UAW President Shawn Fain has made much of his readiness to strike the Big Three automakers. If that happens, 150,000 union members will picket after the current contracts expire on Sept. 14. Renewal negotiations began on July 14, starting with Stellantis and then Ford. GM talks launch on July 18.
The stakes are undeniably high. The union amassed a strike fund of at least $825 million, from which members would draw $500 weekly pay. For automakers, costs could be astronomical and dwarf the $3.6 billion hit to GM in 2019.
Those immediate losses would only be part of the damage. A leading analyst estimated that a strike could result in “wage and benefit improvements that result in 25% to 30% higher labor costs for the companies over the four years of the contract.”
Fain is surely gleeful at this prospect. He has a lot to prove as the first directly elected UAW president following a notorious corruption scandal. Yet he also entered amid accusations of a sham election. So, it’s no surprise that he has doubled down on “militant” posturing while insisting that “the future of the working class is at stake.”
In other words, cue the big gestures. The union began negotiations by shunning the ceremonial handshake with Big Three CEOs and christening a “Member’s Handshake.”
Enter the key UAW demands: (1) Increasing wages for EV battery plant workers who currently make between $16.50 and $20.00 per hour (vs. $32 to $60 at traditional assembly plants), despite EV cars being far cheaper to produce; (2) Eliminating wage tiers; (3) Restoring long-lost COLA benefits.
As is the case with unions, their objectives might sound altruistic, yet wrinkles exist:
- UAW members at the Ultium EV battery plant questioned whether the union cares about OSHA violations and whether leadership will stand firm on EV wages. That lack of confidence is understandable. After all, a six-week strike at Clarios recently ended with what workers called a sell-out deal, including longer work days with no overtime and no substantial wage increases.
- Workers accused the UAW of doing nothing about mandatory 7-day work weeks for Stellantis at Michigan factories that entered “critical status” mode to increase Jeep SUV production. The company cites increased demand, but workers called this a strike-preparation tactic for stockpiling inventory.
- The union’s beef with Biden and lack of endorsement continues. Fain accused Biden of “actively funding the race to the bottom” with the Energy Department’s planned $9.2 billion loan to EV plants. The UAW also wants to extend the EPA’s timeline for two-thirds of new cars to be EVs by 2032.
- Fain mysteriously dumped the entire law firm that guided the union through its corruption cleanup. This follows General Counsel Abigail Carter’s dismissal, ostensibly for withholding information about Neil Barofsky’s investigation.
Additionally, Biden enlisted long-term adviser Gene Sperling as the point person for UAW negotiations. Sperling will work with Acting Labor Secretary Julie Su, still far from Senate confirmation. And now… prepare for fireworks.
