Raynger24
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Please let these talks go well!
The United Auto Workers (UAW) union will start contract talks with the Detroit Three automakers beginning Thursday, July 13th. The talks come as Detroit automakers, like their global counterparts, have been focused on cost reductions, to help accelerate a shift from gasoline-powered vehicles to electric vehicles (EV).
WHO IS THE UNION NEGOTIATING WITH?
The UAW is negotiating with GM, Ford and Stellantis.
Ford's annual filing showed about 57,000 of its hourly employees in the United States were represented by the UAW. The UAW has historically picked one of the Detroit Three to negotiate with first that sets the pattern on which subsequent deals are based. UAW's new president has promised things will be different this time and analysts have said the odds have risen for strikes, including simultaneous walkouts at multiple automakers.
WHAT ARE THE UNION'S DEMANDS?
The UAW is pushing automakers to eliminate the two-tier wage system under which new hires earn as much as 25% less than veterans. The union will push to restore pay improvements tied to the cost of living and retiree benefits cut during the 2008-2009 economic crisis. The UAW also wants strong salary increases citing generous executive payouts and large U.S. federal subsidies for EV sales. The UAW also is aiming to get agreements that would allow the UAW to represent hourly workers at joint-venture EV battery plants opened or planned by the Detroit Three. The union, which represents about 150,000 U.S. hourly workers at Detroit's Three, is not afraid to go on strike at any of the automakers . The UAW has been wary of the industry shift to EVs and recently called on the Biden administration to soften its proposed vehicle emission cuts that would require 67% of new vehicles to be electric by 2032. EVs require fewer parts to build and industry officials have said that will result in a need for fewer workers. The UAW has said there should be no jobs lost because of the EV shift.
WHAT DO AUTOMAKERS HAVE TO SAY?
The Detroit Three want to close the cost gap they have with foreign automakers with non-unionized U.S. factories. Ford sources estimate that their U.S. labor costs are $64 an hour, compared with an estimated $55 for foreign automakers and $45 to $50 for EV leader Tesla . The companies also want greater flexibility in how it uses its U.S. workers to increase efficiency and cut costs as the industry shifts to EVs.
Ford CEO Jim Farley said "success in this new world will require us to adapt. Some jobs will be disrupted, and some will be created." Late last month, Ford had another round of salaried-worker job cuts.
WHAT IS AT STAKE?
A potential strike could hit at a time when automakers are ramping up efforts to maximize gasoline and EV vehicle production to capitalize on demand for new vehicles. A strike would be another blow, following supply-chain disruptions that hurt production and profits during the pandemic. Fewer cars produced would hit inventories at vehicle dealers that are also trying to cash in on the demand.
WHAT DO ANALYSTS EXPECT?
"We see a strike as likely." "We expect the UAW's new leadership will want to prove itself to the rank-and-file membership by trying to squeeze everything it can from the automakers," Fitch Ratings analyst Steve Brown said."
EDIT: PLEASE FOLLOW FORUM RULES AND DECORUM.
The United Auto Workers (UAW) union will start contract talks with the Detroit Three automakers beginning Thursday, July 13th. The talks come as Detroit automakers, like their global counterparts, have been focused on cost reductions, to help accelerate a shift from gasoline-powered vehicles to electric vehicles (EV).
WHO IS THE UNION NEGOTIATING WITH?
The UAW is negotiating with GM, Ford and Stellantis.
Ford's annual filing showed about 57,000 of its hourly employees in the United States were represented by the UAW. The UAW has historically picked one of the Detroit Three to negotiate with first that sets the pattern on which subsequent deals are based. UAW's new president has promised things will be different this time and analysts have said the odds have risen for strikes, including simultaneous walkouts at multiple automakers.
WHAT ARE THE UNION'S DEMANDS?
The UAW is pushing automakers to eliminate the two-tier wage system under which new hires earn as much as 25% less than veterans. The union will push to restore pay improvements tied to the cost of living and retiree benefits cut during the 2008-2009 economic crisis. The UAW also wants strong salary increases citing generous executive payouts and large U.S. federal subsidies for EV sales. The UAW also is aiming to get agreements that would allow the UAW to represent hourly workers at joint-venture EV battery plants opened or planned by the Detroit Three. The union, which represents about 150,000 U.S. hourly workers at Detroit's Three, is not afraid to go on strike at any of the automakers . The UAW has been wary of the industry shift to EVs and recently called on the Biden administration to soften its proposed vehicle emission cuts that would require 67% of new vehicles to be electric by 2032. EVs require fewer parts to build and industry officials have said that will result in a need for fewer workers. The UAW has said there should be no jobs lost because of the EV shift.
WHAT DO AUTOMAKERS HAVE TO SAY?
The Detroit Three want to close the cost gap they have with foreign automakers with non-unionized U.S. factories. Ford sources estimate that their U.S. labor costs are $64 an hour, compared with an estimated $55 for foreign automakers and $45 to $50 for EV leader Tesla . The companies also want greater flexibility in how it uses its U.S. workers to increase efficiency and cut costs as the industry shifts to EVs.
Ford CEO Jim Farley said "success in this new world will require us to adapt. Some jobs will be disrupted, and some will be created." Late last month, Ford had another round of salaried-worker job cuts.
WHAT IS AT STAKE?
A potential strike could hit at a time when automakers are ramping up efforts to maximize gasoline and EV vehicle production to capitalize on demand for new vehicles. A strike would be another blow, following supply-chain disruptions that hurt production and profits during the pandemic. Fewer cars produced would hit inventories at vehicle dealers that are also trying to cash in on the demand.
WHAT DO ANALYSTS EXPECT?
"We see a strike as likely." "We expect the UAW's new leadership will want to prove itself to the rank-and-file membership by trying to squeeze everything it can from the automakers," Fitch Ratings analyst Steve Brown said."
EDIT: PLEASE FOLLOW FORUM RULES AND DECORUM.
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