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    Auto Strike Looms, Threatening to Shut Detroit’s Big 3

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    With their contract expiring Sept. 14, the United Auto Workers and the companies are far apart in talks. A walkout could take a big economic toll.The United Auto Workers union and the three Detroit automakers have less than two weeks to negotiate a new labor contract, and a strike of some sort seems increasingly likely.The union’s president, Shawn Fain, has primed rank-and-file members to be prepared to walk off the job if the union’s long list of demands for improved wages and benefits are not met.A strike against one of the companies, especially a prolonged stoppage, could send an economic jolt through several Midwestern states and crimp the profits of General Motors, Ford Motor or Stellantis. G.M. workers walked out for 40 days in 2019 before reaching an agreement.A strike against all three — a step the union has never taken but one Mr. Fain has said he is willing to call for this year — could have a noticeable impact on the broader U.S. economy.“If that happens, even a short strike would impact economies throughout Michigan and across the nation,” said Patrick Anderson, the chief executive of the Anderson Economic Group in East Lansing, Mich.The talks are playing out as automakers are spending tens of billions of dollars to transition to electric vehicles, which require fewer workers to assemble than traditional gasoline-powered cars and trucks. The terms of the new contract will determine how both autoworkers and the companies fare in an E.V.-centric industry.At the same time, significant wage and benefit gains could provide a tailwind for a union movement that has been gaining strength across several industries.There are political stakes as well. President Biden has declared that “the U.A.W. deserves a contract that sustains the middle class” and has named a White House liaison to the union and the automakers. But the U.A.W. has withheld an endorsement of his re-election bid so far, partly because of concern over the union’s share of E.V.-related jobs created with federal subsidies.An agreement before the contracts expire on Sept. 14 is still possible, and talks could continue beyond that date without a walkout. But Mr. Fain has repeatedly said he views Sept. 14 as a deadline — the day a strike could begin. He was elected to the U.A.W. presidency last year as an insurgent, ousting the incumbent on a vow to take a more combative and confrontational approach in the talks than his recent predecessors.“President Fain has declared war, and that usually means there’s going to be a battle, and that battle would be a strike,” said Sam Fiorani, the vice president of global vehicle forecasting at Auto Forecast Solutions, a market researcher. “The U.A.W. leadership is in a position now where they have to prove to the members that they are fighting for them, so it’s pretty unlikely there won’t be a strike.”The auto industry as a whole, including foreign-owned companies with operations in the United States, makes up about 3 percent of the country’s gross domestic product. A 10-day strike against the three Detroit automakers would result in total wage losses of $859 million and manufacturers’ losses of $989 million, according to estimates by Mr. Anderson’s firm.In August, Mr. Fain sent each company a list of demands, including higher wages, improved benefits, a resumption of regular cost-of-living wage bumps to ward off the impact of inflation and an end to a wage structure that leaves newer hires making a third less than veteran workers. Mr. Fain suggested as much as a 40 percent wage increase, noting that the chief executives of each of the companies had their compensation packages rise substantially in the last four years.He also called for contract provisions that would require the automakers to pay workers to do community service if their plant closes, describing it as a way to deter the companies from shuttering factories and to protect towns and local economies from being ravaged by the loss of a major employer.“The manufacturers can absolutely afford some of those demands, but the more they get, the less competitive the companies are going to be,” Mr. Fiorani said.In a video message streamed on Facebook on Thursday, however, Mr. Fain said the union and the automakers remained far apart. Ford, he said, offered wage increases and other provisions that were “insulting” to the U.A.W.In a statement, Ford said it had offered a 9 percent wage increase and one-time lump-sum payments that, combined, would increase a worker’s income by 15 percent over the four-year contract. Mr. Fain said lump-sum payments helped but did not improve a worker’s income over a long period.The U.A.W. and Ford are also at odds over profit-sharing bonuses, the use of temporary workers, cost-of-living wage increases, retiree health care and several other matters.Mr. Fain said that G.M. and Stellantis had not provided counteroffers to the union’s proposals, and that the U.A.W. had filed a