coming big uaw strike?
08-19-23, 08:22 PM
#1
Lexus Fanatic
Thread Starter
iTrader: (20)
coming big uaw strike?
from Crains Detroit (free registration to read this article at the link below).
In the heart of America's Motor City, a tempest brews that could redefine the automotive landscape.
The United Auto Workers (UAW) union, representing a vast swath of the industry's workforce, stands on the precipice of a historic strike against Detroit's iconic Big Three: Ford, General Motors, and Stellantis. As an automotive turnaround professional who has navigated the intricate lanes of the car business for two decades, I've never sensed such a charged atmosphere. The road ahead seems fogged by uncertainty.
The potential strike transcends mere wage disputes or job assurances; it's emblematic of the seismic shifts the auto industry confronts. The electrification wave, relentless inflation and supply chain hiccups are not mere speed bumps but mountainous terrain that the industry must traverse.
The Detroit Three, despite their recent (and perhaps ephemeral) colossal profits, face an existential challenge. A production halt, even briefly, could bleed them financially. But there's more at stake: their legacy, their commitment to innovation, and their place in the global market. The 2019 GM strike, which cost the company approximately $3.6 billion in lost earnings, and its employees hundreds of millions in lost wages, is a stark reminder of the potential fallout.
For the UAW, the battle is twofold. While they champion wage parity, especially in burgeoning sectors like EV battery plants, they also grapple with internal demons, seeking redemption from past scandals. Their fight is genuine, resonating with many who see the future of automobiles in electric hues.
But the tremors of this standoff won't be confined to Detroit. They'll resonate across the nation. The auto industry's $1 trillion contribution to the U.S. economy isn't just a number; it's livelihoods, dreams, and the very fabric of many communities. A prolonged strike could send shockwaves, disrupting supply chains and setting a precedent for wage structures across sectors.
Historically, when national economic stability teeters, the U.S. government has stepped in. The Taft-Hartley Act of 1947 is a testament to such interventions. If the current impasse morphs into a crisis, governmental mediation, or even an imposed settlement, might be on the horizon.
The auto industry stands at a crossroads, and the choices made today will echo for generations. The UAW's concerns are genuine, the Detroit Three's challenges real. But a protracted strike could be a pyrrhic victory, where all parties lose in the long run.
In this high-stakes game, it's not about who blinks first but how all stakeholders can envision a shared future. Drawing from my own experience navigating the intricacies of automotive supplier turnaround situations, I ardently advocate for collaboration over confrontation.
In the corridors of Detroit's automotive history, individual milestones shine, but it's the collective journey that stands out. As we confront this pivotal moment, my hope is for a harmonious ending, with all parties unified in purpose and direction, driving our industry's united path forward.
https://www.crainsdetroit.com/commen...-auto-industry
A UAW strike could be pivotal moment for auto industry
In the heart of America's Motor City, a tempest brews that could redefine the automotive landscape.
The United Auto Workers (UAW) union, representing a vast swath of the industry's workforce, stands on the precipice of a historic strike against Detroit's iconic Big Three: Ford, General Motors, and Stellantis. As an automotive turnaround professional who has navigated the intricate lanes of the car business for two decades, I've never sensed such a charged atmosphere. The road ahead seems fogged by uncertainty.
The potential strike transcends mere wage disputes or job assurances; it's emblematic of the seismic shifts the auto industry confronts. The electrification wave, relentless inflation and supply chain hiccups are not mere speed bumps but mountainous terrain that the industry must traverse.
The Detroit Three, despite their recent (and perhaps ephemeral) colossal profits, face an existential challenge. A production halt, even briefly, could bleed them financially. But there's more at stake: their legacy, their commitment to innovation, and their place in the global market. The 2019 GM strike, which cost the company approximately $3.6 billion in lost earnings, and its employees hundreds of millions in lost wages, is a stark reminder of the potential fallout.
For the UAW, the battle is twofold. While they champion wage parity, especially in burgeoning sectors like EV battery plants, they also grapple with internal demons, seeking redemption from past scandals. Their fight is genuine, resonating with many who see the future of automobiles in electric hues.
But the tremors of this standoff won't be confined to Detroit. They'll resonate across the nation. The auto industry's $1 trillion contribution to the U.S. economy isn't just a number; it's livelihoods, dreams, and the very fabric of many communities. A prolonged strike could send shockwaves, disrupting supply chains and setting a precedent for wage structures across sectors.
Historically, when national economic stability teeters, the U.S. government has stepped in. The Taft-Hartley Act of 1947 is a testament to such interventions. If the current impasse morphs into a crisis, governmental mediation, or even an imposed settlement, might be on the horizon.
The auto industry stands at a crossroads, and the choices made today will echo for generations. The UAW's concerns are genuine, the Detroit Three's challenges real. But a protracted strike could be a pyrrhic victory, where all parties lose in the long run.
