What is at stake when the Big Three are about to go on strike

Just-Transition Energy Transition: Why EVs Matter, Not Why We Don’t Need To Trade: A Case Study in the Mahoning Valley

The new electric vehicle battery cell plant in Ohio’s Mahoning Valley was excited by the work performed by Surgenavic. The Ultium Cells plant is a joint venture of General Motors and South Korea’s LG, and he grew up in the area when GM was known for well-paid, unionized jobs. “I thought this might be my opportunity to get in on the ground floor of something great,” the HVAC technician says of his job on the leading edge of the EV boom. Then he started work.

There are tense negotiations this week that could lead to a strike of 150,000 autoworkers. The UAW’s four-year-old contract with the Big Three US automakers—Ford, GM, and Stellantis—was forged before drivers embraced EVs, and expires at 11:59 pm EDT on Thursday, September 14.

As society shifts away from unsustainable industries, the philosophy goes, workers and their communities shouldn’t shoulder the burden. A researcher says the just-transition approach has wider benefits by decreasing opposition to new sustainable industries. We can accelerate an energy transition by making a more just society.

Meanwhile, the Big Three are pumping billions of dollars into EVs in a race to catch up with Tesla, which employs a nonunion workforce. These investments are being subsidized by the Biden administration, which has put EVs at the center of its efforts to fight climate change.

The Big Three Autoworkers Are About to Go On Strike – Here’s What’s at stake, according to the Evercore ISI analysis

It’s pretty likely! The analysts at Evercore ISI say there is a strike at all three companies. The union has proposed a 36 percent wage increase, down from 40 percent, which means talks are still ongoing. The two sides are far apart on most issues.

Labor Notes described the election of the UAW president to be similar to the shakeup at the company in which he worked, because he promised no corruption, no concessions and no tiers. Fain has said he has a mandate to fight for his membership, and that means taking his union in a more militant direction.

Their main issue is the cost gap that exists between their and the nonunion factories in the South owned by foreign automakers. It means that they’re spending about $65 an hour on labor costs, including benefits, which is a lot more than their rivals.

The cost of labor for the nonunion workforce is between 45 and $50 per hour. The Big Three argue that they have a hard time keeping up with Tesla, which dominates the EV market in the US.

Good question! This is one of the major arguments given by the union. In the past, they have come to the table to make major concessions to make sure the Big Three stay afloat. According to the UAW, the industry is posting record profits at a time when companies are unwilling to share the success with the workforce.

EVs are not the main source of contention between the union and the Big Three, but they are certainly a supporting player. Fain wants autoworkers who work on EVs to enjoy the same pay and benefits as UAW members.

EV’s require fewer parts and thus fewer workers on the line. Union leadership is concerned that a wholesale shift to electric would dramatically hurt its membership, which has been declining over the decades.

Privately, Fain has been more skeptical about the shift to EVs, calling it a “race to the bottom” in an internal memo, according to The New York Times.

Analysts warn of a possible nightmare situation for both GM and Ford as they prepare for an EV transformation over the next decade that will likely define their future success.

Source: The ‘Big Three’ autoworkers are about to go on strike — here’s what’s at stake

Is a strike necessary to stop the race to the bottom? The auto dealer dealer who doesn’t like to hear from union officials is refusing to give up

As a result of a strike, the economic output of the state or nation is affected. According to this report, a 10-day strike would cost the US gross domestic product and push the Michigan economy into a recession.

The owner of an independent dealership, who uses the name of “CarDealershipGuy” on his social media accounts, hopes this gets resolved before it reaches that point. I highly doubt it.

The cost of doing nothing is higher than what the union says. “Corporations want us to believe there’s nothing we can do to stop our race to the bottom, that’s what they want us to believe.” We have the power to deny our labor when it isn’t valued. The power of a strike is fundamental to us. The cost of doing nothing is more expensive than the cost of a strike.