2 Biden priorities clash as a major strike threat looms for GM, Ford, and Stellantis
Revvin’ the labor engine… Tensions are mounting between the 150K-member United Auto Workers union and the Detroit Three automakers (GM, Ford, Stellantis) as the parties negotiate a new contract. Central to the talks is the EV transition and what it means for workers — a conflict that could pit two of President Biden’s top priorities (green tech and pro-labor policy) against each other. The main issue: most EV-battery plants aren’t unionized. Meanwhile, Biden wants two-thirds of all new cars to be electric by 2032.
Charging: Calling for a “just transition” to EVs, the UAW wants workers at EV plants to be protected by the same wage/safety standards enjoyed at union plants. Automakers want more flexibility to compete with nonunion rivals like Tesla and Toyota.
Keyed up: Typically the UAW holds strikes against one company at a time, but this year it says a strike against all Big Three is possible. This week, UAW President Shawn Fain literally threw proposals from Jeep maker Stellantis into the trash.
It’s a stick(y) shift… The UAW has blasted the Biden admin over not tying its big EV incentives (like the $9.2B loan Ford received in June to build three US battery factories) to wages or working conditions. Pay at one Ohio EV-battery plant owned by GM and LG Energy starts at $16.50/hour, compared to the $32/hour workers earned at a traditional car plant in the area that closed in 2019.
Adoption isn’t just on consumers… it’s also on workers, companies, and governments. The UAW, which has refused to endorse Biden’s reelection, says the president must link federal incentives with union standards. While EVs require about 30% less labor to produce than gas cars, the industry needs to get workers on board to scale the electric transition. If not, a pricey strike could ensue. The 2019 strike against GM cost the company $4B.