In this high-stakes game, it's not about who blinks first but how all stakeholders can envision a shared future. Drawing from my own experience navigating the intricacies of automotive supplier turnaround situations, I ardently advocate for collaboration over confrontation.
In the corridors of Detroit's automotive history, individual milestones shine, but it's the collective journey that stands out. As we confront this pivotal moment, my hope is for a harmonious ending, with all parties unified in purpose and direction, driving our industry's united path forward.
https://www.crainsdetroit.com/commen...-auto-industry
08-19-23, 08:55 PM
#2
Lexus Champion
They keep this up and there just won't be domestic cars anymore and they will have zero pay.
08-19-23, 09:01 PM
#3
Lexus Fanatic
I was a major commenter here in Car Chat (and had some very strong views) on the last major strike in 2019....and strongly supported the American UAW and Canadian UNIFOR in their positions. But, this time, the stakes and issues may (?) be different, and the above article tells us very little, if anything at all. I'm going to wait until the issues become more clear, and why another strike is being considered, before making any more comments.
08-20-23, 07:12 AM
#4
Lexus Fanatic
Thread Starter
iTrader: (20)
with inexorable move to electric vehicles, greater automation of production, fewer parts, and competition, there will be less auto jobs. the uaw wants to somehow protect themselves but they can't win. even if they win a short term battle with a strike, they will lose in the long run as the 'big detroit 3' simply move production elsewhere or die on the vine through not being competitive..
08-20-23, 07:17 AM
#5
China is going to move into autos in a big way, especially low cost EVs. The UAW may not feel threatened by that since their bread and butter is making $70K pickup and SUVs, but once low cost Chinese import brands get a toehold in the US market, combined with what Tesla is doing (and will do with the Model2), look out below.
08-20-23, 08:40 AM
#6
Lexus Champion
China is going to move into autos in a big way, especially low cost EVs. The UAW may not feel threatened by that since their bread and butter is making $70K pickup and SUVs, but once low cost Chinese import brands get a toehold in the US market, combined with what Tesla is doing (and will do with the Model2), look out below.
08-23-23, 08:34 AM
#7
Lexus Fanatic
Thread Starter
iTrader: (20)
https://www.axios.com/2023/08/23/ele...ontract-strike
6 hours ago - Economy & Business
What the electric car transition really means for autoworkers
Joann Muller
A big sticking point in contract talks between Detroit automakers and the United Auto Workers union is the popular assertion that it takes fewer workers to manufacture electric vehicles (EVs) than conventional cars.
In fact, the opposite may be true: Researchers at Carnegie-Mellon University recently found that EVs require more labor hours, primarily to produce battery cells.
Today, those cells are manufactured mostly in Asia. Yet a slew of companies are shifting production to the U.S. to take advantage of new tax incentives — though the resulting jobs will likely be non-unionized and lower-paying.
Why it matters: The EV transition is fraught with risks for both auto workers and Detroit's big three manufacturers: General Motors, Ford and Stellantis.
For UAW members, it's the risk that good-paying union jobs building engines, transmissions and exhaust systems will disappear.
For auto companies, it's the risk that they'll fall further behind Tesla and other non-unionized rivals that already have a significant labor cost advantage.
The big picture: EVs have fewer moving parts than gas-powered vehicles, with no engines, transmissions or exhaust systems.
That makes them easier to maintain and — according to some industry experts — simpler to build.
Even Ford CEO James Farley says so: Last November, he bluntly asserted that EVs will require 40% less labor to produce than traditional cars.
To preserve jobs, Farley said, Ford will need to build more EV components in-house — similar to the way founder Henry Ford operated nearly 100 years ago.
For example, Ford workers at a former transmission plant near Detroit are now making EV motors and transaxles, while workers at another parts facility are assembling battery packs.
The intrigue: Manufacturing battery pack cells is the most labor-intensive part of EV production, according to Turner Cotterman, a McKinsey consultant who worked on the Carnegie-Mellon study.
Yes, but: Even as cell production shifts to the U.S., that labor will likely be done by non-union workers at factories co-owned by foreign battery partners, and they'll make less money than workers at traditional powertrain factories.
For example, battery cell factories under construction in Kentucky and Tennessee and co-owned by Ford and Korea's SK On just started hiring workers for $21-$29 per hour, compared to the $28-$35 union workers earn making engines and transmissions at Ford's existing plants.
A GM battery plant co-owned with another Korean company, LG Energy Solution, opened in Ohio in 2022 with a starting wage of $16.50 an hour, and a promised rise to $20 after seven years.
What's happening: The UAW successfully organized employees at the Ohio plant, called Ultium Cells, last December, making it the country's first unionized battery cell factory.
But the two sides still have to negotiate a contract.