complaint with the National Labor Relations Board contending that the two companies were not negotiating in good faith.An assembly line for the Ford F-150 Lightning electric truck. Automakers are spending billions in the transition to electric vehicles, which require fewer workers to make than gasoline-powered cars and trucks.Brittany Greeson for The New York Times“I know this update is infuriating, and believe me when I say I’m fed up,” he said. “Our goal is not to strike. Our goal is to bargain a fair contract, but if we have to strike to win economic and social justice, we will.”G.M. said it was “surprised by and strongly refutes” the charges in the N.L.R.B. complaint. “We have been hyper-focused on negotiating directly and in good faith with the U.A.W. and are making progress,” Gerald Johnson, G.M.’s vice president of global manufacturing, said in a statement.Stellantis was “disappointed to learn that Mr. Fain is more focused on filing frivolous legal charges than on actual bargaining,” the company said in a statement. “We will vigorously defend this charge when the time comes, but right now, we are more focused on continuing to bargain in good faith for a new agreement.”In recent weeks, workers have organized several dozen rallies and other gatherings to prepare for picketing. “I think the membership is energized,” said Christine Bostic, a battery tester at a G.M. electric vehicle plant in Detroit. “The facts are on our side. If it comes to a strike, I’m ready for that.”To soften the impact of a stoppage, the union has amassed a strike fund of $825 million. It plans to pay striking workers $500 a week and cover their health insurance premiums while they are out of work.In recent days, Mr. Fain has joined the union’s negotiating teams in their talks with each of the automakers, an unusual step. Normally, the U.A.W. president does not take a direct role until the final days or hours of negotiations.On Wednesday, he took part in discussions with Stellantis, where tensions between the two sides have been high. When Stellantis responded to Mr. Fain’s demands with a list of cost concessions it wanted from the union, Mr. Fain took to Facebook to denounce them, dropping the document into a wastebasket.Decades ago, when the U.A.W. had more than a million members and the Big Three — G.M., Ford and Chrysler, now part of Stellantis — had almost no foreign competition, a strike by the union could shut down a significant portion of the United States economy.Today, the union is much smaller. G.M., Ford and Stellantis employ about 150,000 U.A.W. workers, and those companies make only a little more than 40 percent of the cars and trucks sold in the U.S. market.But the union entered this year’s talks in a much stronger negotiating position than it had in years. In the past, the Detroit companies were struggling badly against foreign rivals that operate nonunion plants in the South, like Toyota and Honda, and had a significant cost advantage. In most of the last several contracts, G.M., Ford and Stellantis had to get concessions on wages and benefits to survive.Over the last 10 years, however, all three companies have rung up record profits, thanks in part to the concessions they won from the union as well as the shift in consumer preferences to high-margin trucks and large sport utility vehicles.In the first half of this year, Ford made $3.7 billion and G.M. made $5 billion. Stellantis reported profits of 11 billion euros (about $11.9 billion).In the past, the U.A.W. has chosen one company — it was G.M. four years ago — as the “target” to focus on in the talks. Mr. Fain has said the union could target all three companies this time around, but many analysts think the union will eventually choose Stellantis. In addition to the strains between the company and the union, their talks involve a plant in Belvidere, Ill., that Stellantis has idled and that the union wants the company to reopen.Getting Stellantis to reopen the plant is a critical task for Mr. Fain. Four years ago, G.M. closed a plant in Ohio and the U.A.W. failed in its efforts to push the company to reopen it. In his campaign for the presidency, Mr. Fain promised members that his tougher approach would prove successful this time.The union could get a hand in this battle from the federal government. On Thursday, the Energy Department said it had made $2 billion in grants and $10 billion in loans available to auto companies to convert existing factories that build gasoline-powered cars and trucks into plants that produce hybrid and electric vehicles.Stellantis, like G.M. and Ford, aims to introduce several more electric models over the next few years and will probably have to retool some plants to make them. It is already building a battery plant in Indiana for its E.V. push.Mr. Fiorani suggested that Stellantis could decide to overhaul the Belvidere plant to make electric models. “Stellantis could find a product to go in there,” he said. “For the U.A.W. to truly win something, though, it has to be electric vehicles that Stellantis would plan on making for several years.” More

