No one is enjoying the UAW’s so-called Stand-Up Strike more than union President Shawn Fain, who is still receiving his paycheck, unlike many workers. His latest live stream included an ecstatic declaration that GM agreed to include EV battery plants under their master agreement. He called this a “transformative win” and the “foundation for a just transition.”
A strategic takeaway: As we previously discussed, EV battery plants are not currently covered in Big Three contracts but are a bargaining chip. They are a future battleground and could be a determinative sticking point. Would Fain drop his fantasy demand for a 32-hour work week and lighten up on 46% wage increases for the sake of EV plants?
This could have been Fain’s gamble all along in the interest of recouping long-declining UAW membership numbers. Yet it remains unclear whether GM offered EV wages comparable to traditional assembly plants.
That match would be financially unfeasible. Yet it’s not difficult to guess why GM agreed to somehow include EVs in their agreement. The strike has already cost GM $200 million, which could turn into billions. GM’s newest counteroffer leaves gaps in union demands but includes a raise proposal of 23%, with Ford and Stellantis offering 20%. Two of the Big Three have agreed to restore COLA benefits, too.
How are non-union auto workers viewing these developments?
Mixed Feelings: These workers see their union counterparts struggling to live on $500 in weekly strike pay, an act comparable to “mutually assured destruction.” Thousands of other workers have also been furloughed at Big Three plants and suppliers, and this surely includes non-union workers who do not appreciate losing money over Fain’s agenda. Ford just laid off another 500 workers, so both companies and union members are suffering.
As such, Toyota, Hyundai, Nissan, and Honda non-union workers are watching with curiosity and skepticism to see if the strike yields meaningful enough results to justify contemplating union membership. Non-union workers should also heed the UAW’s infamous (and possibly ongoing) history of corruption as a harbinger of future broken promises.
What’s next: Fain held off on adding more workers to the picket line while citing progress in talks. Yet his overall motives there are questionable. That $850 million strike fund will only go so far, which could account for the UAW agreeing to 19% raises at a Mack Trucks plant as opposed to the 46% demanded for Big Three workers. That tentative deal was voted down by workers over this past weekend. Those 4,000 workers now intend to strike.
Fain also has dollar signs in his eyes while thinking of new members to attract with this strike. He bragged about future plans for “organizing half a dozen auto companies” soon. He boasted that the Big Three could someday be the “Big Five, Big Seven, Big Ten unionized automakers.”
Meanwhile, Ford’s CEO has confirmed the union is “holding [their] deal hostage” over EVs. Yet Fain will never receive that or any of his wishes if he disassembles this industry first.