GM and Ford insist these new battery plants aren't covered by the national bargaining agreements for existing autoworkers because they are technically owned by separate companies.
Meanwhile: A UAW report says Ultium Cells workers have reported "serious health and safety problems" and face "hazardous conditions and low pay."
Some operations at the plant were paused this week after a chemical leak now under investigation by federal safety regulators, the Detroit News reported.
The company said no employees were exposed or injured in the weekend incident.
The bottom line: "There's a push and pull happening," Cotterman tells Axios, describing the tension between supporting autoworkers and the Biden administration's efforts to catalyze domestic EV production.
Auto companies will only hire so many workers at a higher wage, potentially slowing the rate of EV production.
"As the U.S. accelerates the transition to EVs, we have to ask, 'How much do we care about these new workers in the EV industry?'" Cotterman says. "If we value them highly and pay them fairly, it almost runs counter to the pace we can roll EVs out."
"China is moving a hell of a lot faster. If we want to keep up, it's difficult to support the workers."
6 hours ago - Economy & Business
What the electric car transition really means for autoworkers
Joann Muller
A big sticking point in contract talks between Detroit automakers and the United Auto Workers union is the popular assertion that it takes fewer workers to manufacture electric vehicles (EVs) than conventional cars.
In fact, the opposite may be true: Researchers at Carnegie-Mellon University recently found that EVs require more labor hours, primarily to produce battery cells.
Today, those cells are manufactured mostly in Asia. Yet a slew of companies are shifting production to the U.S. to take advantage of new tax incentives — though the resulting jobs will likely be non-unionized and lower-paying.
Why it matters: The EV transition is fraught with risks for both auto workers and Detroit's big three manufacturers: General Motors, Ford and Stellantis.
For UAW members, it's the risk that good-paying union jobs building engines, transmissions and exhaust systems will disappear.
For auto companies, it's the risk that they'll fall further behind Tesla and other non-unionized rivals that already have a significant labor cost advantage.
The big picture: EVs have fewer moving parts than gas-powered vehicles, with no engines, transmissions or exhaust systems.
That makes them easier to maintain and — according to some industry experts — simpler to build.
Even Ford CEO James Farley says so: Last November, he bluntly asserted that EVs will require 40% less labor to produce than traditional cars.
To preserve jobs, Farley said, Ford will need to build more EV components in-house — similar to the way founder Henry Ford operated nearly 100 years ago.
For example, Ford workers at a former transmission plant near Detroit are now making EV motors and transaxles, while workers at another parts facility are assembling battery packs.
The intrigue: Manufacturing battery pack cells is the most labor-intensive part of EV production, according to Turner Cotterman, a McKinsey consultant who worked on the Carnegie-Mellon study.
Yes, but: Even as cell production shifts to the U.S., that labor will likely be done by non-union workers at factories co-owned by foreign battery partners, and they'll make less money than workers at traditional powertrain factories.
For example, battery cell factories under construction in Kentucky and Tennessee and co-owned by Ford and Korea's SK On just started hiring workers for $21-$29 per hour, compared to the $28-$35 union workers earn making engines and transmissions at Ford's existing plants.
A GM battery plant co-owned with another Korean company, LG Energy Solution, opened in Ohio in 2022 with a starting wage of $16.50 an hour, and a promised rise to $20 after seven years.
What's happening: The UAW successfully organized employees at the Ohio plant, called Ultium Cells, last December, making it the country's first unionized battery cell factory.
But the two sides still have to negotiate a contract.
GM and Ford insist these new battery plants aren't covered by the national bargaining agreements for existing autoworkers because they are technically owned by separate companies.
Meanwhile: A UAW report says Ultium Cells workers have reported "serious health and safety problems" and face "hazardous conditions and low pay."
Some operations at the plant were paused this week after a chemical leak now under investigation by federal safety regulators, the Detroit News reported.
The company said no employees were exposed or injured in the weekend incident.
The bottom line: "There's a push and pull happening," Cotterman tells Axios, describing the tension between supporting autoworkers and the Biden administration's efforts to catalyze domestic EV production.
Auto companies will only hire so many workers at a higher wage, potentially slowing the rate of EV production.
"As the U.S. accelerates the transition to EVs, we have to ask, 'How much do we care about these new workers in the EV industry?'" Cotterman says. "If we value them highly and pay them fairly, it almost runs counter to the pace we can roll EVs out."
"China is moving a hell of a lot faster. If we want to keep up, it's difficult to support the workers."
Trending Topics
08-23-23, 12:32 PM
#8
There's your money quote. It's the same old question: If most Americans' incomes and lives are worse, but "the economy" is better, how are you defining the health of "the economy"? When the Fed openly declares that the explicit purpose of its interest-rate hikes is to damage workers in order to "fight inflation", the goal is to help exactly whom? Similarly, if we don't support the workers — in other words, if we allow them to be fired or pay-cut en masse — who's the "we" who are "keeping up"?