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    Starting with Hollywood, It’s Been a Summer of Labor Strikes

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    By The New York Times This year, workers across industries in the United States have increasingly walked off the job or threatened to do so. In July, tens of thousands of actors joined screenwriters on the picket line, bringing Hollywood to a halt. Meanwhile, a summertime strike of more than 300,000 United Parcel Service workers […] More

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    UAW Votes to Authorize Strikes if Negotiations Fail

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    The United Auto Workers union is seeking big raises and other gains in contract talks with General Motors, Ford and Stellantis.The United Auto Workers union said on Friday that 97 percent of its members had voted to authorize strikes against General Motors, Ford Motor and Stellantis if the union and companies were unable to negotiate new labor contracts.The result gives the union’s president, Shawn Fain, the power to tell workers to walk off the job once the current contracts expire on Sept. 14.Strike authorization votes are normally formalities that pass by significant margins and do not ensure strikes. But this vote comes as the newly energized U.A.W. takes a more assertive stance with automakers, part of a larger shift in organized labor.G.M., Ford and Stellantis have posted strong profits for about a decade. That has emboldened Mr. Fain and his members to call for substantial wage increases, cost-of-living adjustments, and improved pensions and health care benefits.“This is our time to take back what we are owed,” he said on Facebook Live on Friday. “We are united, and we are not afraid,” he added.Mr. Fain, who was narrowly elected president this year in the union’s first direct election of its top leaders, appears to have united the union’s members. He appeared at rallies with workers in Detroit on Wednesday and in Louisville, Ky., on Thursday and Friday. About a dozen similar events are planned over the next two weeks. Such events were rare in contract talks over the last 20 years.“There’s nervousness, but there’s excitement,” Luigi Gjokaj, a vice president at U.A.W. Local 51, said at the Detroit rally. “If the company comes to the table and they’re fair, we’ll have an agreement. If it has to go to a strike, we are prepared.”Mr. Fain spoke to about 100 workers at that rally from the bed of a pickup truck just outside a Stellantis plant that makes the Jeep Wagoneer, a highly profitable sport utility vehicle.“We’re not asking to be millionaires,” he said to loud cheers. “We just want our fair share.”In a statement after the result of the strike vote was announced, Ford said it hoped to work with the U.A.W. toward “creative solutions during this time when our dramatically changing industry needs a skilled and competitive work force more than ever.”This month, Mr. Fain sent the companies a list of demands, including the possibility of working only four days a week and wage increases of 40 percent, noting that the chief executives of G.M., Ford and Stellantis have been awarded bigger compensation packages over the last four years. New hires at auto plants start at about $16 an hour and over several years can work their way up to the $32 an hour earned by veteran workers.G.M., Ford and Stellantis have suggested they will probably agree to some form of higher wages. In a fresh indication of how the talks may go, an Ohio battery plant owned jointly by G.M. and LG Energy Solution, a South Korean battery maker, agreed on Thursday to increase the wages of 1,900 U.A.W. workers by 25 percent on average.Mr. Fain had repeatedly criticized wages at the plant, which had started at about $16 an hour, as being too low. The plant is covered by a separate bargaining agreement from the one the union is negotiating for workers in G.M.’s wholly owned plants. Wages there will now start at about $20 an hour.The three manufacturers aim to minimize increases in labor costs in any new contract because they are spending tens of billions of dollars on a momentous transition to electric vehicles. The companies have suggested that agreeing to all or most of Mr. Fain’s demands would leave them at a competitive disadvantage against Tesla, the dominant maker of electric cars, and European and Asian automakers that operate nonunion plants in the United States.President Biden told reporters on Friday that he was “concerned” about a potential strike by autoworkers. “I’m talking with the U.A.W.,” he said.Mr. Biden said the transition to electric vehicles should not shortchange workers. “I think that there should be a circumstance where jobs that are being displaced are replaced with new jobs,” he said, adding that the pay for those new jobs “should be commensurate.”Former President Donald J. Trump, who is the leading candidate for the Republican nomination, has seized on autoworkers’ unease about the switch to electric vehicles to court the U.A.W., which typically backs Democrats but has declined to endorse Mr. Biden so far.Despite the costs of investing in electrification, the three automakers are enjoying healthy profits.G.M. said in July that it expected to earn more than $9.3 billion this year, about $1 billion more than a previous forecast. Stellantis, which is based in Amsterdam and owns Chrysler, Jeep, Ram and other auto brands, made 11 billion euros (about $11.9 billion) in the first half of this year, a record. Ford expects earnings before taxes of $11 billion to $12 billion this year. All three companies make most of their profits in North America.“Regardless of what other opinions might be, business profits enable future investments, which support long-term job security and opportunities for all,” said Gerald Johnson, G.M.’s executive vice president for global manufacturing and sustainability, in a video message to employees last week.The U.A.W. typically names one company that it will focus on in negotiations and make the target of a strike if it cannot reach an agreement. The union has not done so thus far, although Mr. Fain has publicly sparred the most with Stellantis.After Mr. Fain presented his demands, Stellantis responded with proposals that would increase how much workers contributed to the cost of health care, reduce the company’s contributions to retirement accounts and allow the company to close plants temporarily with little advance notice.In a Facebook video, Mr. Fain angrily denounced the Stellantis proposals and tossed a copy in a wastebasket. “That’s where it belongs, the trash, because that’s what it is,” he said.Stellantis’s chief operating officer for North America, Mark Stewart, said in a letter to employees that he was “incredibly disappointed” by Mr. Fain’s remarks. “The theatrics and personal insults will not help us reach an agreement,” Mr. Stewart said.Tensions between the U.A.W. and Stellantis, which was formed in the 2021 merger of Fiat Chrysler and Peugeot S.A., have been simmering since the automaker idled a Jeep plant in Illinois. One of Mr. Fain’s key objectives is getting the company to reopen the factory. More

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    New Union Leaders Take a Harder Line

