Tesla Motors CEO Elon Musk has weighed in on the ongoing contract negotiations between the UAW labor union and the Big Three Detroit automakers (GM, Ford, Stellantis), saying that the union’s demands would effectively bankrupt the companies. UAW members are currently striking at facilities for all three of the Detroit makes in a targeted strike strategy. Tesla workers are currently not unionized.
As reported by Bloomberg, Musk criticized the UAW’s initial demands in a post to X, formerly Twitter:
They want a 40% pay raise *and* a 32 hour workweek. Sure way to drive GM, Ford and Chrysler bankrupt in the fast lane.
— Elon Musk (@elonmusk) September 26, 2023
The UAW has reportedly lowered its demands for a pay increase from 40 percent to 36 percent. GM has proposed a pay increase of 20 percent, which the UAW has rejected. Among the UAW’s concerns are that the broader auto industry’s shift to electric vehicles will result in fewer jobs and reduced wages, as EVs typically require fewer components to produce than equivalent ICE vehicles.
Per Bloomberg, Tesla, as well as other all-electric vehicle companies like Rivian and Lucid, are currently not unionized. Rather, these companies typically offer restricted stock units and employee stock purchase plans as a significant portion of employee compensation.
The UAW attempted to organize Tesla workers at Tesla’s plant in Fremont, California in 2017, but failed to get a vote. The U.S. labor board ruled in 2021 that Tesla repeatedly violated federal law at the Fremont facility, with accusations of “coercively interrogating” union supporters and firing an employee for union activism. Tesla is currently appealing the ruling. The Workers United union has also accused Tesla of firing dozens of workers at the company’s plant in Buffalo, New York in retaliation for participating in a union campaign.
GM President Mark Reuss has also addressed the UAW’s demands, saying last week that “if we don’t continue to invest, we will lose ground – quickly. Our competitors across the country and around the world, most of whom are non-union, will waste no time seizing the opportunity we would be handing them.”
The UAW is currently striking at all three of the Big Detroit automakers, a first for the union. The UAW is employing a targeted strike strategy wherein workers at select facilities are called on to strike, rather than every UAW member at every facility all at once. The strategy is believed to provide UAW negotiators with greater flexibility. It’s estimated that roughly 18,300 UAW members are currently on strike, or roughly 12 percent of UAW membership.
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Comments
He’s right you know. Plus the US government with the wrong leadership would bail them out… AGAIN!
GM was not bailed out. GM was sent into bankruptcy by Barry. This is something all shareholders know very well, unfortunately
He isnt right. He always has something to say about everything and it is getting annoying. Bail them out? Government (you and me) are literally bankrolling all of musks acquisitions (tesla, spacex etc). all government grants.
GM was not bailed out – they were sent into bankruptcy by Barry – wiping out all shareholder value. The current GM is not really GM. It’s like the Cleveland Browns. They actually play in Baltimore as Ravens. But since there is an expansion team by the same name, using the same uniforms, people still correlate the expansion Browns with the original franchise. The original franchise is now in Baltimore. Same thing with GM. They were not bailed out. GM was dissolved.
This guy gets more of his income from the government than anywhere else.
From the mid 70s the union leaders and big 3 management struck deals both knew were long term unsustainable.
GM employee are currently the best paid in the bunch. Their goal should be purely to maintain that aspect, not redefine how much an autoworker makes.
He’s right and so would 36%. Why doesn’t Joe B. see that? BUT, should the B word happen, due to caving by the manufacturers, after how all 3 treated COVID as a moneymaker at the expense of customers, the questionable “parts shortage” and pricing in general (premature EV cost pass-throughs being a part of this), I sure hope none get a bailout because they sure don’t deserve one. It’s their own stupidity and boy have they been stupid (and greedy).
When GM’s CEO takes SUCH a huge salary with such little revenue compared to other brands….I think you can afford to kick back to the actual workers, it won’t bankrupt them lol
profit sharing is 1000$ per employee for every billion gm makes. for 2022 that came out to 13000$ BONUS to every employee under uaw.
now what you have to say? did you get a 13k bonus last year?
I say good for the UAW. Should be $1500.00 per billion. Hopefully this contract will see more in profit sharing.
Sure make it 2000 even or 5000. Drop the other demands. There is your incentive to put plastic panels together with care! And your incentive to design parts that don’t fail. The make good cars, people buy everybody makes money.
Now they want the money to flow regardless of what happens while still getting bonuses on top when times are good.
Still angry that Musk started serval multibillion dollar businesses and you’re stuck changing the urinal mints at Wendy’s?
Please stop.
I think you have me confused with someone in your family.
Prophetic words from a multi-zillionaire who pays his auto workers 1/3 less than other companies so he can play George Jetson.
Elon knows.
He is right about one thing…….the competition for EV sales is going to pivot on cost and quality. Detroit giving in to the UAW is going to make Detroit by far the highest cost producers. This is not the place you want to be when the inevitable price war breaks out.
Pompous ass.
I am amazed at the finger-pointing as to who is to blame for the worker not being happy. You the worker are to blame for your unhappiness. You control your and your family’s life, not the corporations, the unions, and certainly not the government. There are millions of jobs and opportunities in the US. If you aren’t happy, find a new job or a new career. And don’t tell me it’s hard, I can’t move, I might have to go back to school etc. etc. I have heard every excuse in the book. Yes, it is change and no one likes change, but if you are not happy, only you can make it happen. I am sure the corporations and union will come to some type of agreement but I guarantee you the majority of the workers will not be happy with the outcome. So, if you want corporations, unions and our government to control your life, go for it, but then stop your complaining.
The only ones complaining are Russian trolls like you.
ACZ aka Senator Shiff the Russia crap is 8 years too old. Even most of the liberal press has given up on it. Time to put up or shut up.
Translation- He’s worried Tesla will be Unionized next.
I dare any journalists to go down to picket line and ask these ppl how much they make an hr. none will tell you but they make real good money , my brother worked for ford on the line and he made damn good money and that was 15 yrs ago, unions suck they were good 70 yrs ago but nothing but a money hungry con game where the workers lose out
Well he don’t want them to get to big of a pay bump.. cause then his workers will be asking for it then might want to unionize. The better question is what would he do if the big 3 did fall. Would he keep any of the brands alive or factory’s