08-23-23, 01:17 PM
#9
Lexus Fanatic
There's your money quote. It's the same old question: If most Americans' incomes and lives are worse, but "the economy" is better, how are you defining the health of "the economy"? When the Fed openly declares that the explicit purpose of its interest-rate hikes is to damage workers in order to "fight inflation", the goal is to help exactly whom? Similarly, if we don't support the workers — in other words, if we allow them to be fired or pay-cut en masse — who's the "we" who are "keeping up"?
Higher interest rates don't just "damage" those with mortgages and car-loans. They actually help a lot of people....by giving them more interest on fixed-income investments, so they can pay off those loans.
It's true that loans were very cheap for a number of years.....but people weren't making any interest money, either.
08-25-23, 05:58 PM
#10
Lexus Fanatic
The UAW workers just voted to approve the strike.
https://www.nbcnews.com/business/bus...tis-rcna101808
https://www.nbcnews.com/business/bus...tis-rcna101808
09-13-23, 04:58 PM
#11
Lexus Fanatic
The strike is on for tomorrow night...at midnight, against all three corporations......Ford, GM, and Stellantis.
Here are the details.
https://www.reuters.com/business/aut...ls-2023-09-13/
The UAW is asking for three major issues....a pay raise, guaranteed pensions, and a 32 hour work week. I fully support the request for a pay raise.....we have had serious inflation in the U.S, partiucularly in the grocery stores, for the last two or three years, and it has impacted many blue-collar workers and made things very difficult. And I even more-fully support the request for pensions....I have one myself. Workers who give 30 or 40 years of their lives to a company, particularly with hard work like in an assembly-plant, deserve more than just a Chump-Change IRA...particularly with interest rates being so low until very recently and the IRAs not making anything. I'm not sure if I support the 32 hour work-week request or not.
..it has its pros and cons. And workers can take Annual Leave if they need some time off. In my career, I myself didn't take much very time off at all...I usually donated my extra leave to pregnant workers (which we could do) who needed paid time off to stay at home and take care of their newborns.
Here are the details.
https://www.reuters.com/business/aut...ls-2023-09-13/
The UAW is asking for three major issues....a pay raise, guaranteed pensions, and a 32 hour work week. I fully support the request for a pay raise.....we have had serious inflation in the U.S, partiucularly in the grocery stores, for the last two or three years, and it has impacted many blue-collar workers and made things very difficult. And I even more-fully support the request for pensions....I have one myself. Workers who give 30 or 40 years of their lives to a company, particularly with hard work like in an assembly-plant, deserve more than just a Chump-Change IRA...particularly with interest rates being so low until very recently and the IRAs not making anything. I'm not sure if I support the 32 hour work-week request or not.
..it has its pros and cons. And workers can take Annual Leave if they need some time off. In my career, I myself didn't take much very time off at all...I usually donated my extra leave to pregnant workers (which we could do) who needed paid time off to stay at home and take care of their newborns.
09-13-23, 07:42 PM
#13
Raises and 32 hour work week i support - 32 hour work weeks have been gaining traction in many countries and there are a ton of benefits. I agree with Striker - i would rather work 4x10ish vs 5x8ish. Perhaps that is what they should fight for - 4x10 type of schedule.
Pensions though... they rely on the thinking of infinite growth. Not sure i'm on board with pensions.
Either way, strike away! I'm in favor of unions and what they often fight for. They aren't perfect, but they are still needed.
Pensions though... they rely on the thinking of infinite growth. Not sure i'm on board with pensions.
Either way, strike away! I'm in favor of unions and what they often fight for. They aren't perfect, but they are still needed.
09-13-23, 08:22 PM
#15
Lexus Champion
I mean I could totally just not show up to work but that only screws me over! I have the opposite problem, I like what I do so oftentimes I get home about....now lol!
If I'm going to go into work I would rather that day be just work since that lets me min/max my life easily by having work really intensely for 4-5 days in my case then 1 day I can do all house tasks and a final day to do absolutely nothing useful. Armored Core 6 came out recently and as a long time fan of the series I just took advantage of the fact I set my own workdays to play it for 33 hours straight on release day to beat it. I love having the option to do that and if I needed to work 5 days a week there is just no way I could
If I'm going to go into work I would rather that day be just work since that lets me min/max my life easily by having work really intensely for 4-5 days in my case then 1 day I can do all house tasks and a final day to do absolutely nothing useful. Armored Core 6 came out recently and as a long time fan of the series I just took advantage of the fact I set my own workdays to play it for 33 hours straight on release day to beat it. I love having the option to do that and if I needed to work 5 days a week there is just no way I could
Last edited by Striker223; 09-13-23 at 08:26 PM.