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    Pushed by angry members, unions representing actors, autoworkers and UPS employees are becoming increasingly assertive under new leadership.Shawn Fain is not a typical president of the United Automobile Workers union.Mr. Fain recently declined a symbolic handshake with the chief executives of the major Detroit automakers, a gesture that traditionally kicks off contract negotiations. He is seeking an ambitious 40 percent wage increase for rank-and-file members — in line, he says, with the pay gains of those corporate leaders over the past four years. And in a video meeting with members last week, Mr. Fain threw a list of proposals from Stellantis, the maker of Chrysler and Jeep, into a wastebasket, saying it belonged in the trash “because that’s what it is.”On one level, the circumstances that produced the union’s more aggressive leadership are idiosyncratic. Mr. Fain, who won his position in March, is the first president in the union’s history, dating back nearly 90 years, to be elected directly by its members. The change took place after a major corruption scandal engulfed two of his predecessors and several more union officials.But on another level, the forces that swept Mr. Fain into power are the same ones that have borne down on unions across a variety of industries: a feeling among members that they have spent years enduring out-of-touch leaders, meager wage growth and concession-filled labor agreements, which forced some to do similar jobs as co-workers for less pay.“We kept being told, ‘This is a good contract,’” said Shana Shaw, a U.A.W. member who has worked at a General Motors plant in Missouri since 2008. “And our members are saying, ‘It’s not a good contract!’”The long-simmering rage helps explain why, in addition to Mr. Fain, several prominent unions are now in the hands of outspoken leaders who have taken their membership to the brink of high-stakes labor stoppages — or beyond.Sean O’Brien, president of the International Brotherhood of Teamsters, has repeatedly referred to corporate leaders as a “white-collar crime syndicate” and warned that a strike of the union’s 300,000-plus United Parcel Service members appeared inevitable. (The union recently reached a tentative agreement that members are voting on.)Just after a union of more than 150,000 Hollywood actors called a strike in July, Fran Drescher, president of SAG-AFTRA, said that she was “shocked by the way the people that we have been in business with are treating us.” She added: “It is disgusting. Shame on them!”The companies, including UPS and the automakers, have indicated that they are willing to increase compensation but cannot jeopardize their long-term viability. The large Hollywood studios have offered actors pay increases but say they must be able to adapt to the decline of traditional television.Some executives have called out the unions’ more confrontational gestures. “The theatrics and personal insults will not help us reach an agreement,” Mark Stewart, a top Stellantis official, said in a letter to employees after Mr. Fain literally discarded the company’s proposals.And channeling members’ anger is not without risk: It can raise expectations and make it difficult for leaders to finalize contracts. Mr. O’Brien is facing a “vote no” campaign organized largely by UPS part-timers who argue that the union did not secure large enough raises.The populist approach is not unique to labor unions. The 2008 financial crisis and the grindingly slow recovery produced a more militant style of politics that upended established institutions around the world. The crisis helped lay the groundwork for the unexpected support of Bernie Sanders and Donald Trump in the 2016 presidential race.If anything, unions were slower to adapt to the rising anger than other institutions, largely because they were less democratic.In 2018, UPS employees voted down a labor contract negotiated by the Teamsters leadership, which created a new category of lower-paid drivers. The union’s president, James P. Hoffa, who had served in the position for nearly 20 years, used a procedural rule to impose the contract anyway.But even the change-averse labor movement could not withstand a final blow: Covid-19, and union members’ anger over their perilous working conditions as corporate profits grew at one of the fastest rates in decades.