UAW president Shawn Fain gave a public address on the union’s Facebook page last week entitled “Our Economy, Our Country, Our Union.” One of the main topics Fain addressed was the current state of the auto industry and the UAW’s efforts in “ending the free trade disaster.”
“Free trade has been a disaster for the working class,” Fain said. “The government gives a green light to companies to build their product wherever they can find the most exploited workers. Countries where desperate people will work for $3 an hour, where there are no labor laws, and where there are no environmental regulations.”
“Then, the companies kill jobs in the US and run a race to the bottom across the globe. They force workers across borders to compete with one another,” Fain continued. “And the companies ship product back in at massive profit, which they pocket for the executives, the shareholders, and pay off the politicians for good measure.”
So, how can tariffs help the UAW with the free trade problem? “In our view, tariffs are a first step. They are a tool in the toolbox. They have to be well-designed. They need to be paired up with other policies and changes. But they are a start to stop the bleeding,” Fain said.
As for the costs to the automakers, Fain believes corporate profits are more than enough for the car companies to absorb without significantly raising prices on the cars. “The automakers, the auto market, and corporate America can afford [tariff costs],” Fain said. “[Tariffs] raise the cost on companies that have killed good jobs in a race to the bottom for cheap labor elsewhere while Wall Street makes a killing.”
Fain repeated the claim that U.S. auto manufacturing is currently running under capacity. “We have industries where right now, there are active plants operating under capacity in the US while workers outside the US are exploited for $3 an hour. We have excess auto production capacity in the US. We could bring back tens of thousands of jobs in a matter of months. That’s before we even talk about building new plants. We are talking about adding shifts. Adding lines. Adding jobs. Making products that we know are profitable.”
Fain directed viewers of his presentation to the chart above that “shows the price of a new car next to the automakers’ price gouging” starting in 2010. “See how the profit goes up right alongside the price? That’s because they’re price gouging. They’ve been price gouging for years. That tells us that we shouldn’t trust the companies when they say they can’t afford it. It also means there is flexibility in the price. They don’t need to pass on the costs of auto tariffs because they’re already making plenty of money.”
Comments
Oh Shawn, please find a brain. Automakers won’t do that because the stock prices and profits would tank and all those brain-dead and overpaid CEOs would lose their jobs.
Profits tanking woukd mean job losses. Profits are kind of required to stay in business. But numbers are hard for Neanderthals, so I don’t expect you to understand.
You’re the Neanderthal. Profits are necessary but not the insane ones made through arrogance and gouging since the start of the pandemic. And lying about the extent of supply shortages. And that’s the only reason why Mary and Jimbo still have automotive jobs, when they should have been toast by now.
The pandemic is over. Maybe you should get over it too.
Sean is wrong. Carmakers can’t soak 25% increased costs.. Operating margins are nowhere near 25%. I know you are math challenged, but even you should understand that increasing costs by more than current profit margins means selling at a loss if prices remain the sane.
Beachy – I knew eventually I’d find something of substance I agree with you on. Mary isn’t worth her pay – I’d argue nobody is worth that, at least as an employee. Furthermore, the increase in base model prices on certain models, and nearly an across the board increase in destination charges sounds like built in padding for any tariff expense.
You get the facts before you go around spreading MANURE. Ms. Barra EARNED a lot from BONUSES> And has written three books on management. Have you read even one . To CAVE PERSON YOU ( politically correct). I*m no AIR HEAD. I know you
rookies ARE NOT HERE TO PLAY WITH BUTT HOW ELSE ARE YOU GOING TO LEARN.
Sheldon Cooper Big Bang Theory
The UAW has been a disaster for the working class, since it is their fault carmakers are offshoring production to avoid dealing with them.
if usa automakers is to continue doing the Trashies on wheels, no soul, no details, all black grey, shadow of G A R B A G E america never great as the 1960ies chromes, no hapiness, no excitement when passing, then yep, d u m b north american can absorb with they rich moneythe tariffs well, the grey silver boxes are what they want instead of elegance and sophistication gamour, so recycling plastic cheap vehicles instead trophies of stream lines on wheels
All these tariffs needed to happen in the 1970’s, to prevent US manufacturing from leaving the US in the first place and keep foreign manufacturing out, barring building factories in the US and employing US workers.
Tariffs now, while well intended, is going to have a hard time undoing the last 50 years.
The longer we waited the more painful it would have been. Yes you are 100% right. It should have been done then. But even more painful would be an adversary completely choking off our essential supplies like medicine whenever they deem fit. Thank god, we weren’t dumb enough to send them our food supply as well. Its a price we need to pay to secure the future of our kids.
“Free trade has been a disaster for the working class,” Fain said.
This is globalism. Go ahead and Google the top 3 shareholders of almost every Fortune 500 company. The people that control those 3 organizations are the ones that benefit exponentially.
