiscated and destroyed pro-union materials at the company’s plant in Chattanooga, Tennessee, according to the UAW. At Hyundai’s plant in Montgomery, Alabama, managers have unlawfully banned pro-union materials in non-work areas outside of normal working hours, the union claims.
“These companies are breaking the law in an attempt to get autoworkers to sit down and shut up instead of fighting for their fair share,” UAW President Shawn Fain, who was scheduled to livestream an update to non-union autoworkers Monday at 5 p.m. Eastern, said in a statement.
Volkswagen said it takes such claims seriously and that it would investigate accordingly. “We are committed to providing clear, transparent and timely information that helps educate our employees and managers on their legal rights and obligations,” a spokesperson told CBS MoneyWatch in an email.
“We are filing an unfair labor practice charge against Honda because of management illegally telling us to remove union stickers from our hats, and for basically threatening us with write-ups,” Honda worker Josh Cupit said in a video released by More Perfect Union, a labor advocacy group.
Honda and Hyundai did not immediately respond to requests for comment.
The companies are among 10 foreign automakers the UAW said in November it would seek to unionize after the labor group reached contract agreements with Detroit’s Big Three automakers. Although the trio are based overseas, the automakers — as well as BMW, Nissan, Mazda, Mercedes, Subaru, Toyota and Volvo — have manufacturing plants in the U.S. The UAW said its union drive would largely focus on factories in the South, where its recruiting efforts have so far yielded little success.
The United Auto Workers union said its next target is to unionize factory workers at Lucid, Rivian, Tesla and 10 foreign automakers, a move that comes after it garnered new employment contracts from Detroit’s Big Three automakers.
BMW, Honda, Hyundai, Nissan, Mazda, Mercedes, Subaru, Toyota, Volkswagen and Volvo are based overseas but all have manufacturing operations in the U.S. Because these companies have brought in billions of dollars in profit over the past decade, their hourly factory workers deserve to make more money, UAW President Shawn Fain said in a video Wednesday.
Also on the union’s list are U.S. factories run by electric vehicle sales leader Tesla, as well as EV startups Rivian and Lucid. All three are U.S.-based companies.
“To all the autoworkers out there working without the benefits of a union, now it’s your turn,” he said, urging autoworkers to join the UAW’s membership drive campaign.
Tesla and other dozen automakers targeted by the UAW have long used non-unionized workers at their plants. The UAW said its drive will focus largely on factories in the South, where the union has had little success in recruiting new members. Currently, the UAW has about 146,000 members.
Still, Fain said thousands of non-unionized workers have contacted the UAW and asked to join the organization ever since the union ratified pay raises for employees at Ford, General Motors and Stellantis (the parent company of Chrysler, Dodge, Jeep, and Ram).
The union said that Toyota’s 7,800-worker assembly complex in Georgetown, Kentucky, is among factories with the strongest interest in the union. A Toyota spokesman declined to comment.
The organizing drive comes after a six-week series of strikes at factories run by Ford, General Motors and Jeep maker Stellantis that ended with new contracts. Under the contracts, top assembly plant worker pay will rise 33% by the time the deals expire in April of 2028.
The new contracts also ended some lower tiers of wages, gave raises to temporary workers and shortened the time it takes for full-time workers to get to the top of the pay scale.
Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.
United Auto Workers union members have voted to approve a new contract with General Motors, making the company the first Detroit automaker to get a ratified deal that could end a contentious and lengthy labor dispute.
A vote-tracking spreadsheet on the union’s website shows that with all local union offices reporting, the contract passed by just over 3,400 votes, with 54.7% of the 46,000 UAW members at GM voting in favor.
A union spokesman on Thursday confirmed that the spreadsheet had the official totals. The outcome was closer than expected after the UAW’s celebrations of victories last month on many key demands that led to six weeks of targeted walkouts against GM, Ford and Stellantis, the maker of Jeep, Dodge and Ram vehicles. On Thursday the contract had a big lead in voting at Ford and Stellantis, with 66.7% in favor at Ford and 66.5% voting for it at Stellantis.
Voting continues at Ford through early Saturday with only two large factories in the Detroit area and some smaller facilities left to be counted. At Stellantis, three Detroit-area factories were the only large plants yet to vote, with tallies expected to be complete by Tuesday.
