As union leaders celebrate what they tout as monumental wins, their members are paying the price—often in lost jobs. Meanwhile, Shawn Fain and Sean O’Brien continue to draw hefty salaries, seemingly untouched by the financial fallout that ripples through their membership. Are these leaders aware of the consequences, or are they entrenched in a fantasy world where job losses are a distant afterthought?
Since we are about to examine UAW and Teamsters members’ job losses, it’s first worth looking at how those union presidents’ wallets are faring.
For example, Shawn Fain’s first full year as chief led to him clearing at least $228,000, with Teamsters president Sean O’Brien raking in $250,000, so it clearly pays to be the frontman of an international union, but how are their members doing after the high-profile contract “wins” of 2023?
The UPS/Teamsters agreement reportedly led to at least 12,000 job losses as the company restructured to account for increased labor costs. Sean O’Brien then was caught on camera refusing to answer questions about layoffs from a disappointed worker, as though he’d prefer to pretend nothing was amiss. In contrast, Shawn Fain openly engages with foes and defends his Fantasy Land in an outwardly combative and profane way.
We’ll get to that second detail soon, and it’s a doozy.
The Stellantis situation: The Big Three deals included Stellantis implementing across-the-board union member raises of at least 25%. In order to afford those raises under the best of circumstances, most companies would need to trim costs. Then, Stellantis’ 2024 quarterly results pointed towards more trouble amid crumbling sales due to inflation. In the first half of this year, the auto manufacturer’s net revenues fell 14%, with net profit cratering 48%, according to a year-to-year comparison. The issue didn’t improve in the most recent quarter, with net revenues down 27%.
To put things mildly, Stellantis has no choice but to try and right their ship by substantially cutting costs, including labor. Last week, Stellantis laid off 400 people at a Detroit auto parts plant and 1,100 more workers at a Toledo Jeep plant. This followed August’s loss of 2,450 jobs at the Warren, Michigan plant.
Fain will not accept reality: The UAW chief is brushing past Stellantis’ financial problems while claiming that the company is “rolling in the dough.” He alleged company mismanagement and expressed an intent to “cripple” Stellantis with a widespread strike. He also wants to force the company to reopen the Belvidere plant before the company can afford to do so.
Not that these union bosses’ behavior is too surprising. They are pros at deflecting layoff blame, so don’t expect them to accept any responsibility for intentionally stressing companies’ bottom lines.
About that profanity: The UAW website encourages members to visit a site called Sh*tcanCarlos.com about Stellantis CEO Carlos Tavares. Is Fain attempting to one-up his infamous trashcan speech? Perhaps, but Tavares has already announced his 2026 retirement when he can hopefully stop thinking about union presidents’ antics.
Unfortunately, Fain will probably continue to make matters worse for UAW members, but you’d better believe he’ll continue to draw his full salary.