“There’s a historical memory of all the concessions they made,” said Ruth Milkman, a sociologist of labor at the Graduate Center of the City University of New York, referring to union members. “And they feel shafted. The C.E.O.s are sitting pretty with all this pandemic money that didn’t go into their pockets.”Many nonunion workers saw their wages rise rapidly thanks to a tight job market, but contracts negotiated before the pandemic often locked union members into smaller wage increases as inflation surged.Mr. O’Brien has tapped into that resentment.A vice president and ally of Mr. Hoffa in the mid-2010s, Mr. O’Brien ran to replace him in 2021, deriding his predecessor for foisting concessionary contracts onto members. He vowed to raise pay for part-timers at UPS — an unusual concern for a would-be Teamster president, even though part-timers make up a majority of the union’s members there — and secured a significant wage increase.Fran Drescher, center, president of SAG-AFTRA, came to channel her members’ anxiety over declining pay because of the rise of streaming.Jenna Schoenefeld for The New York TimesOther union leaders have followed a similar arc. In 2021, Ms. Drescher ran for president of SAG-AFTRA, the actors’ union now on strike, on the union’s moderate slate and narrowly won. But she came to channel her members’ anxieties over the rise of streaming, which has led to longer gaps in work for many actors and more limited royalties as shows are reused less often.“The streaming contracts negotiated back at the beginning of this, when certain individuals thought this would be a fad, set us up for failure,” said Linsay Rousseau, a SAG-AFTRA member who works primarily as a voice actor. She said Ms. Drescher’s outspokenness had won over even members who voted against her.In some cases, outraged rank-and-filers have taken matters into their own hands. Edward Hall, a rail worker and local union official in Tucson, said he decided to run for the presidency of the more than 25,000-member Brotherhood of Locomotive Engineers and Trainmen in early 2022. The union’s longtime president had arrived to hold a town-hall meeting about labor negotiations that had dragged on for over two years. But, Mr. Hall said, he was unable to provide frustrated members with a timetable for a deal. (Dennis Pierce, the former president, declined to comment.)Mr. Hall was elected last fall, shortly after Congress intervened to enact a labor agreement that members of several rail unions had voted down. Many workers felt the agreement did not go far enough to rein in a system of railroad operations that sought to minimize equipment and employees.“It was profitable for them,” Mr. Hall said, referring to rail carriers. “But for lack of a better way to put it, it made life on the railroad hell for regular employees.”The combination of agitated members and more assertive leaders can sometimes pry loose concessions from employers even without a strike, especially amid a worker shortage. This year, rail carriers began voluntarily addressing one of the workers’ biggest concerns: the lack of paid sick days.At UPS, Mr. O’Brien spent months preparing his members for a possible strike, even holding training sessions for strike captains and practice pickets. The pressure appeared to yield significant gains in the recent tentative agreement between the two sides, including more than $7 an hour in raises over the five years of the contract.In an interview last month, Mr. O’Brien said the Teamsters’ actions under his leadership had made the strike threat credible. “We’ve been striking since I took over,” said Mr. O’Brien, pointing to other companies where the union represents workers. David Pryzbylski, a labor lawyer at Barnes & Thornburg who represents employers, said the strident rhetoric of union leaders often reflected a genuine shift in workers’ attitudes. Still, he added, negotiations more often hinge on fundamentals like a company’s profitability and the union’s ability to disrupt operations through a strike, making it wise for employers to ignore the bluster.“A lot of times that stuff stops: They go out and say what they wanted to say, they send up a signal flare and move on,” Mr. Pryzbylski said. “If you start responding, it stays in the news cycle.”Sean O’Brien, president of the International Brotherhood of Teamsters, in white, has repeatedly referred to corporate leaders as a “white-collar crime syndicate.”Jenna Schoenefeld for The New York TimesThe full-throated demands can also backfire in economic terms. Yellow, a trucking company with 30,000 employees, declared bankruptcy several months after talks with the Teamsters broke down. The company’s chief executive said in a statement that the Teamsters’ intransigence drove Yellow out of business, though analysts note that the company showed signs of mismanagement for years.The risks may be even higher in industries under pressure to embrace a new business model.The major U.S. automakers have said that they need the ability to team up with nonunion battery manufacturers to secure additional capital and expertise. But Mr. Fain, the new U.A.W. president, has said that the failure to organize more battery workers was a major failure of his predecessors, and that battery workers must receive the same pay and working conditions that union workers enjoy at the Big Three.Many U.A.W. members say the tension between the automakers’ goals and the union’s indicates that a strike will be hard to avoid when their contract expires in mid-September. But they do not appear to be shrinking from that possibility.“We have an extremely well-oiled machine,” said Ms. Shaw, who also serves as a co-chair of the organizing committee of Unite All Workers for Democracy, a reform group within the union that assembled the slate of candidates Mr. Fain ran on. “We’ll be ready to go if happens.” More

