Posts tagged GM
Tesla’s latest decision is a critical defensive move against the UAW
January 12, 2024 // As per a report published by Bloomberg on January 11, Tesla notified workers at its Fremont, Calif. assembly plant of pay increases across its factories in the United States. The report, which cited a flyer posted at the facility, stated that all United States-based production associates, material handlers and quality inspectors will be receiving what Tesla calls a "market adjustment pay increase." However, the flyer did not state any hard numbers of how much said increase will actually be.
Tesla to Raise Wages at Nevada Gigafactory Amid Pressure to Unionize
December 21, 2023 // During the UAW's strike against the Big Three, analysts noted that Tesla could stand to gain as lost revenue from the strike and higher labor costs under new contracts could make it more difficult for traditional automakers to make the EV transition. Tesla is not the only automaker to raise wages following the UAW strike resolution, as Hyundai and others have taken steps to raise worker pay as well. 2 The electric vehicle maker also faces growing pressure from organized labor activity in Sweden, Denmark, Finland, and Norway over its refusal to enter into collective agreements with labor unions.
The 4-day workweek was a longshot. The UAW isn’t giving up
December 20, 2023 // And once the union and automakers started making progress toward the deal that would eventually end the strike, there was little discussion of a four-day week ever again. The union did win a record contract, with an immediate wage gain of at least 11%, an additional 14 percentage points of raises throughout the life of the contract, a return of cost-of-living adjustments (COLA) and improved retirement benefits, among other gains. Most hourly workers at GM, Ford and Stellantis will be paid at least $43 an hour by the time the recently ratified contract ends in April 2028. That comes to about $1,700 a week for a 40-hour week. And the COLA is likely to raise it further than that. And while a hypothetical pay structure for an alternate deal featuring a four-day work week may be unknowable, paying that weekly wage for a 32-hour week would increase the hourly wage by about 25%, on top of the just negotiated wage hikes.
UAW files unfair labor practice charges against Hyundai, Honda and Volkswagen
December 14, 2023 // The UAW has filed unfair labor practice charges with the National Labor Relations Board against Honda, Hyundai and Volkswagen, the union said. The union alleges management at facilities for the companies have participated in illegal “union-busting as workers organize to join the UAW.” The charges come roughly two weeks after the UAW said it was launching an unprecedented campaign to organize 13 nonunion automakers in the U.S.
UAW secures nearly $8M in back pay
December 13, 2023 // According to a July 2022 letter, also on the UAW’s website, the union was informed that month an arbitrator determined GM violated its national agreement with the union when it closed the plants; the decision, the letter states, was an “important victory.” It states as a result of GM’s breach, the arbitrator found that certain members who kept working with the company at other locations, but experienced some period of layoff were entitled to be made whole. The award does not resolve an issue over mutually satisfied retirement for members the arbitrator previously found was not subject to arbitration, but the Dec. 5 letter states “we continue to fight for MSR’s for all eligible members.”
UAW launches campaign to unionize Toyota, Tesla and other automakers
November 30, 2023 // United Auto Workers union said its next target is to unionize factory workers at Lucid, Rivian, Tesla and 10 foreign automakers, a move that comes after it garnered new employment contracts from Detroit's Big Three automakers. BMW, Honda, Hyundai, Nissan, Mazda, Mercedes, Subaru, Toyota, Volkswagen and Volvo are based overseas but all have manufacturing operations in the U.S. Because these companies have brought in billions of dollars in profit over the past decade, their hourly factory workers deserve to make more money, UAW President Shawn Fain said in a video Wednesday.
GM expects labor contracts to cost an additional $9.3 billion
November 29, 2023 // In their Wednesday business update, GM told investors and customers that the contracts, which included massive pay and benefit increases for its workers, would cost the company significantly. The car giant also reinstated its 2023 business guidance and announced a $10 accelerated stock buyback. Additionally, GM released its estimate for how much the UAW strike cost the firm. According to the Wednesday announcement, GM estimates that the strikes, which began in September and ended late last month, cost the company around $1.1 billion, with bonuses and other benefit increases likely costing the company an additional $200 million before the end of the year.
Commentary: Expect More UAW Strikes, and Be Prepared
November 21, 2023 // Many sectors could see the impact of labor momentum. Every union should be studying the UAW negotiations and strikes. The circumstances will be different at each company and negotiation, but a more aggressive and strategic approach is likely to be valuable in many contexts. Unions should also look at the UAW ratification process, internal communications, supplier headaches and unionization drives for lessons to emulate and avoid. On the management side, companies – particularly if they are unionized – should expect unions to follow the new playbook. Employers will need to study the lessons as well and prepare for a more confrontational labor environment. Companies other than the D3 should firmly resist the pressure to align their contract expiration and avoid what is likely to be a confrontational spring in 2028. This is only a small example of how companies would benefit from the 360° perspective that game theory and scenario wargaming give in complex and uncertain times.
GM workers ratify new deal narrowly; analyst expects less drama with Ford, Stellantis
November 17, 2023 // "It was really closer than it should’ve been," said Mike Martinez. Nevertheless, General Motors workers voted to ratify the UAW contract - with nearly 55 percent of the membership voting yes. "This wasn’t pretty, there was a 46-day strike," said Martinez. "They got chippy."
Here’s why the UAW’s record deals with GM, Ford and Stellantis aren’t getting full support
November 16, 2023 // At least three major assembly plants representing 9,730, or 21%, of GM’s 46,000 UAW-represented employees have voted against the pact. They include 61% against at Lansing Delta Township plant in Michigan, which builds Buick and Chevrolet crossovers; 67.5% rejection at a Cadillac and GMC crossover plant in Spring Hill, Tennessee; and 52% opposed at GM’s Flint, Michigan, truck plant. A handful of other smaller plants also have voted against the deal. At Ford, the automaker’s Kentucky Truck Plant — its largest in terms of employment and revenue — had 54.5% of members vote against it. The UAW reached tentative deals with each of the automakers, so each is voted on separately. One or more could fail, while another ratifies. They are not contingent on one another.