Yeah and why do you think moving away from globalization is being demonized all over the media? God forbid Ray Dalio were to lose those Chinese investments he is neck deep in and keeps praising them as the future leaders of the world. Or Warren Buffett and his BYD darling child he built up. A dystopian future world in my eyes.
Dalio and Buffett aren’t even major players at the top. But the same 3 I was talking about own most the media, too.
Free trade has been a disaster for the California avocado business too. The flooding of 5 times our production from Mexico without one fee.
What the HE__ does avacados got to do with the auto industry???????
2025 Lincoln Corsair base price $39,485 – made in Louisville Kentucky in a UAW plant.
2025 Buick Envision base price $37,895 – Made in China, just barely less expensive for an equivalent vehicle to the Corsair.
Another example I mentioned before:
2025 Acura MDX base price $52,550 – made in East Liberty Ohio
2025 Lincoln Nautilus base price $54,130 – Made in China and lacks a third row seat
You may like the UAW or not, Fain is not wrong here. For all the clueless ones with their heads in the sand that think Made in China equates to savings passed on to the consumer.
I have the smallest violin in the world playing for the automakers. Tesla and Rivian saw the writing on the wall from the start and source the majority of their components stateside (for US market cars). They can try to raise prices people will simply not buy anymore and watch their sales tank. If they aren’t careful, they will land up with permanent damage from creative destruction as the younger generation becomes used to living without a new car as we are seeing them do with the housing market.
At some point, if you haven’t realized after the pandemic the importance of safeguarding your supply chains from an adversary with its crosshairs on us then you have to let Darwin do his job and weed out the unfit. We either pay the price now and safeguard our supply chains and manufacturing or pay an even bigger price at the mercy of an authoritarian aggressor. Maybe Barra and Farley can buy a smaller yacht instead or a mansion with one less bathroom.
If they cannot find ways to make $ 60-100k pickups, EVs, and CUVs in the US instead of China and Mexico these CEOs deserve to lose their jobs.
Heaven help us if they made the mistake of voting you in as C.E.O. You the unknowing led by the unwilling can not do any thing with nothing.
Have you seen the Genesis Gran Equator ? loved it is really a top beautiful car for a SAV
Yeah its nice. I can’t say the same for the new Palisade though. Though Hyundai consistently makes their nice interiors, the exteriors have been a bit polarizing as of late especially with the Santa Fe. I do like the look on the Tucson though.
Both political parties should have never pushed #NAFTA to begin with, that not only had nothing to do with free trade, it was a disaster to start with period.
your president made now 245 % against china, hahaha, why not 547 % ? but hope chinese people implement a lot COMAC and to they not need to buy boeings again… neither airbus or embraer … in fact C919 is a great aircraft replacing the problematic 737 recently and then just increase the parts zooming to a 245 pax thing
We need to get rid of Unions across the Globe!
Yes that is right on man. Lets get back to slave labour. You can be first in line for that job.
No over time no benefits , 6 days a week for almost no pay. Give you head a shake.
Sure says the rich multi millionaire himself….I doubt Mexico and Canada fit the same category as China or other asian country labor laws. Paid less but not the same.
When tariffs where implemented on imported washing machines during Trump 1.0, domestic manufacturers raised their prices to match. When import restrictions were placed on cars in the 1980s, the average price of an American-made car rose due to overall reduction in supply. Why? Because companies exist to optimize profits, not to absorb large cost increases.
Union leaders
I’ve said this a million times,
The reason we send jobs overseas is largely cause other countries are twisting the arms of our corporations, not cause it’s cheaper
The Buick regal before it was canceled was a 100% €h1n@ made vehicle, GM still lost money on it after importing it. Why? Cause factories over there are nothing like here. 3$/hour is what these factories advertise as their employees costs, but they don’t factor in that the factories also furnish food, housing, 100% of healthcare. The real cost of making cars that can wistand American roads is pricier in almost every other country. It’s not so much cheap to build complex things over there as it is their strong arming our industry. Now it is cheaper to build plants as they don’t take 20 years to permit, and energy heavy industries like mining and steel benefit from endless coal electricity, but besides that, autos are cheaper made in the USA. The Mac Pro is made in Kentucky, and new balance and redwing still make their shoes stateside. What we need is our G0ver#ent to have some balls and stand up to globalist bullying.
Samuel, if there is anything dumber than dirt, maybe barbers hair, it would be you. You clearly don’t understand the need and purpose of UNIONS!
Not a big Shawn Fein fan but I’m with him on this one. Stop using all that cash to buy back stocks only to benefit institutional investors and company executives.
I’m a GM and Ford stockholder, buybacks benefit me. Automakers do not exist to provide jobs for low skill workers, they exist to make as much money as possible. Do you believe in a socialized US auto industry? Shawn Fain apparently does.
I am tired of winning stock market is down 4500 from its high!
Shawn have your members take a wage cut to help the manufacturers pay the tariff.
“UAW Says Automakers Can Afford Absorbing Import Tariffs”
Wonder what they’ll say when the automakers tell them “No profit sharing this year”.