Whenever the United Auto Workers union begins negotiating a new contract with Detroit’s three automakers, threats of a strike are typically heard among union members
New vehicles sit in a parking lot waiting for transport at the former Fiat Chrysler Auto Plant, now owned by Stellantis, Monday, July 10, 2023, in Belvidere. Ill. Contract talks begin this week between the United Auto Workers and automakers.
At the union's behest, gone is the traditional friendly handshake between UAW bargainers and auto executives, a sign that the talks will be even more contentious than usual. Four-year contracts between the union and the companies will expire at 11:59 p.m. on Sept. 14. All three automakers have announced plans to build joint-venture factories with battery companies, in Indiana, Michigan, Kentucky and Tennessee. Once gas-powered vehicles are phased out, the union sees these plants as places where the automakers will move thousands of workers who now make engines and transmissions. Industry analysts expect EV sales to surge from 7% of U.S. new-vehicle sales to about 40% by 2030.
“They are likely to take a hard line on key issues like the battery plants and the other issues like getting rid of second-tier wages,” he said. The companies generally contend that their wages, profit sharing, health care and other benefits are the best in the industry. In addition, executives have argued that they're under huge financial pressure to develop electric vehicles and to pay billions for EV and battery factories.
Given the expectations of UAW members, Fain will be under pressure to deliver on the issues he has raised. Yet the companies won't give in to everything, Masters said.
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