General Motors and the United Auto Workers (UAW) labor union are poised to spar over wages for the automaker’s new battery plant.
Per a recent report from the Associated Press, the UAW issued a statement on Friday saying that General Motors had a “moral obligation” to pay high wages at its upcoming all-electric vehicle battery factories, adding that the automaker would need “to make sure these are good-paying union jobs like those of their brothers and sisters who make internal combustion engines.”
The UAW statement was issued in response to an announcement from GM regarding construction of a new battery cell manufacturing site at the GM Spring Hill Assembly plant in Tennessee.
The recently announced battery plant in Tennessee is the product of a $2.3 billion investment from General Motors and LG Chem. The plant will be owned and operated by Ultium Cells LLC, a joint venture between General Motors and South Korean chemical company LG Chem. The new Tennessee facility follows construction of another battery plant in Lordstown, Ohio.
General Motors has said that worker wages at the upcoming battery plants would be determined by Ultium Cells LLC.
The UAW statement looks to set the tone for upcoming negotiations between the union and automakers with looming contract negotiations in 2023. The conflict may also draw involvement from President Biden, who has promised “good-paying” union jobs in the push for greater all-electric vehicle development and adoption in the U.S.
Per the AP report, top union members earn more than $31 per hour at GM’s engine and transmission plants. However, following the announcement of the Lordstown plant in 2019, GM CEO Mary Barra indicated that workers would be paid less than top union wages in order to remain cost-competitive.
In 2009, union workers at the GM Brownstown Township plant in Michigan received $15 to $17 per hour producing battery cells for the Chevy Volt hybrid, now discontinued.
It’s estimated that the transition to all-electric vehicle production could result in 25 percent to 30 percent fewer workers required to build an equivalent number of vehicles when compared to internal combustion.
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Comments
Just keep asking for more money so the big corporations will move production to other countries to be price competitive. The bottom line of non union work is the pay is determined by skill set, education level, what the markets will pay for those skills and based on location. If you have a degree in chemistry or computer science, there is a shortage and the pay goes up to attract workers.
That politicians and politics is also part of the mix is a huge factor in all this.
I don’t have a problem with union jobs, my problem is the unlevel playing field. While Detroit based American manufacturers pay union wages , European companies come and locate unionized South states; Alabama, South Carolina, Tennessee and gain huge unfair advantage against American rivals. So either force them to pay union equivalent wages or allow American companies too to set up factories in the same states with non-union workers.
That is the problem of the states that have unions. Not the problem for southern states that attract new investments from foreigners and American companies. The big 3 would move to southern states too if it would not cost a fortune to dump all of their union plants. So what you want more government inference. Great! The US government is already bloated and as large as the average broad presently. The free market decided and southern states are more appealing for new plants. Voting and having terrible policies in place have consequences. Life is not fair.
Each state can be seen as its own country and each competes against each other. So if a state does not make itself attractive that is not the fault of another state. South Carolina will continue to attract businesses along with the rest of the southeast and Texas Republic.
Yes, jobs are moving to the southern states
Mucho trabajo en Los Estados de Mexico.
Yup exactly. The union workers have become spoiled and entitled in a way. People need to be ready to adapt to whatever happens in an economy. As there are truly no careers. Even for someone like me who has a profession. I am still beholden to other people wanting to spend their money for the type of work I do. Clients do not owe me anything. The only guarantees for work are civil service work. Like doctors, policemen, fire fightermen, etc….
Americans as a whole will continue to be outpaced as many aren’t interested in these high-tech fields. It is why we will have to continue to import skilled labor. And there will be a point in time where people mostly want to go to our rival countries as the USA is not attractive for foreign workers. The EU attracts a lot of talent, the UK does, and I dare say it China in the near future.
Unions have been screwing up U.S. market plants for decades. They wonder why so much manufacturing goes off shore, really it’s no great secret. The market will determine wages. Like everything else it is supply and demand. Not forced wages.
Engineers and cheaply built components have been screwing up gm for decades, who you kidding. Yes, like in any position in any type of manufacturing their are poorly performing people. If you want to get rid of poor employees
start in the government union sector.
Can’t wait to read the books and articles that will be written about this latest GM chapter in history.
TR. The story won’t compare to the great wall of China. I wish I would be here to read it but doubt it. lol
Enough about electric vehicles. Not only would electric vehicles reduce the need for petroleum thereby eliminating many jobs, but the power grid just cannot handle the load when everyone plugs in to recharge.
All those union pukes that voted for Biden. They just don’t get it yet, but they will in the wallet!
The phrase I keep hearing is “Electric Vehicles are coming weather we like it or not”, That’s not exactly a comforting business model for success going forward. Mary has made it very clear she’s all in, and the future of GM depends on it. Pretty bold for an Executive that most likely will not be here in 3-5 years.
Just add the cost of labor to the electric vehicles produced and the Governments of the Countries where they are sold will subsidize the additional cost with large cash backs on electric vehicles that will be added to the tax bill of those that cannot afford any vehicle. I have no issue with people making a wage that makes life comfortable and enjoyable and if it takes union pressure to get those wages well than I guess they play a positive role in the process. Large corporations like GM would pay as little as possible so their bottom line looks better and they keep shareholders happy. Their best shareholders are their workers so keep them the happiest!
