Strike Two: UAW Again Fails to Unionize Volkswagen Plant

The results of a Friday vote are in, and Volkswagen can breathe a sigh of relief. Five years after the United Auto Workers first attempted to place the automaker’s Chattanooga, Tennessee assembly plant under its umbrella, a second vote has yielded the same results.

Weeks and months of acrimony, ads, accusations, and other seemingly unavoidable aspects of union organizing led to a narrow win for the no-union side. As before, Southern auto plants remain just beyond the grasp of the UAW.

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U.S. Volkswagen Workers Take Another Stab at Unionization

If at first you don’t succeed…

Following a narrow loss in February 2014, the United Auto Workers hopes that a vote set for mid-June in Chattanooga will be the big break it’s been looking for. Besides wishing to represent the thousands of workers at Volkswagen’s sole U.S. assembly plant, the UAW desperately wants to make inroads among foreign automakers operating in the South that have so far resisted its overtures.

Despite agreeing to play nice in the lead-up to the vote, both sides accuse the other of dirty tactics.

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Tennessee Governor to Volkswagen Employees: Please, Do Not Unionize

Volkswagen’s singular U.S. plant has toyed with the idea of unionizing for the past five years. Chattanooga Operations, in Tennessee, initially seemed fine with the establishment of a German-style works council. However, while the United Auto Workers’ first attempt to seal the deal with votes failed in 2014, the union has since managed to rally more staff under its banner.

The UAW is now calling for another vote (its fifth), claiming a majority of the facility’s hourly workers are on its side. Meanwhile, Tennessee Gov. Bill Lee spent the first part of this week pleading with plant staff not to unionize.

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General Motors Asks Judge to Dismiss UAW Case

General Motors’ legal team has requested that the lawsuit filed by the United Automobile Workers, which claims that its decision to idle factories is in violation of an existing union agreement, be dismissed by a federal judge. The UAW alleges that GM sidestepped the collective bargaining agreement established in 2015 by closing plants prematurely. But the automaker has been careful to say that the facilities are being “unallocated,” claiming the union failed to adhere to the grievance arbitration procedure outlined in its contract — which forbids UAW from going to court until all other avenues have been exhausted.

The request came with a bundle of other motions, filed on March 21st, and included a request to transfer the case from Youngstown, Ohio (where the contentious Lordstown Assembly is located) to the eastern district of Michigan.

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Union Official: UAW Bent Over Backwards for GM to Keep Lordstown Open, and for What?

The last Chevrolet Cruze rolled out of Lordstown Assembly earlier this month, with the 53-year-old plant going dark two days later. Some laid-off workers are staying put, waiting to see if September contract talks hold any promise of a future in Lordstown.

While General Motors admits the United Auto Workers was willing to do its part to save the Lordstown Assembly Plant, details of that pact remained unknown. Now, a union official has shed light on some of the concessions the UAW agreed to.

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Feds Probe UAW 'Flower Funds' in Broadening Corruption Case

Federal investigators are expanding their ongoing corruption investigation into the United Auto Workers and Detroit Three by taking a long look at donated money intended to buy flowers for member funerals. The concern is that the UAW’s “flower fund” may have been used as a slush fund to finance personal expenses for union officials.

It wouldn’t be the first time. Prosecutors have already secured the convictions of seven people via a probe into the UAW-Chrysler National Training Center. Several jailed union officials, along with former FCA-VP Alphons Iacobelli, helped investigators uncover illicit funds funneled through training centers and charities — including the Leave the Light On Foundation, created by the late General Holiefield. Now they’re helping the feds branch out.

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Opioid Addiction to Be Part of UAW Contract Negotiations

Opioid addiction is on the rise in America and the United Auto Workers wants to confront the problem in its next round of collective bargaining. While the issue is most visible in parts of the Western United States, large pockets of the Midwest, South, and Northeast have cited an influx of drug overdoses since 2002.

The UAW, knowing that prescription medications are being increasingly abused by factory workers (as heroin simultaneously makes a comeback), wants to nip the issue in the bud. In addition to promoting job security, higher wages, and healthcare, union officials have identified combating opioids as an important element of future contract negotiations.

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UAW/FCA Corruption Scandal Grows

Norwood Jewell, the former head of the United Auto Workers’ unit attached to Fiat Chrysler Automobiles NV, has been charged by federal prosecutors in Detroit with violating the Labor Management Relations Act. This makes him the highest ranking UAW member to be charged in the union corruption case that appeared to be on pause while investigators reexamined suspects, following a string of convictions in 2018.

Federal investigators are relatively certain that FCA engaged in the widespread bribery of union officials who were able to tap into funds allocated for their National Training Center — a scheme dating back to 2009. According to defamed former FCA vice president Alphons Iacobelli, the goal was to keep union officials “ fat, dumb and happy.” Millions of dollars were believed to have been used to buy the UAW’s cooperation, and Jewell appears to have gotten a slice.