What union members will get
The three contracts, if approved by 146,000 union members, would dramatically raise pay for autoworkers, with increases and cost-of-living adjustments that would translate into a 33% wage gain. Top assembly plant workers would earn roughly $42 per hour when the contracts expire in April of 2028.
Voting continues at Ford through early Saturday, where 66.1% of workers voted in favor so far with only a few large factories still counting. At Stellantis, workers had voted 66.5% in favor of the deal as early Thursday, with some large factories yet to finish casting ballots, according to a vote tracker on the UAW website.
The closer-than-expected outcome comes as some GM workers said that longtime employees were unhappy that they didn’t get larger pay raises like newer workers, and they wanted a bigger pension increase.
Keith Crowell, the local union president in Arlington, said the plant has a diverse group of workers from full- and part-time temporary hires to longtime assembly line employees. Full-time temporary workers liked the large raises they received and the chance to get top union pay, he said. But many longtime workers didn’t think immediate 11% pay raises under the deal were enough to make up for concessions granted to GM in 2008, he said.
That year, the union accepted lower pay for new hires and gave up cost of living adjustments and general annual pay raises to help the automakers out of dire financial problems during the Great Recession. Even so, GM and Stellantis, then known as Chrysler, went into government-funded bankruptcies.
“There was something in there for everybody, but everybody couldn’t get everything they wanted,” Crowell said. “At least we’re making a step in the right direction to recover from 2008.”
2008 concessions
Citing the automakers’ strong profits, UAW President Shawn Fain has insisted it was well past time to make up for the 2008 concessions.
President Joe Biden hailed the resolution of the strike as an early victory for what Biden calls a worker-centered economy. But the success of the tentative contracts will ultimately hinge on the ability of automakers to keep generating profits as they shift toward electric vehicles in a competitive market.
Thousands of UAW members joined picket lines in targeted strikes starting Sept. 15 before the tentative deals were reached late last month. Rather than striking at one company, the union targeted individual plants at all three automakers. At its peak about 46,000 of the union’s 146,000 workers at the Detroit companies were walking picket lines.
In the deals with all three companies, longtime workers would get 25% general raises over the life of the contracts with 11% up front. Including cost of living adjustments, they’d get about 33%, the union said.
The contract took steps toward ending lower tiers of wages for newer hires, reducing the number of years it takes to reach top pay. Many newer hires wanted defined benefit pension plans instead of 401(k) retirement plans. But the companies agreed to contribute 10% per year into 401(k) plans instead.
Although the United Auto Workers framed its tentative agreement last month with Detroit’s Big 3 automakers as a huge win for labor, a growing number of union members seem to think otherwise.
Rank-and-file GM workers from 11 different UAW chapters have rejected the automaker’s proposal in recent days, according to a vote tracker maintained by the UAW. Members from another three chapters have rejected Ford’s proposed labor contract, while two have voted no on the Stellantis deal.
The flurry of rejections came after UAW members spent six weeks on strike at the companies. It’s typical for large unions to see a few chapters oppose a new contract because labor deals cannot satisfy everyone, labor experts told CBS MoneyWatch. UAW members at Mack Truck rejected the company’s tentative agreement last month and have remained off the job. In 2021, UAW members at John Deere also voted no on a proposed labor deal.
Union leaders said last month they reached an agreement with the Big 3 that increases wages across a four-and-a-half year deal and provides cost of living adjustments. The deals also eliminate the two-tier system at a handful of Big 3 plants, but not all of them. The tentative agreements are making their way across UAW chapters, where members must vote to approve them. So far, most chapters have given the deals a thumbs up.
In general, some opposition to a proposed labor contract indicates that members are engaged and that there’s healthy debate about the offer, said Rebecca Kolins Givan, a labor relations expert and professor at Rutgers.
But what’s happening with the Big 3 is slightly different. Autoworkers who voted no are likely pushing for better retiree health care benefits and a defined benefits pension plan, Givan said.
Autoworkers are also rejecting those the agreements because they still have an issue with the automakers’ two-tier wage system, said Lynne Vincent, a business management professor at Syracuse University.
“The tier system was a concern for union members from the start, and many of them still want tiers to be shed,” Vincent said.
The UAW declined to comment on chapters that have rejected the tentative agreements. UAW President Shawn Fain said during a video address last week that the labor group had squeezed every penny it could out of the automakers.
