GM is facing criticism from the United Auto Workers (UAW) labor union and U.S. Senator Bernie Sanders for paying workers at the Ultium Cells LLC plant in Warren, Ohio considerably less than assembly plant workers.
Per a report from Reuters, workers at the Ultium Cells LLC plant in Warren earn a starting wage of $16.50 per hour, with an opportunity to earn $20 per hour after seven years. By comparison, workers at the GM Lordstown Assembly plant in Ohio earned upwards of $32 per hour or more prior to the plant closing in 2019.
In a video posted this week, Sanders criticized GM for underpaying workers at the Ultium Cells LLC plant, even though the automaker is receiving substantial U.S. government tax credits.
“That is to say the least going in absolutely the wrong direction,” Sanders said in the video. “The government is putting a lot of money into transitioning our economy to a non-fossil fuel economy.”
Sanders posted the criticism following a meeting with UAW President Shawn Fain. Fain, who was elected UAW president last month, said that the Ultium plant will be eligible for more than $1.2 billion a year in U.S. battery production tax credits when it hits full production. Under the Inflation Reduction Act (IRA), which went into effect last year, businesses are eligible to receive a $45 per kilowatt tax credit for battery production.
“We want to see workers get a fair shake, not just the CEOs of the companies,” Sanders said.
Meanwhile, workers at the Warren plant have voted to join the UAW, but have yet to reach a first contract agreement. In a statement, UAW President Fain said that there is “no excuse” for automakers to set up EV manufacturing facilities in Detroit without a unionized workforce, while also vowing to do whatever was necessary to meet UAW objectives during contract negotiations.
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