UAW Counting Strike Votes As Contract Negotiations Continue

Matt Posky
by Matt Posky

The United Automobile Workers are tallying strike votes as union leadership decides which contract terms are worth fighting over. While this is par for the course in any contract negotiation with General Motors, Ford, or Fiat Chrysler Automobiles, this year’s talks have been mired in scandal and economic uncertainty.

Despite the continued strength of the U.S. economy, the automotive industry has been busily preparing itself for a global recession — encouraging quite a bit of restructuring over the past year. Meanwhile, the UAW finds itself the subject of a federal corruption probe that has severely undermined its credibility. We know that at least one automaker, Fiat Chrysler, was actively bribing union officials. Following the recent conviction of the former head of the union’s FCA Department, Norwood Jewell, General Motors has also been implicated.

“This conduct strikes at the core of who we are and what we stand for. Almost 50 years ago, UAW delegates adopted our Ethical Practices Code,” a union statement said in response to the growing scandal. “This Code must always be at the center of any decision by our officers, and states that actions taken by Union officials must be guided solely and unfailingly by serving our members and this Union. Anything less is unacceptable and will not be tolerated.”

The UAW has a lot working against it. Corruption charges have sown seeds of distrust within the union. There’s also a growing disparity between longterm union members and new ones in terms of pay. According to Wards Auto, older workers making $31 per hour have pulled down hefty profit-sharing checks but newer workers are making closer to $13 per hour and receive little in the way of profit sharing or benefits.

As nice as a wage bump would be, manufacturers are growing increasingly concerned about their bottom line. R&D costs are rising, labor hasn’t gotten any cheaper, and most firms have been hemorrhaging cash as they attempt to buy their way into electric vehicles, autonomous driving, and data-based services. The trade war has also made materials and supply chains more expensive over a period where sales growth is heading in the wrong direction worldwide.

However, union members are looking at the tasty gains the industry witnessed over the last few years. While the general climate may not look appealing, most automakers are still enjoying healthy profits. Workers don’t see any reason why companies can’t share.

Unfortunately, there’s a lot standing in the way of that actually happening. Assuming America’s automakers agree to a wage increase, they’ll likely incorporate that sum into how much labor they plan on accepting from the UAW in the future. In order to get the best deal possible, negotiations may have to focus on plant investments — which would help secure regional jobs — or profit sharing. Of course, absent wage increases are usually the kind of thing union members like to strike over.

Currently, GM and Ford hook up UAW employees with $1,000 for every $1 billion made in North America. Meanwhile, Fiat Chrysler pays $800 for every 1 percent added to its profit margin. So long as companies continue making money, it usually translates into more money for workers overall. This unfortunately does not guarantee a payday like a wage hike would.

Local unions have been asked to have their tallies in by August 29th to provide adequate time before labor agreements expire in September. For what it’s worth, experts are not optimistic about the possibility of avoiding strikes.

[Image: General Motors]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Akear Akear on Aug 26, 2019

    Australian designers were supposed to improve things at GM.

  • Cprescott Cprescott on Aug 26, 2019

    If I were the UAW I'd demand that GM hire product designers with skills above a five year old and eyes that are functional. The evidence of pathetic styling at GM is manifold and the truck in the picture makes you want to pour acid into your eyes to prevent ever seeing the hideous visage that these things have acquired.

  • 3-On-The-Tree 4cyl as well.
  • Luke42 I want more information about Ford’s Project T3.The Silverado EV needs some competition beyond just the Rivian truck. The Cybertruck has missed the mark.The Cybertruck is special in that it’s the first time Tesla has introduced an uncompetitive EV. I hope the company learns from their mistakes. While Tesla is learning what they did wrong, I’ll be shopping to replace my GMC Sierra Hybrid with a Chevy, a Ford, or a Rivian — all while happily driving my Model Y.
  • 3-On-The-Tree I wished they wouldn’t go to the twin turbo V6. That’s why I bought a 2021 Tundra V8.
  • Oberkanone My grid hurts!Good luck with installing charger locations at leased locations with aging infrastructure. Perhaps USPS would have better start modernizing it's Post offices to meet future needs. Of course, USPS has no money for anything.
  • Dukeisduke If it's going to be a turbo 4-cylinder like the new Tacoma, I'll pass.BTW, I see lots of Tacomas on the road (mine is a 2013), but I haven't seen any 4th-gen trucks yet.
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