I agree, the companies should give all the employees stock/shares in the companies performance results. It should be part of their basic salary, you want to build loyalty, competence, competitiveness and pride. That would be a good start I think.
My employer recently did that making us all shareholders of company stock that is near the bottom in stock price versus our competitors. We’ve all heard the comparisons to Amazon and Tesla but we all know every corporation will not reach anywhere close to those levels. So hopefully my grandkids get something out it..
(Fact) GM was bailed out of bankruptcy by the American taxpayers, “to keep good paying jobs in the USA” they said.
(Fact) Now they close US plants like lordstown and offshore jobs and products like the Blazer.
(Fact) Now they are planning to open battery plants under a much lower pay scale, while the executives take obscene compensation.
(Fact) GM has misled all the American taxpayers that bailed them from bankruptcy.
You thumbs down Mary Barry cronies may not like this but it is all still true.
Baloney. Utter nonsense. GM didn’t destroy the credit market. Politicians and the banks did. There was no credit and GM and the others went to DC to survive. They walked into a snake pit of liars. They became the face for the mistakes the the politicians and banks and their screw ups. Then when they got some credit, the fools that were placed to administer that credit decided to continue to play their games. There was no reason to remove Waggoner to install an old goof that knew nothing about the industry, yet they did. There was no reason to give Chrysler to the UAW who sold to Sergio for pennies, yet they did. There was a somewhat stupid reason to undervalue the stock offering but in no uncertain terms, that loss goes directly to Rattner. Anything else is total BS. Wake the Eff up, you bought into a load of lies.
Fact , gm unions pensions were bailed out of bankruptcy by American taxpayers . Gm brands would have survived under different ownership .
Stop repeating the gm bailout mistruth
No problem with unions looking out for their members . Electric vehicle production will tank USA employment at big three
I am a union member . Workers are lied to by union leadership .
Lol. Here we go.
Just because you don’t like what you read doesn’t make it false.
I do agree that the union leadership lied to its members.
I shook hand with terry Dittes as our plant was unallocated.
He told us he had our backs. He would leave no stone unturned.
We never heard from him again as our plant closed.
I thought dues are for representation, not to get screwed by international leadership.
The GM pensions got funded because the Pension Guarantee Corporation would have been bankrupted with the result being the cost would have been higher. The others such as the small dealers and subsidiary employees lost to make up for that funding. There was no win no matter what. It still has no regard to how the credit for the business community was destroyed by some and their politics. GM and the rest were forced to run on razor thin margins to appease the politics of the day. And when it all came to a head, of all the finances that needed help, those were in need and also a willing cause walked away with everything intact. But the car business was made the fall guys for all of it.
Now I see why the big 3 are so big on ev s 1/3 less employees and wages negotiated by some quasi corporation.
Biden is bringing in Maxine Waters as lead union negotiator.
Gotta to look at old episodes of Oz for new break in moves….
The only problem with unions is that they protect “Slugs” in the work place. I also don’t see GM putting limits on stockholder profits nor do I see Barra making low wages. A job is a job is a job.
The problem is not the unions as one person commented on, it’s corporations trying to get people to work for less money. Unions have always set the scale for better wages better benefits and safe for conditions there’s no doubt about that.
The unions will screw up every manufacturing plant in the US until everything goes to china. I wonder if they are taking money from the chinese to screw up the manufacturing done in the west. Wake up people. Screw the unions
The UAW Should be Careful. GM may decide to build this plant in Mexico…
So if the battery plant will be GM/UAW, will laid off works have first dibs on and/or be able to transfer to those jobs before hiring off the streets???
GM was slick- the battery division is a separately owned division
Ovlbvioisly to cut labor costs.
When everyday folks can’t find middle class wages, quality of life suffers
GM pensions are handled by Fidelity, not GM. This didn’t just happen after the bailout of gm.
Trump will solve all this in 24.
It’s time for GM to get a new younger and less expensive CEO. Barra is not worth what she has been getting paid. Come on GM,,,,Barra has over 30 years in the company,,,It’s time to have her walked out the door…..just like so many other salary employees……
Just because union leaders want us to vote democrat doesn’t mean we do
Most of auto workers see writing on the wall
Most i know dont believe in gun control, paying people for not working (welfare),
And letting in every illegal that hits our borders
So we vote republican
Ford worker
Sure electric cars are plenty fast and plenty expensive when they fail This country was made great by oil plain and simple Electric cars are going to put millions of Americans out of work This country needs jobs especially because of the pandemic and those jobs are tied to one thing OIL!!!!!!!!
Hilarious, the job should pay what it’s worth, if it’s a job where you stand up all day and it’s back breaking and you have to think and it should pay more if you putting vegetable cans in a bag it pays less. It’s the typical Union talk that we want more money we want more money we want more money. Now you know why so many GM plants are in China and other places. I really hope to God and GM closes every automotive plant in the US throws out every union worker and makes everything in Canada Mexico and Asia. Then what the hell will the union leaders do?
Is there a real reason to have a union today? Health insurance is available to anybody if you pay for it, you can put aside for your retirement through many federal plans and taxes, the only people wanting a union are those that don’t know how to screw in a lightbulb on the factory floor
At the non union manufacturing plants, are people quitting their jobs because of less wages than a union plant? When a vehicle is priced at $30,000 and a similar one of another manufacture is priced at $36,000, what do you think most will by?
The car they like the best as the price is no object;