With his employees showing a growing interest in unionization, Tesla CEO Elon Musk shot off a lengthy email to staff urging them to forgo joining the United Auto Workers. While the UAW has romanced Tesla’s growing workforce for years, a recent — and highly publicized — blog post written by an employee expressed renewed concern over the company’s treatment of its workforce, as well as his hope to see them join the labor federation.
Musk initially reached out to the press to defend his company and is now appealing to workers directly, refuting allegations about subpar wages and condemning an earlier investigation into worker safety. “After looking into this claim, not only was it untrue for this individual’s team, it was untrue for any of the hundreds of teams in the factory,” he wrote. (Read More…)
After posting a profitable fall quarter, Tesla returned to spending more than it made. However, its fourth quarter losses, announced on Wednesday, were substantially less than originally assumed by analysts. The electric carmaker’s stock price continued to climb during the final three months of 2016, despite losing $448 million from its operations.
Tesla has been throwing a lot of money at projects and acquisitions. It recently purchased SolarCity and Grohmann Engineering, so going into the red was to be expected. However, the dark cloud looming in the distance isn’t related to capital — it’s about production. (Read More…)
Tesla Motors CEO Elon Musk knows a unionized workforce would add another variable to his lofty, carefully crafted production plans, and an unpredictable one at that: labor strife.
Until now, the electric automaker’s top boss has fended off the possibility in a progressive-sounding way, but a simmering unionization movement, which reared its head this week, shows no signs of abating. Since the appearance of a scathing blog post written by a Tesla assembly plant worker, Musk has found himself on the defensive. A paid union agitator, Musk claimed, wrote the post to rile employees. Then the UAW jumped into the fray.
Now, it’s one big battle. Musk likely wishes a recently introduced bill to amend the National Labor Relations Act was on his side. (Read More…)
Some employees at Tesla Inc.’s Fremont, California factory have been moving ahead with efforts to unionize. Fronting that campaign is Jose Moran, who claims to have worked at the plant for the last four years. He and other disgruntled Tesla employees have reached out to the United Automobile Workers, claiming they work long hours for low pay under unsafe conditions as the company pursues aggressive production deadlines.
While Tesla’s CEO has responded with his own claim that Moran was paid by the UAW to join his company and proselytize for a union, the organization promptly refuted that suggestion by accusing Tesla of spreading dreaded “fake news.” (Read More…)
Although it would been cheaper to build elsewhere, the Chinese-resurrected Borgward has opted to return to its hometown of Bremen for its new factory. Not only is the Germany company back after a half-century absence, China is also giving it a proper homecoming.
That, time is running out for Ford as union strike date nears, Toyota invests in a future of needing fewer cars, and Alfa’s Giulia is changing shape… after the break!
Canada, as the New York Times helpfully points out, actually celebrates Thanksgiving (!), but bargaining teams from Fiat Chrysler Automobiles and autoworkers union Unifor won’t get to enjoy it.
The two groups are expected to bargain down to the last minute as contract talks approach Monday night’s strike deadline, the Windsor Star reports. Unlike recent bargaining between Unifor and General Motors, the FCA negotiations have been whisper quiet, but that doesn’t mean there isn’t action happening behind the scenes. (Read More…)
After securing hundreds of millions of dollars in investments from General Motors and a new lease on life for the Oshawa assembly plant, Canadian Detroit Three autoworkers union Unifor is sharpening its bargaining pens to tackle Fiat Chrysler.
Today, the union identified the automaker as the company next in line to hammer out a contract deal with. After the GM deal, FCA will need to promise something big, and that could mean a commitment to an aging plant filed with aging models. (Read More…)
Volkswagen brand chief Herbert Diess has a target on his back, now that the union representing the automaker’s workers has made its distrust of the company public.
Labor union IG Metall slammed the company’s management in a letter published on its website, stating the company was using the diesel emissions scandal as a way of cutting staff, according to Bloomberg.
The union said it wants assurances from Volkswagen brass that layoffs aren’t coming down the pipe, and implied that Diess’ job is in danger if he doesn’t agree to protect employee positions.
In an announcement that’s been anticipated for months, Ford Motor Company said today it will build a small car plant in Mexico’s San Luis Potosi state.
Ford will spend $1.6 billion on the facility, which starts construction this summer and will employ 2,800 workers by 2020.
The automaker isn’t saying what vehicles it will produce at the plant, but it’s widely expected that the Focus will move to Mexico after production stops at its Wayne, Michigan facility in 2018. Offshoots of the platform, including a rumored hybrid, could also be produced.
The union representing workers at the Fiat 500L factory in Kragujevac, Serbia has a big job ahead of it. Workers are demanding raises, bonuses, and a steady work schedule. In its most recent newsletter, the union listed those demands once again, but instead of news of a pay negotiation the union told workers they’ve negotiated a chicken discount at a local butcher.
Samostalni Sindikat FAS has represented workers at the 500L factory since their collective bargaining agreement was signed in 2010. At the time, the union was able to negotiate fair wages and additional benefits for workers, including a 31,000 RSD ($294 USD) monthly average salary. Workers were happy as many were unemployed after Yugo production was shut down in 2008, and the wage was considered fair at the time.
A wildcat strike at GM’s CAMI plant briefly shut down the assembly plant where the GMC Terrain and Chevrolet Equinox are produced.
João Paulo de Oliveira found it hard to find another job after he was fired by Rapistan, a Michigan-based conveyor belt maker, in 1980. He was detained or arrested another five times until the Brazilian military dictatorship, that had successfully realized a coup d’état in 1964, and returned power to civilians in 1985. Oliveira claims that no other company would hire him after he lost his job, and hge was constantly threatened by police. His crime? Being a union member at a time the military considered strikes as subversive communist movements.
Oliveira declares that he and many other union members suspected that private companies, including many auto makers collaborated with the state’s repressive forces. Apparently, his suspicions have been borne out.
Despite losing a vote on organizing workers at Volkswagen’s Chattanooga, Tennessee plant, the UAW could end up representing Volkswagen workers through its newly formed Local 42, with the end goal being the establishment of a works council at Chattanooga.
While the United Auto Workers take their battle to bring their brand of organization to Volkswagen’s plant in Chattanooga, Tenn. before the National Labor Relations Board, VW’s labor leaders are regrouping in their fight to establish a works council in the U.S. plant.
We talk a lot about brands here at TTAC. For example, Porsche comes in for a bit of criticism for moving away from their image as a maker of purist sports cars. We’ve discussed how brands can be burnished and also be diminished. Do today’s Cadillacs live up to “the standard of the world” and is the Lincoln Motor Company a dead brand walking? Back when GM was busy melting down financially and the future of brands like Pontiac were uncertain, I even checked with a businessman who specialized in bringing back old brands, to see how he would go about reviving GM’s distressed brands. Even a badly damaged brand can be revived. Which brings me to today’s topic, is the UAW’s brand damaged and if so, how can it be fixed? (Read More…)