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    Workers at E.V. Battery Plant in Ohio Vote to Unionize

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    The result, at a plant owned by General Motors and a South Korean company, is a milestone for the auto union in organizing electric vehicle workers.In an early test of President Biden’s promise that the transition to electric vehicles will create high-paying union jobs, employees at a battery plant in eastern Ohio have voted to join the United Automobile Workers union.The outcome appears to create the first formal union at a major U.S. electric car, truck or battery cell manufacturing plant not owned entirely by one of the Big Three automakers. The factory, known as Ultium Cells, is a joint venture of General Motors and the South Korean manufacturer LG Energy Solution.A union statement early Friday said the result was 710 to 16 in two days of balloting.“As the auto industry transitions to electric vehicles, new workers entering the auto sector at plants like Ultium are thinking about their value and worth,” said Ray Curry, the U.A.W. president, in the statement. “This vote shows that they want to be a part of maintaining the high standards and wages that U.A.W. members have built in the auto industry.”The National Labor Relations Board said it had received the tally and would move to certify the result if no objections were filed.Mr. Biden issued a statement after the vote saluting the Ultium workers and declaring, “In my administration, American and union workers can and will lead the world in manufacturing once again.”While existing plants owned by the three legacy U.S. automakers have maintained a union presence as they have shifted production to electric vehicles, the union must start from scratch at plants like the one in Ohio and joint ventures through which Ford Motor is building battery factories in the South. Other electric vehicle companies, like Tesla, Rivian and Lucid, are also not unionized.The autoworkers union has long worried about the transition to electric vehicles, first noting in a 2018 research paper that electric vehicles require about 30 percent less labor to produce than internal combustion vehicles. The paper also pointed out that the United States was falling far behind Asian and European countries in establishing an electric vehicle supply chain.Read More on Electric VehiclesGoing Mainstream: U.S. sales of battery-powered cars jumped 70 percent in the first nine months of the year, as non-affluent buyers are choosing electric vehicles to save money on gas.A Bonanza for Red States: No Republican in Congress voted for the Inflation Reduction Act. But their states will greatly benefit from the investments in electric vehicles spurred by the law.Rivian Recall: The electric-car maker said that it was recalling 13,000 vehicles after identifying an issue that could affect drivers’ ability to steer some of its vehicles.China’s Thriving Market: More electric cars will be sold in the country this year than in the rest of the world combined, as its domestic market accelerates ahead of the global competition.A report last year by the Economic Policy Institute, a liberal think tank, estimated that the transition to electric vehicles could cost at least 75,000 U.S. auto industry jobs by 2030 if the government did not provide additional subsidies for domestic production, but could create 150,000 jobs if those subsidies were forthcoming.An ambitious climate and health care bill signed by Mr. Biden in August provided tens of billions of dollars in subsidies for the industry, raising the probability that auto industry jobs will be created rather than lost.But while Congress included certain incentives for union-scale wages in the construction of new plants, it ultimately removed elements of the legislation that would have helped ensure the creation of union jobs, such as a $4,500 incentive for vehicles assembled at a unionized facility in the United States.Josh Bivens, an author of the Economic Policy Institute report, said in an interview that he was pleasantly surprised that the administration managed to pass strong incentives for domestic production of electric vehicles. But whether the incentives will lead to good jobs, he added, is an open question.“There’s no real explicit subsidy or incentive to make these unionized or even high-wage,” Mr. Bivens said.Under the union’s contract with the Big Three automakers, veteran rank-and-file production workers make about $32 per hour. New hires start at a substantially lower wage and work their way up to that amount over several years.By contrast, companies that make electric vehicles or their components typically pay workers hourly wages in the midteens to the mid-20s.The union campaign at the Ohio plant was one of the easier tests facing U.A.W. organizers at electric vehicle facilities. The plant is in Warren, within a mile or two of a unionized General Motors facility in Lordstown that operated for decades before the company idled it and then sold it in 2019, making local residents familiar with the benefits of union membership.And while Ultium did not agree to a so-called card check process that could have bypassed a union election, it also did not wage a campaign seeking to dissuade workers from unionizing, according to a U.A.W. spokeswoman. Mary T. Barra, the General Motors chief executive, said in an interview on Bloomberg Television last week that the company was “very supportive” of the plant’s unionization.It is less clear how successful the union will be at organizing other new electric vehicle plants, such as an Ultium facility being built in Tennessee or three factories being built jointly by Ford and the South Korean battery maker SK Innovation in Kentucky and Tennessee, where the political culture is less hospitable to unions. Battery packs, which can cost around $15,000, are by far the most expensive component of an electric vehicle powertrain, the key parts and systems that power a car.The task may be even taller at plants owned solely by foreign manufacturers, such as an SK battery plant in Georgia or a huge plant that Hyundai is building in the state. The union has for decades struggled to organize so-called transplant facilities owned by foreign automakers in the South.Workers at the Ultium plant in Ohio, which began production this year, cited pay and safety issues as key reasons for unionizing. Dominic Giovannone, who helps fabricate battery cells, said he was now making about $16.50 per hour — a roughly $8 pay cut from his job at a plastic bag factory. He said the Ultium job attracted him because the plant was far closer to his home than his previous job had been.An Ultium spokeswoman said that hourly pay for rank-and-file workers ranged from $15 to $22 depending on experience and skills, and that the company paid a quarterly bonus and provided benefits as soon as employment began.Mr. Giovannone said that while the health care benefits were “phenomenal,” he wished the 401(k) match were more generous. He also said workers in his department were frequently required to handle harsh chemicals without enough information from the company to ensure that they did so safely.The lack of specific guidance on chemicals “is a big concern in the plant,” he said, adding that supervisors had not been very responsive when he and his co-workers prodded them on the issue.Ethan Surgenavic, a heating, ventilation and air-conditioning specialist at the plant, whose department is responsible for indoor conditions such as keeping humidity extremely low around certain components, said he, too, had taken a large pay cut to work there. He now makes $29 per hour, down from about $42, but he said the job also substantially reduced his commute.He agreed that the health benefits were strong but shared Mr. Giovannone’s concerns about safety. Mr. Surgenavic said that when workers raise questions about safety rules, “it feels like it lands on deaf ears.” He cited worries about having to change a machine’s air filter in a room that contains toxic material.The Ultium spokeswoman said that signs were posted throughout the plant with QR codes linking to safety information, and that paper handouts were also available. She said that the company had specific safety standards for issues like respiratory protection and chemical control and that it encouraged all workers to report concerns.The union campaign at Ultium took place against the backdrop of a recent U.A.W. election in which reformist candidates defeated several members of the longtime leadership caucus, citing rampant corruption within the union and members’ frustrations with limited improvements in their contracts over the past decade.In an interview, Shawn Fain, who will face the incumbent president, Mr. Curry, in a runoff election, said the union’s relative lack of progress in organizing electric vehicle plants reflected years of complacency with the union’s leadership.Mr. Fain said the Big Three automakers pursued electric vehicle joint ventures with foreign companies to make it harder for workers there to unionize. “The whole system is put together to circumvent the U.A.W. and any type of relationships with current members and employees,” he said. “At the first sign of that, our leadership should have went to war.”General Motors said it relied on joint ventures to bring in expertise that complemented its existing battery technology and to help meet the projects’ enormous capital requirements. The U.A.W. did not respond to a request for comment. More

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    Ford Plans 6,000 New Union Jobs in Three Midwestern States

