Posts tagged TESLA
Toyota Gives 9% Pay Bump to Most U.S. Auto-Factory Workers, Following UAW Gains in Detroit
November 2, 2023 // The UAW recently concluded a more-than-six-week strike at the Detroit automakers, after reaching proposed contracts at all three car companies for roughly 146,000 U.S. auto workers. Those agreements include a 25% general wage increase over four years, which the UAW says is more than members have received in the past 22 years combined. When cost-of-living adjustments are factored in, the increase would boost the top pay for Detroit Three production workers to about $42 an hour at the end of the contract’s term in 2028. UAW President Shawn Fain has promoted the wins in Detroit as providing momentum to a union that is looking to expand its membership more broadly in the auto industry, a goal that has been elusive in the past. He has signaled that the UAW’s next targets are U.S. factories at Toyota, Tesla and foreign-owned automakers that currently don’t have union-represented workers in the U.S.
Bad vibes are sending shudders through Tesla, GM and Ford
October 30, 2023 // EV-specific factors include higher average costs than gas-powered models and many consumers lack of familiarity with the tech. "I see EV sales plateauing and even falling over the next 6 months," Brauer predicts. Threat level: "Investors have been too optimistic about EV demand growth . . . slowing demand growth is coming sooner than expected, especially in the high-end EV market," said Lee Hang-koo of Korea Automotive Technology Institute tells the Financial Times.
GM reaches tentative deal with UAW, ending strikes at Detroit automakers after six weeks
October 30, 2023 // It’s not immediately clear how much the labor deals will increase labor costs for the companies, which had argued that giving in to all of the union’s demands would affect their competitiveness and even long-term viability. Deutsche Bank recently estimated the overall cost increase of the agreement at Ford to be $6.2 billion over the term of the agreement; $7.2 billion at GM; and $6.4 billion at Stellantis.
UAW members aren’t all assembling cars. More and more are unionized grad students
October 23, 2023 // These days, the "A" in UAW might as well include academia, as roughly 100,000 of the union's 383,000 members work in higher education. They include graduate students who work as teaching and research assistants, clerical and technical workers, adjunct professors and postdocs.
Tesla Workers Are Union “Members Of The Future,” UAW President Says
October 19, 2023 // Tesla is likely the most "problematic" carmaker for the UAW as CEO Elon Musk strongly opposes unionization at the company's plants. The United Auto Workers and Workers United trade unions have sought to unionize Tesla's workers in California and New York, respectively, but Elon Musk has thwarted all attempts so far. In addition, as Teslarati points out, numerous Tesla workers have become millionaires in the past despite being non-unionized, thanks to the company's stock-based compensation programs. In an infamous tweet from May 2018, Musk seemed to threaten Tesla workers with the loss of stock options if they formed a union. "Nothing stopping Tesla team at our car plant from voting union. Could do so tmrw if they wanted. But why pay union dues & give up stock options for nothing?" read the tweet. The National Labor Relations Board ordered Musk to delete the tweet, but the billionaire appealed the court order.
Prolonged UAW strike will ‘collapse’ supply chains, Ford chair warns
October 18, 2023 // “This should not be Ford versusthe UAW,” Ford said. “This should be Ford and the UAW versus Toyota, Honda, Tesla, and all the Chinese companies that want to enter our home market. Toyota, Honda, Tesla and the others are loving this strike because they know the longer it goes on, the better it is for them. They will win and all of us will lose.” UAW President Shawn Fain disagreed with Ford’s framing. “It’s not the UAW and Ford against foreign automakers,” Ford said, in remarks published by Detroit News reporter Jordan Grzelewski. “It’s autoworkers everywhere against corporate greed.” Ford warned that an extended strike would challenge supply chains not only at the automaker, but throughout the economy.
Newsom vetoes bill to expand worker layoff protections to contract labor
October 10, 2023 // The bill would have extended the WARN-required notice period of impending layoffs, closure or relocation — which applies to companies of a certain size — to 75 days from 60 days. For the rules to apply to employees of labor contractors, they would have been required to work at least six of the 12 months and at least 60 hours preceding the date on which a mass layoff notice is required. Employees of a labor contractor completing a temporary project with a defined end date would have been exempt. Newsom also questioned the bill’s expansion of the kinds of companies that would be subject to the WARN Act to include chain businesses, even when such layoffs might be geographically far apart and unrelated.
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).
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.
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.