Posts tagged GM
As Predicted, UAW Strike Remains Limited, Spares Automakers From Full Walkout
October 11, 2023 // As CEI noted when the strike began, “The claim that this ‘stand up’ approach creates the maximum pressure is bogus. History clearly shows that if a union wants a serious confrontation with the manufacturers, it has all of its members on the picket lines. … The fact that [UAW President Shawn] Fain hasn’t ordered that suggests he doesn’t actually want that or doesn’t think the union could sustain it.” After two weeks, Fain tacitly conceded there had been no progress in the talks, so he upped the pressure to 25,000 workers on the picket lines, or about one-sixth of the UAW’s members. To be clear, this is causing problems for manufacturers. Fain has targeted the plants where work stoppages can cause the most economic damage. Losing $200 million is still real money even for a corporation like GM. But the UAW’s call for wage increases of up to 36 percent, well beyond the 20 percent the auto makers have offered, is something the manufacturer hasn’t budged on yet. And it isn’t likely to so long as only one-sixth of the UAW members are striking.
Musk May Face Someone Else Who’s Ready for a Cage Fight
October 10, 2023 // The long-running decline in union membership mirrors the decline in Detroit’s share of the US vehicle market. That was 90% during the industry’s, and organized labor’s, 1960s heyday. By the time of the debacle of 2009, it had fallen to about 50%. Now it’s closer to 40%. As Kevin Tynan, automotive analyst at Bloomberg Intelligence, points out, the Big Three have effectively downsized by ditching cheaper models and focusing on higher-priced trucks and SUVs to chase profits. As they attempt to open up a new avenue of growth, EVs, they are confronted with big near-term costs that higher pay settlements will exacerbate. “The UAW must broaden its view if it is going to increase its membership,” says Tynan, adding “they have to stop only going back to GM, Ford and Stellantis. There is no more blood in those stones.” The UAW has been aware of this for some time, which is why it targeted foreign automakers’ factories — so called “transplants” — and Tesla itself at various points over the past decade. Such effort has been largely in vain. Tesla, meanwhile, has become profitable at scale only recently. The company’s identity as a disruptive newcomer, with plants far from the UAW’s heartland around the Great Lakes, is another barrier. It is harder to entice workers into a union when their employer is hiring at breakneck speed rather than shedding thousands of jobs. Tesla has also pushed back aggressively against unionization, as those NLRB rulings attest (Tesla is appealing several of these).
Workers at Mack Trucks set to strike after rejecting tentative contract deal
October 9, 2023 // Union workers at Mack Trucks have voted down a tentative five-year contract agreement reached with the company and plan to strike at 7 a.m. Monday, the United Auto Workers union says. Union President Shawn Fain said in a letter to Mack parent company Volvo Trucks that 73% of workers voted against the deal in results counted on Sunday. The UAW represents about 4,000 Mack workers in three states. Union leaders had reached a tentative agreement on the deal on Oct. 1. The deal included a 19% pay raise over the life of the contract with 10% upon ratification. There also was a $3,500 ratification bonus, no increase in weekly health care contributions, increased annual lump sum payments for retirees and a $1,000 annual 401(k) lump sum to offset health care costs for employees who don’t get health insurance after retirement. Fain said in his letter to Volvo Trucks’ head of labor relations that employees working early Monday will exit the factories after performing tasks needed to prevent damage to company equipment.
GM is shaping up to be the hardest hit by the UAW strike
October 9, 2023 // UAW members have been on strike for more than three weeks against Ford, GM, and Jeep-maker Stellantis, demanding hefty wage increases, an end to the tiered wage system, and more job security in the EV age, among other key issues. The UAW, led by President Shawn Fain, is taking a new approach as the union strikes all three companies at once for the first time. He has announced three targeted work stoppages since the strike began September 15, and GM is the only company that has been targeted all three times. Ford and Stellantis, meanwhile, have only been hit twice each. GM narrowly avoided a fourth strike Friday with an offer that delayed Fain's weekly update for members. The union president added no new strike targets, despite being prepared to shut down production at GM's highly profitable SUV factory in Arlington, Texas. In the face of this threat, Fain said, the UAW nabbed a win on union representation for future battery plants.
GM agrees to place EV battery manufacturing under UAW agreement
October 7, 2023 // General Motors (GM) has agreed to place battery manufacturing for electric vehicles (EVs) under its main agreement with the United Auto Workers (UAW) union, UAW President Shawn Fain announced on Friday. Fain said the union won’t expand its strike against the Big Three automakers following the the last-minute development in negotiations. “We’ve been told for months that this is impossible,” Fain said. “We’ve been told the EV future must be a race to the bottom. And now we’ve called their bluff.”
GM secures new $6 billion credit line as UAW strike costs reach $200 million
October 5, 2023 // General Motors secured a new $6 billion line of credit as the automaker braces for additional strikes by the United Auto Workers union. The targeted strikes have already cost the automaker $200 million during the third quarter, GM said Wednesday. The new line of credit is “prudent” to bolstering GM’s balance sheet amid expectations that the union may expand and prolong strikes against the company, GM CFO Paul Jacobson said.
Op-ed: A Raise for Auto Workers May Imperil Biden’s Electric Vehicle Ambitions
October 5, 2023 // Ford CEO Jim Farley said the UAW's proposals could send the automaker into bankruptcy, while Barra said they were not "realistic." Dan Ives, research analyst for Wedbush Securities, said in a note to investors that the UAW's demands, if fully accepted, could cause automakers "to pass these costs onto the consumer" by increasing E.V. prices by as much as $5,000 each. By visiting an active picket line, Biden made his preference clear in the fight between unions and management. But depending on how the negotiations go, he may not be able to have it both ways: Either UAW members can get a big raise, or automakers can push forward in the transition to electric vehicles.
Ford makes new offer in US labor dispute, GM furloughs more workers
October 4, 2023 // The UAW declined comment Tuesday on Ford's new offer. The UAW said on Monday it presented a new contract offer to General Motors (GM.N). GM said despite the offer "significant gaps remain." The UAW also held a new round of bargaining with Chrysler-parent Stellantis (STLAM.MI) Monday. Earlier Tuesday, GM said it furloughed 163 UAW workers at GM’s Toledo Propulsion Systems plant that makes transmissions for both the automaker's Missouri and Lansing Delta Township assembly plants that are on strike.
Big Three automakers idle thousands of workers as UAW strike rages on
October 4, 2023 // Ford Motor on Monday furloughed 330 workers in Chicago and Lima, Ohio, adding to the 600 workers the automaker laid off last month at an assembly plant in Wayne, Michigan. General Motors, which on Tuesday reported a 21% increase in sales for its third-quarter earnings, has laid off more than 2,100 workers across four states. Stellantis (the parent company of Chrysler, Dodge, Jeep and Ram) has idled nearly 370 workers, Reuters reported, including 68 workers in Perrysburg, Ohio.