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    Ford Motor said on Thursday that it was planning to invest $3.7 billion in facilities across the Midwest, much of it for the production of electric vehicles, which the company said would create more than 6,000 union jobs in the region.“We’re investing in American jobs and our employees to build a new generation of incredible Ford vehicles,” Jim Farley, the company’s president and chief executive, said in a statement. “Transforming our company for the next era of American manufacturing requires new ways of working.”The announcement, made jointly with the United Automobile Workers union, detailed investments in three states. Ford said it would invest $2 billion and create about 3,200 union jobs in Michigan, including many tied to production of the new F-150 Lightning pickup truck, the company’s highest-profile and most important bet on electric vehicles.In Ohio, Ford will spend over $1.5 billion and create nearly 2,000 union jobs, primarily to build commercial electric vehicles in the middle of this decade. The company also said it would add over 1,000 union jobs at an assembly plant in Kansas City, Mo., that will produce commercial vans, some gas-powered and some electric.The company had indicated that some of the investments would be coming, like the expansion of production capacity for the F-150 in Michigan, but had not detailed the magnitude.The moves follow Ford’s announcement last year that it would build four factories in Kentucky and Tennessee — three battery factories for electric vehicles and a truck assembly plant — irking union officials and elected leaders in Midwestern states, who worry about losing manufacturing jobs to the South.In addition to the new Midwestern jobs, Ford said it would convert nearly 3,000 temporary jobs into permanent full-time positions before the date that its contract with the U.A.W. calls for — which is after two years of employment.“We are always advocating to employers and legislators that union jobs are worth the investment,” the U.A.W. president, Ray Curry, said in a statement. “Ford stepped up to the plate by adding these jobs and converting 3,000 U.A.W. members to permanent, full-time status with benefits.”Assembling the F-150 Lightning at the Dearborn Truck Plant. Ford will add about 3,200 jobs in Michigan, many tied to the electric truck’s production.Brittany Greeson for The New York TimesSam Abuelsamid, an auto industry analyst at Guidehouse Insights, said the changes were important as a way to help Ford attract and retain labor in a tight job market, while potentially helping the company avoid costly labor unrest during negotiations over a contract that expires next year as it spends billions on the transition to electric vehicles. A six-week strike by workers at General Motors in 2019 cost that company billions of dollars.“I’m sure one thing Ford would absolutely love to avoid is the potential for a strike,” Mr. Abuelsamid said. “Keeping a positive relationship with the U.A.W. now is to their benefit.”But the investments appear unlikely to substantially diminish the broader threat that the shift toward electric vehicles poses to the autoworkers union and to employment in the U.S. vehicle manufacturing industry, which stands at around one million.“It’s about changing the perception of what’s happening,” Mr. Abuelsamid said. “It’s a balancing act between your work force and your investors,” who would prefer to see labor costs rise more slowly or decline at unionized automakers like Ford and General Motors.Because electric vehicles incorporate far fewer moving parts than gasoline-powered vehicles, they require significantly less labor — about 30 percent less, according to figures that Ford has generated.As a result, estimates suggest that the toll of electrification on auto industry jobs could be significant absent large new government subsidies. A report released in September by the liberal Economic Policy Institute, which has ties to organized labor, found that the auto industry could lose about 75,000 jobs by 2030 without substantial government investment.By contrast, the report found, if additional government subsidies encourage the domestic manufacturing of components and greater market share for vehicles assembled in the United States, the industry could add about 150,000 jobs over the same period.President Biden has backed substantial subsidies for electric vehicles, including vehicles made by unionized employees, but those measures have languished in the Senate and their prospects are uncertain.In the meantime, much of the job growth tied to electric vehicles has occurred at nonunion facilities owned by newer automakers like Tesla, Rivian and Lucid, or U.S.-based battery facilities owned wholly or in part by foreign companies like the South Korean manufacturers SK Innovation and LG Chem.In Thursday’s announcement, Ford noted that its new battery and vehicle production facilities in the South would create about 11,000 jobs. But those employees will not automatically become union members, and workers in those states tend to face an uphill battle in unionizing.For investors, however, Ford’s additional investments in electric vehicles appears to be welcome news as the company seeks to reinvent itself amid competition from the likes of Tesla and Rivian. Ford’s stock price, which had dropped substantially this year, rose more than 2 percent on Thursday.Ford also said Thursday that it sold 6,254 electric vehicles in May, a jump of more than 200 percent from a year earlier. That number included 201 F-150 Lightnings, which the company started producing in April.The company has about 200,000 reservations for the Lightning, which is central to its efforts to catch up to Tesla, and stopped accepting new ones because production will take months to meet demand.Ford indicated that sales of the truck would be much higher in the coming months as production increased and trucks in transit reached dealerships. Ford is aiming to produce 150,000 Lightning trucks a year by the end of 2023.Sales of electric vehicles — and conventional cars — have been limited by a shortage of computer chips. Ford’s overall sales of new vehicles in May fell 4.5 percent from a year earlier. Auto executives are also increasingly worried that the supply of lithium, nickel and other raw materials needed to make the batteries that power electric cars is not keeping up with the growing demand for those vehicles.Vikas Bajaj More

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    United Auto Workers reformers prevail in vote to choose president by direct election.

