Posts tagged TESLA
Billionaire investor slams President Biden for his UAW union support
October 5, 2023 // Barry Sternlicht, CEO of investment fund Starwood Capital, sees Biden's support of the UAW as counterproductive to his fight against inflation. "The UAW is on strike, they're asking for 40% wage increases. What's wrong with the Biden administration, why is he so unpopular? It's inflation. It's the economy. People have less in their pockets," Sternlicht told CNBC Friday. "But now he is backing unions who are forcing wages up, which is creating the inflation that he has to kill."
Electric Vehicle Factories Are Overwhelmingly Nonunion. The UAW Strike Could Change That.
September 20, 2023 // Nonunion companies are also getting in on the EV facility boomlet. Tesla plans to expand to a lithium refinery in Texas and produce battery cells, packs, and modules in California and Texas. Other companies investing in battery plants include BMW (South Carolina), Honda (Ohio), Hyundai (Georgia), Mercedes-Benz (Alabama), Toyota (North Carolina), Volkswagen (Ontario, Canada), and Volvo (South Carolina). The construction boom continues in nonunion plants. A variety of battery manufacturers are building new facilities, too. These include the Japanese company AESC (Tennessee, Kentucky, and South Carolina), the Chinese-owned Gotion (Michigan), South Korea’s LG Energy Solution (Arizona and Michigan) the start-up Our Next Energy (Michigan), Japanese-owned Panasonic (Kansas), South Korean SK Battery America (Georgia), and Redwood Materials, a recycling company (Nevada and South Carolina).
Chances of costly autoworker strike extra high amid Biden’s EV push
August 24, 2023 // This time around, labor negotiations are taking place under much different circumstances, with Detroit automakers in a precarious spot in an unsettled industry. Yes, they've been raking in huge profits from high-priced pickup trucks and SUVs. But they're also investing billions of dollars to develop future EVs that consumers are still hesitant to buy. Of note: In a rare move, Biden entered the fray last week, urging both sides to come to an agreement. "I support a fair transition to a clean energy future," the president said in a statement.
The United Auto Workers Meet Electrification
August 22, 2023 // LeRoy and Whiton calculated in their report that battery factory subsidies will range from $2 million to $7 million per job over the ten-year duration of the 45X program. One of their case studies is the $3.5 billion BlueOval Battery Park in Marshall, Michigan. So far, the facility has been awarded $1.7 billion in state and local government subsidies, in addition to qualifying for an expected $6.7 billion in federal 45X credits. Yet wages at the battery plant will average around $45,000 a year. The gap between the sheer amount of money on the table for manufacturers and the quality of job it translates into is the IRA’s weakest link. “The states where these facilities are located should be publicly saying that in exchange for such subsidies the company should allow for voluntary [union] recognition votes,” LeRoy suggested.
The UAW vs. The Big Three: Why the union’s wish list isn’t ‘going to happen’
August 15, 2023 // The UAW's wish list would amount to $25 billion-$30 billion per automaker over the life of the contract. "That adds $35 to $40 per hour to active labor cost — an increase of roughly 60%," the source said. The impact being that automakers would return to the "bankruptcy era" and more than double the labor costs for GM, Ford, and Stellantis versus non-union automakers like Tesla (TSLA).
A big clash is coming for Detroit’s Big 3 automakers as their workers’ union gears up for another round of contentious negotiations
July 27, 2023 // "We have to be able to do whatever we have to do if you want to have these gains. The companies aren't going to freely give it," Fain said in June. Escalating tactics at the UAW predate Fain. In 2019, at the height of the union's corruption scandal, the UAW initiated a 40-day strike at GM's more than 30 US factories. The work stoppage helped the union notch wins on wages and job security, even as the company won the ability to close several factories. In the end, GM lost some $3.6 billion due to the strike. The union, which also covers workers in other industrial industries and some academic institutions, has also had high-profile work stoppages at John Deere in 2021 and the University of California in 2022. Fain has said he is not ruling out a strike in this round of talks, potentially at more than one company.
ESG Is a Front for Labor
July 24, 2023 // House Republicans have declared July “ESG month,” planning hearings and bills to push back against politicized environmental, social, and governance investing. Yet so far, lawmakers have almost exclusively focused on environmental issues. Republicans should also pay attention to the “S” in ESG, which labor unions are using to advance their agenda at the expense of workers, their own members, and even taxpayers — a problem that President Biden has significantly worsened. The 2023 proxy season, which started in January and ended in June, shows the union campaign in action. Union funds and their allies, such as the New York City Employees’ Retirement System and like-minded investment managers, introduced many ESG-focused shareholder proposals designed to accelerate unionization. Consider Apple, which was targeted by five New York City pension funds, multiple investment managers, and the SEIU Master Trust Pension Plan, among others.
Sean O’Brien’s summer of the strike
June 26, 2023 // It’s the spark for the combative spirit that permeates Teamsters headquarters, where a whiteboard charts a long-term battle plan on a timeline — “practice picketing,” “CAT trainings” (for “contract action teams”), “identify strike teams” … and finally, on the July 31 spot that marks the end of the current contract: “STRIKE.” Why strike now? As O’Brien himself acknowledged in his Senate testimony, UPS already offers the most plum jobs in the logistics industry, with driver salaries starting at $93,000. But O’Brien argues that the pandemic gave UPS workers the greatest leverage they’ve had in decades. In 2020, union members risked their health to keep packages moving. UPS’s profits surged and have remained high, with customers still hooked on the online shopping habits they adopted during the lockdowns. “Our members are fed up” and remain convinced, he said, that “the only concern that was being addressed was UPS’s bottom line and their balance sheet.” No better time, O’Brien reasons, for workers to go to the mat to demand wages beginning at $20 an hour, tighter safety provisions and an end to the two-tier employment system ushered in by the last contract.
Prominent auto analyst on UAW contract talks: ‘I think we’re going to see a strike’
June 22, 2023 // Auto analysts at Bank of America feel confident in the likelihood of a United Auto Workers strike of at least one of the Detroit automakers later this year — and they expect the union to secure wage and benefit improvements that result in 25% to 30% higher labor costs for the companies over the four years of the contract. That's according to comments made Wednesday by John Murphy, managing director and lead U.S. auto analyst in equity research at Bank of America, during the financial institution's annual "Car Wars" presentation. The event was hosted by the Automotive Press Association. John Murphy, managing director and lead U.S. auto analyst in equity research at Bank of America, expects UAW members to be on the picket lines this September against at least one of the Detroit Three automakers. “I think we’re going to see a strike on Sept. 15," said Murphy. The UAW's current contracts with Ford Motor Co., General Motors Co. and Stellantis NV expire Sept. 14. Talks on a new agreement are slated to start this summer. Murphy said he's highly confident in at least one strike happening, and that the chances of a subsequent strike at one of the other automakers is "much higher than normal."
Commute no more: US employees embrace telework
June 12, 2023 // Teleworking has become "part of a cluster of benefits and options that companies can choose to offer workers," said Nela Richardson from ADP. For potential employees, "it's a choice of whether or not you are willing to negotiate that or look for that in your job search," she added. But what employees really want, according to Richardson, is the flexibility to choose when they work. "It's not necessarily (that) I want to work from home, I want to be surrounded by dirty dishes and unmade beds,"she said. "It's the fact that I can choose what hours I work."