Posts tagged electric vehicle
The UAW Might Drive the Big Three off a Cliff
September 14, 2023 // Automakers face this reality every day. General Motors is losing money on every electric vehicle, a situation that it hopes to change by 2025, though the path is far from certain. Ford’s EV line is expected to lose $4.5 billion this year, up nearly 50 percent over last year. Stellantis’s CEO has said the costs of the EV transition are “beyond the limits,” meaning the industry can’t continue down this road without making EVs prohibitively expensive.
Opinion: Free Raises for Everybody. Not.
August 17, 2023 // One obvious result will be higher costs on public works and probably fewer of them since federal dollars won’t go as far. States and localities may have to borrow more and raise taxes to fund projects. Fewer semiconductor fabs and renewable projects will probably be built since private capital won’t go as far. Another result will be less private investment, especially in housing, since contractors will have to increase wages to compete for workers with federally funded projects that must pay the prevailing wage. The rule will also reduce the competitive advantage of right-to-work states by raising the wages their contractors have to pay.
Trump Makes Appeal to Unions Emboldened Under Biden Administration
July 28, 2023 // F. Vincent Vernuccio, senior fellow at the Mackinac Center for Public Policy and the Center’s director of labor policy between 2012 and 2017, said that some of the UAW jobs could be going away because of the president’s push for electric vehicles. He pointed to a recent report estimating that the new electric vehicle targets could eliminate 117,000 manufacturing jobs. “You’re seeing it reflected in jobs moving down south to right-to-work states,” he said, referring to states that make forced unionization illegal. Employees who want to cross the picket line and work when unions have issued a strike have to do it legally, else face fines or other disciplinary action from the unions. He said that large, industrialized unions tend to have one-size-fits-all contracts that benefit some but not all workers, making the administration’s push for unionization where there was none before a net negative. He advocates instead for term flexibility for workers, unionized or not.
‘This is a problem’: Biden faces looming strikes that could rock economy
July 25, 2023 // Privately, some Democrats said the White House was caught off-guard by Fain’s ascension to the top of UAW. They described Biden’s team as currently being in an information-gathering mode about the union’s new leadership — a stark contrast from the close relationship it had enjoyed with former UAW president Ray Curry. Other Democrats said the White House was clearly aware of Fain’s criticism of how the Biden administration had doled out federal funds. But privately, some people in Biden’s orbit have continued to express worries that there’s distance between his agenda and a major union representing voters in a state key to his reelection. Biden’s senior staff has told allies “that the rhetoric from the new UAW leadership is concerning, this is a problem, and we’ve got to figure this out together,” according to a person familiar with the administration’s thinking.
Op-Ed: Sherk: Proposed EV mandate will cost thousands of jobs
July 18, 2023 // he America First Policy Institute used Bureau of Labor Statistics data to estimate how many auto-manufacturing jobs the Biden Administration’s proposed EV mandate would cost. Our model produces estimates similar to prior studies for less-aggressive EV targets. The model finds that this stricter mandate — pushing EVs to two-thirds of U.S. vehicle sales — would eliminate about 120,000 auto-manufacturing jobs. Those job losses would be concentrated in the Midwest. Michigan, Indiana, and Ohio are the heartland of U.S. automobile production. These three states account for more than two-fifths of U.S. auto workers. As Lawrence Burns, the former VP for Research and Development at General Motors, has explained, the EV-induced “employment ramifications for states like Michigan and regions like southeast Michigan and northwest Ohio are really going to be a big deal.”
Despite President Joe Biden’s repeated boasts, union membership continues to fall
July 18, 2023 // Union members do not always agree with Democrats on policy matters. Biden's own green energy agenda is coming up against labor resistance, with organized auto workers prepared to strike over the hazards and lack of benefits in electric vehicle production. Biden must also work to keep blue-collar union members from slipping into the Republican column as candidates like former President Donald Trump play up American manufacturing and the virtues of import tariffs. But more recent headlines showcase unions fighting their traditional battles over pay, benefits, and worker protections.
OP-ED: BIDEN IS INVESTING IN GREEN ENERGY ACROSS THE SOUTH — THROWING SWING STATE UNION WORKERS UNDER THE BUS
July 12, 2023 // The success of the climate program will require continued federal commitment. Biden is placing a bet that clean energy investments could ultimately work the same way as the military-industrial complex. The military and its allied contractors have made sure to set up bases and/or manufacturing facilities in nearly every congressional district in the country, with extra attention paid to areas represented by key lawmakers. That has produced durable support for ever-expanding military budgets. Whether the same could be accomplished for the clean energy industry is an open question, but so far, Republicans from districts that have won federal awards have nevertheless voted to repeal the Inflation Reduction Act, which funds the tax breaks. By subsidizing the decline of union jobs, the Biden administration risks empowering lawmakers who will then move to end the subsidies altogether. “The total lack of consideration for workers could certainly make the difference in 2024.” “What Biden is doing is politically insane, environmentally bankrupt, and it’s poor economics,” Larry Cohen, former president of the Communications Workers of America and board member of Our Revolution, told The Intercept.
UAW boss warns of race to the bottom in electric vehicle transition
July 12, 2023 // “Not only is the federal government not using its power to turn the tide – they’re actively funding the race to the bottom with billions in public money,” Fain wrote. “These companies are extremely profitable and will continue to make money hand over fist whether they’re selling combustion engines or EVs. Yet the workers get a smaller and smaller piece of the pie.” Electric vehicle jobs, like the 7,500 that will be created at the Kentucky and Tennessee Ford facilities, are “low-road jobs” that offer “no consideration for wages, working conditions, union rights or retirement security,” the union leader said.
UAW Skipping Ceremonial Handshake to Start Contract Talks
July 11, 2023 // “The members come first,” UAW President Shawn Fain said Monday in a statement. “I’ll shake hands with the CEOs when they come to the table with a deal that reflects the needs of the workers who make this industry run. When the 150,000 autoworkers at Ford, GM, and Stellantis receive the respect they are due for their sacrifice in generating the historic profits of the past decade, then we can proceed with a handshake.” Talks with Stellantis begin Thursday, followed by Ford on Friday and General Motors on July 18, according to the union. Change is in the wind The move to skip the handshake is completely inline with Fain’s militant approach, which is reminiscent of past tough talking UAW leaders like Stephen Yokich, Owen Bieber, Doug Fraser. However, recent union presidents have been less firebrand and more businessman.
Unions hate Biden’s EV push, Schumer & Co. vs. democracy and other commentary
July 6, 2023 // An “alignment between the United Auto Workers and former President Trump over electric vehicles threatens” the “alliance between the union and the Democratic Party,” notes Axios’ Nathan Bomey, with the UAW “withholding an endorsement for Biden’s 2024 campaign.” Already, “one in three UAW members voted for Trump in 2016 and 2020.” And “UAW President Shawn Fain ripped” Biden after “the Energy Department announced a $9.2 billion loan to Ford to build battery plants in the South,” since “EV factories won’t employ as many people as traditional assembly plants” and the likely “lower wages at new battery-making joint ventures.” As “Democrats need the Midwest to preserve political power, the president’s commitment to promoting EVs is testing his support among longtime allies