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President Trump Shares His Thoughts on GM … Again

President Donald Trump weighed in on General Motors again this week. This time, the issue at hand was the fate of Lordstown Assembly — which was shuttered earlier this month as part of the automaker’s ongoing restructuring program.

“Just spoke to Mary Barra, CEO of General Motors about the Lordstown Ohio plant,” Trump tweeted on Sunday. “I am not happy that it is closed when everything else in our Country is BOOMING. I asked her to sell it or do something quickly. She blamed the UAW Union — I don’t care, I just want it open!”

Barra’s take on just how much the United Automobile Workers are to blame is questionable, but the president’s position is not.

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UAW Increases Strike Pay Ahead of Summer Negotiations

United Auto Workers President Gary Jones announced Monday that worker strike pay has increased from $200 to $250 a week, signaling the possibility of walkouts just a few months before U.S. worker contracts expire. While it would appear the UAW is preparing to strike, President Gary Jones said it’s not the union’s intent. “No one goes to the bargaining table expecting to strike. But the UAW goes to the bargaining table prepared to strike if our members need to strike,” Jones said. “Raising the strike fund is an important symbol that we have their backs.”

However, Jones chose slightly different phrasing when addressing union members at Cobo Hall on Monday. “Activism and solidarity, that is what secures our power,” Jones told hundreds of union members in Detroit. “The stakes are high. We are ready … We are ready to gear up and fight for what is right. We are ready to fight for our brothers and sisters and act as one.”

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U.S. Trade Head to Meet With UAW This Week Over New Trade Deal

U.S. Trade Representative Robert Lighthizer will be in Michigan this week to meet with union leaders from United Auto Workers in a bit to gain their approval for the Trump administration’s new North American free trade deal. Lighthizer is scheduled to meet with union officials in Dearborn on Tuesday to answer questions about the United States-Mexico-Canada Agreement (USMCA) while simultaneously drumming up support.

The USMCA deal suggests increasing existing requirements for North American content for vehicles, stipulating that 40 percent of a vehicle’s overall content be manufactured in areas paying at least $16 an hour, while also encouraging Mexico to tailor its labor rules to allow unions to wield legitimate collective bargaining powers.

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UAW Slaps GM With Lawsuit Over Plant Closures

Canada’s autoworker union Unifor brought out the guy from Dune to protest a General Motors plant closure, but UAW went a few steps further. The American auto union hit GM with a lawsuit Tuesday, claiming the company’s decision to shutter three plants violates its 2015 collective bargaining agreement.

However, GM may have an out.

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Unifor Planning to Protest General Motors at Detroit Auto Show, UAW Boycotts Blazer

Things are starting to get truly ugly between Canada’s Unifor and General Motors. On Friday, the union held a rally in Windsor, Ontario, with that automaker’s headquarters just a river away. During the event, Unifor President Jerry Dias expressed his annoyance with the automaker’s restructuring plan and promised to bring the noise to GM’s front door during the North American International Auto Show this week.

Friday’s gathering, which Unifor and the Windsor and District Labour Council claimed drew around 2,000 people despite its brevity, focused primarily on the company’s decision to shift more of its North American production to Mexico and the shuttering of Oshawa Assembly and the end of this year. Dias said he wants the union to work with the automaker to keep Canadian jobs and avoid a potential boycott. Though that might be just around the corner, as the UAW has already issued a boycott of its own within the United States.

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UAW Sues General Motors Over Temporary Workforce

Last week a lawsuit was filed with the U.S. District Court in Youngstown claiming that General Motors is in violation of a “memorandum of understanding” with the United Automobile Workers by allowing temporary employees to support the launch of some new product from Fort Wayne Assembly Plant. The facility, which is responsible for manufacturing the Chevrolet Silverado and GMC Sierra pickups, is alleged to have brought on temporary workers from May to August of 2018 instead of using its laid-off full-time workers. The UAW claims this is decision represents a breach of contract.

The union says there are nearly 700 workers laid off from the “nearby” Lordstown, Ohio Assembly Plant — many of whom have applied to transfer to the Fort Wayne as is their right under the current contract with GM.

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General Motors Now Mexico's Top Automaker, UAW/Unifor Decidedly Annoyed

As General Motors takes aim at its own foot in the United States, it’s managed to become Mexico’s top automaker by volume. The company saw a nearly 3 percent U.S. decline in the fourth quarter of 2018, during which it announced the shuttering of several U.S. and Canadian facilities as part of a widespread restructuring program aimed at freeing capital for autonomous and electric vehicle development.

Meanwhile, large investments in its Mexican plants over the last few years — coming at the same time as rival Nissan’s scaling back of sedan production — has left GM as the top dog in the region. General Motors and Nissan have spent decades jousting for the top spot south of the border, alternating positions “depending on what has happened in their production levels,” according to Stephanie Brinley, principal analyst at IHS Markit.

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