“What happens next is not up to us — it’s up to you, the membership,” Fain said. “I don’t decide your vote. The executive board doesn’t decide your vote. Your local leadership doesn’t decide your vote. You decide.”
Still, UAW chapters in Flint, Michigan; Marion, Indiana; Spring Hill, Tennessee; Louisville, Kentucky; Portland, Oregon; and Tonawanda, New York, are among those that have voted the deals down.
To be clear, the Ford and Stellantis agreements are not at rising of crumbling just yet because only a few chapters have voted no, Givan noted. The GM contract has generated the most opposition but it, too, could pass as is, she said.
However, if a majority of unionized autoworkers decide to reject the Big 3’s proposals, the union could decide to restart the strike or return to the bargaining table and ask for more concessions.
“Voting is still underway, but this is not a clean sweep,” Vincent said. “It also is possible that the contract will be approved at one automaker but not at the other automakers.”
Khristopher J. Brooks is a reporter for CBS MoneyWatch. He previously worked as a reporter for the Omaha World-Herald, Newsday and the Florida Times-Union. His reporting primarily focuses on the U.S. housing market, the business of sports and bankruptcy.
(Reuters) – The United Auto Workers (UAW) production workers at Ford’s Louisville assembly and Kentucky truck plants have voted against a proposed four-and-a-half year contract, while the skilled trades workers voted in favor of the deal, the union’s local unit said on Facebook.
The UAW Local 862 union said that 55% of the production workers voted against ratifying the contract. However, 69% of the skilled trades workers cast votes in favor of the contract.
The union did not disclose the overall percentage of the votes in favor of the deal, or the total number of votes cast.
The union and Ford did not immediately respond to Reuters’ requests for comment
Union workers are voting on contracts from each of Chrysler-owner Stellantis, GM and Ford, after the first coordinated strike against Detroit’s Big Three automakers.
On Friday, UAW union members at General Motors’ Flint assembly plant in Michigan narrowly voted against the proposed contract with the U.S. automaker.
(This story has been refiled to add the dropped word ‘production’ in paragraph 1)
(Reporting by Gokul Pisharody in Bengaluru; Editing by Dhanya Ann Thoppil)
Tesla Chief Executive Officer Elon Musk gets in a Tesla car as he leaves a hotel in Beijing, China May 31, 2023.
Tingshu Wang | Reuters
Tesla shares closed down about 5% on Thursday at $209.98 after HSBC Global initiated coverage with a “reduce” rating and a $146 price target. In their note, HSBC analysts called Elon Musk both an asset and a risk to Tesla, noting he is a “charismatic CEO with a cult-like following” who “feeds into the innovator narrative.”
The analysts also pointed to “hope” already baked into Tesla’s share price around the company’s many ambitious future tech projects, from its long-delayed driverless systems to humanoid robots and supercomputers. “Arguably the ideas need to become reality to support the current share price,” the analysts said.
“Tesla is more than a very expensive auto company,” the analysts wrote at the beginning of the note. “Its ambition is to be an innovator, which underpins the valuation.”
On the bearish side, HSBC analysts wrote, “Significant delays or developments that show lack of technological and/or regulatory feasibility for a commercial launch of these projects pose a significant risk for Tesla.”
On the more bullish side, HSBC analysts said Tesla’s core automotive business “faces fewer challenges than the incumbents and as such, deserves a premium.” They said, “EVs, by virtue of rising penetration, are a growth market and are likely to be for decades. Tesla is already the cost leader and given its stated ambitions (and scale), is likely to remain so.”
Also on the bullish side for Tesla, they said, “A faster than expected development” in these areas “could lead to a re-rating of Tesla multiples,” as could “higher than expected market share gains driven by the price cuts we expect” in Tesla’s core electric vehicle business.
Besides the “reduce” rating from HSBC, Tesla is also facing a widening strike in Sweden.
Swedish unions are pressuring Tesla with strikes and blockades over the company’s refusal so far to sign a collective bargaining agreement with employees in its service division, including technicians and mechanics who repair and maintain customers’ cars.
