UAW President Aims to Expand Battle to Tesla and Toyota Amid Contract Wins with Detroit Automakers

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ICARO Media Group
News
03/11/2023 21h06

United Auto Workers (UAW) President Shawn Fain is setting his sights on non-unionized automakers, including Tesla and Toyota, following the union's recent contract wins with Detroit automakers, according to CNBC reports. Fain plans to leverage the record contracts achieved through intense negotiations and labor strikes with General Motors, Ford Motor, and Chrysler-parent Stellantis to bolster the UAW's organizing efforts elsewhere.

With the UAW's membership declining from approximately 700,000 in 2001 to 383,000 at the start of this year, Fain sees the expansion as crucial for the union's bargaining efforts and growth. By utilizing the "Big Three" contracts as a basis, the UAW aims to extend its reach beyond Ford, GM, and Stellantis, targeting what Fain refers to as the "Big Five or Big Six" by the expiration of their 4½-year contracts in April 2028.

The recently secured contracts include significant wage increases, with top pay set to exceed $40 per hour, the reinstatement of cost-of-living adjustments, enhanced profit-sharing payments, and other attractive pay, healthcare, and workplace benefits. The ratification of these contracts is yet to take place, but Fain already notes significant interest from non-union automakers in light of the tentative agreements.

Notably, Fain has directed his attention towards Toyota, following the automaker's recent confirmation of wage hikes at its U.S. factories. Toyota's move to increase hourly manufacturing employee wages by approximately 9% translates to a rate of $34.80 per hour for workers in Kentucky. Fain humorously referred to this pay raise as the "UAW bump," emphasizing that Toyota's action stems from the growing threat posed by the UAW.

However, the UAW has faced challenges in organizing non-union automakers in the past. Efforts to unionize foreign-based automakers such as Volkswagen and Nissan Motor in the U.S. have fallen short of generating sufficient support. Tesla's Fremont plant in California has also been a target in previous organizing attempts, with minimal success thus far.

Despite the hurdles, Fain remains optimistic and believes organizing Tesla, under the leadership of CEO Elon Musk, is "doable." Fain expressed confidence in the UAW's ability to triumph in the face of any opposition, pointing out that it ultimately depends on Tesla employees deciding whether they want their fair share or if they prefer Musk to spend their expenses on venturing into outer space.

Tesla has historically clashed with union proponents, with instances of monitoring employees' social media activities and terminating the employment of a union activist, as well as violating federal labor laws. These incidents have fueled ongoing tensions between the company and the UAW.

It remains to be seen whether the UAW's recent contract wins and Fain's determination to expand the battle to non-unionized automakers will have a significant impact. The road ahead may still present obstacles and require substantial efforts, but the UAW is positioning itself to fight for workers' rights and workforce representation in the ever-evolving automotive industry.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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