The IF Metall trade union, which represents some Tesla service employees, began a strike action at 12 Tesla service centers on Oct. 27, The New York Times reported. Dockworkers who are members of the Swedish Transport Workers Union have said they will not unload Teslas at ports in the region if the EV maker fails to negotiate a labor agreement by Nov. 17. Electrical workers who maintain the company’s charging stations, among other things, have also promised to strike starting Nov. 17 if no agreement is reached.
The labor action could potentially spread to Norway, according to reports by The New Republic.
Meanwhile, on Thursday, President Joe Biden spoke to UAW workers in Illinois, where he voiced support for the union leader’s ambition to strike collective agreements with Tesla, Toyota and others.
UAW President Shawn Fain said in October during an online broadcast, “When we return to the bargaining table in 2028, it won’t just be with the ‘Big Three,’ but with the big five or big six.”
Tesla is expected to host a Cybertruck event at the end of this month. While the specs and pricing for the final version of the Cybertruck have yet to be revealed, Tesla has allowed some Cybertrucks to be trotted around to promotional events. Auto critics including hobbyists and professionals have panned their build quality and design this week, The Autopian reported.
General Motors and the United Auto Workers have struck a tentative deal, ending the union’s unprecedented six-week campaign of coordinated strikes that won record pay increases for workers at the Detroit Three automakers. What do you think?
“Great. I’ve been buying foreign cars for six straight weeks in solidarity.”
Albert Houlihan, Turf Researcher
Woman Who Had Abortion Shares How She Regrets Not Stopping For M&M McFlurry Afterwards
“Hopefully they can find a way to automate these strikes so it’s less intense next time.”
Dwight Gauthier, Unemployed
“Surely there’s a better solution than paying fair wages.”
The United Auto Workers late Monday formally ended their six-week strike against Detroit’s Big 3 automakers, with union leaders saying they have inked tentative labor agreements with Ford, General Motors and Stellantis.
Labor experts described the enhanced pay and benefits that all three companies are offering as a victory for the UAW and its 146,000 workers. Although union chief Shawn Fain didn’t deliver on all of his demands, which included a 32-hour week, the UAW’s hardball tactics appear to have paid off, said Lynne Vincent, a business management professor at Syracuse University.
“The UAW’s strategy to negotiate with and strike at the three automakers simultaneously paid off with seemingly strong agreements at all three organizations,” she said.
Although the agreements differ at the margins, workers at each of the automakers will receive the same top-line benefits including the right to strike over plant closures and additional benefits to retirees. Details on the terms for employees at Stellantis (owner of Chrysler, Dodge, Jeep and Ram) and GM have yet to be released, but here’s a snapshot of what unionized autoworkers are expected to get under the new labor deals.
Wage hikes
Workers at all Big 3 automakers will see a 25% increase in their hourly pay across the four-and-half years of the contract. In their previous contract, which ran between 2019 and 2023, workers at the Big 3 received a 6% wage increase every year.
Under their deal, Ford and Stellantis employees will see an immediate 11% increase in their pay. Hourly pay at Ford will jump from $32.05 to $42.60 for assembly-line workers and from $36.96 to $50.57 for skilled trades employees, according to the preliminary contract.
GM employees are also getting a 25% hike, lifting the top wage to more than $42 an hour including the COLA. The starting wage will jump to over $30 including the cost of living bump.
Cost of living adjustments
Employees at the Big 3 will receive regular cost of living adjustments along with wage increases. At Ford, the increase will be based on a three-month average of changes in the consumer price index, with workers set to receive their first COLA payment in December. Specifics on GM and Stellantis’ COLA payments were not released Monday, but they are likely to be similar.
The automakers stopped offering COLAs in 2007 to save cash as the companies ran into financial headwinds shortly before the housing crash.
Faster path to top wages
Newly hired factory workers at the Big 3 will start earning the companies’ top wage more quickly. At Ford, GM and Stellantis, for example, full-time employees will make the top payafter three years on the job. Under the previous contracts, it took workers eight years to reach the highest tier.
Two-tier wage system eliminated
The UAW was able to convince automakers to abolish the two-tier wage system they adopted in 2007 as the companies were struggling financially — a key demand given that employees hired after that year could earn less than half for doing the same job than their longer-tenured coworkers.
Khristopher J. Brooks is a reporter for CBS MoneyWatch covering business, consumer and financial stories that range from economic inequality and housing issues to bankruptcies and the business of sports.