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    Members of the United Automobile Workers union have voted decisively to change the way they choose their president and other top leaders, opting to select them through a direct vote rather than a vote of delegates to a convention, as the union has done for decades.The votes on the election reform proposal were cast in a referendum open to the union’s roughly one million current workers and retirees and due by Monday morning. About 143,000 members cast ballots, and with 84 percent of the vote counted on Wednesday night, a direct-election approach was favored by 63 percent, according to a court-appointed independent monitor of the union.The referendum was required by a consent decree approved this year between the union and the Justice Department, which had spent years prosecuting a series of corruption scandals involving the embezzlement of union funds by top officials and illegal payoffs to union officials from the company then known as Fiat Chrysler.More than 15 people were convicted as a result of the investigations, including two recent U.A.W. presidents.Reformers within the U.A.W. have long backed the one member, one vote approach, arguing that it would lead to greater accountability, reducing corruption and forcing leaders to negotiate stronger contracts. A group called Unite All Workers for Democracy helped organize fellow members to support the change in the referendum.“The membership of our great union has made clear that they want to change the direction of the U.A.W. and return to our glory days of fighting for our members,” said Chris Budnick, a U.A.W. member at a Ford Motor plant in Louisville, Ky., who serves as recording secretary for the reform group, in a statement Wednesday evening. “I am so proud of the U.A.W. membership and their willingness to step up and vote for change.”David Witwer, an expert on union corruption at Pennsylvania State University at Harrisburg, said the experience of the International Brotherhood of Teamsters, which shifted from voting through convention delegates to direct election in 1991, after an anti-racketeering lawsuit by federal prosecutors, supported the reformers’ claims.Dr. Witwer said the delegate system allowed seemingly corrupt union leaders to stay in power because of the leverage they had over convention delegates, who were typically local union officials whom top leaders could reward or punish.“Shifting the national union election process from convention delegates to membership direct voting was pivotal in changing the Teamsters,” he said by email.At the U.A.W., leadership positions have been dominated for decades by members of the so-called Administration Caucus, a kind of political party within the union whose power the delegate system enabled.Some longtime U.A.W. officials credit the caucus with helping to elevate women and Black people to leadership positions earlier than the union’s membership would have directly elected them.But the caucus could be deeply insular. The Justice Department contended in court filings that Gary Jones, a former U.A.W. president who was sentenced to prison this year for embezzling union funds, used some of the money to “curry favor” with his predecessor, Dennis Williams, while serving on the union’s board.Union officials have said Mr. Williams, who was recently sentenced to prison as well, later backed Mr. Jones to succeed him, helping to ensure Mr. Jones’s ascent. More

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    John Deere Says Contract That Workers Rejected Was Its Final Offer

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    One day after workers at the agriculture equipment maker Deere & Company voted down a second contract proposal, the company said Wednesday that the proposal was its best and final offer and that it had no plans to resume bargaining.The rejection of the contract by roughly 10,000 workers extended a strike that began in mid-October, after workers based primarily in Iowa and Illinois voted down an earlier agreement negotiated by the United Automobile Workers union.The company confirmed its position in an email after it was reported by Bloomberg. A U.A.W. spokesman said only that the union’s negotiating team was continuing “to discuss next steps.”Marc A. Howze, a senior Deere official, said in a statement Tuesday night that the agreement would have included an investment of “an additional $3.5 billion in our employees, and by extension, our communities.”“With the rejection of the agreement covering our Midwest facilities, we will execute the next phase of our Customer Service Continuation Plan,” the statement continued, alluding to Deere’s use of salaried employees to run facilities where workers are striking.Many workers had complained that wage increases and retirement benefits included in the initial proposal were too weak given that the company — known for its distinctive green-and-yellow John Deere products — was on pace for a record of nearly $6 billion in annual profits.According to a summary produced by the union, wage increases under the more recent proposal would have been 10 percent this year and 5 percent in the third and fifth years. During each of the even years of the six-year contract, employees would have received lump-sum payments equivalent to 3 percent of their annual pay.That was up from earlier proposed wage increases of 5 or 6 percent this year, depending on a worker’s labor grade, and 3 percent in 2023 and 2025.The more recent proposal also included traditional pension benefits for future employees and a post-retirement health care fund seeded by $2,000 per year of service, neither of which were included in the initial agreement.Chris Laursen, a worker at a John Deere plant in Ottumwa, Iowa, who was president of his local there until recently, said he voted in favor of the new agreement after voting to reject the previous one.“We have the support of the community, we have the support of workers all around the country,” Mr. Laursen said. “If we turned down a 20 percent increase over a six-year period, substantial gains to our pension plan, I’m afraid we would lose that.”But Mr. Laursen said he still had concerns about the vagueness of the company’s commitment to improving its worker incentive plan, and such concerns appeared to weigh on his co-workers, 55 percent of whom voted to reject the newer contract.Another Iowa-based worker, Matt Pickrell, said that some co-workers skeptical of the second proposal had expressed a desire for a larger initial increase than the 10 percent the company offered.Mr. Pickrell said that he, too, had opposed the initial agreement but had voted in favor of the more recent one because of the improvements in retirement benefits.Larry Cohen, a former president of the Communications Workers of America, said the second “no” vote could indicate that members felt that the strike was working and that further gains were possible, despite the company’s declaration that it was finished bargaining.“They’re saying what they believe — their feelings are hurt,” Mr. Cohen said of Deere. “But what are they going to do about it? They’re not going to get the workers back.”Mr. Cohen said that Deere employees were among the relatively rare group of workers in the United States able to bargain on a companywide scale and that that, along with their stature in the communities where plants are situated, gave them considerable leverage.The work stoppage at Deere was part of an uptick in strikes around the country last month that also included more than 1,000 workers at Kellogg and more than 2,000 hospital workers in upstate New York.Overall, more than 25,000 workers walked off the job in October, versus an average of about 10,000 in each of the previous three months, according to data collected by researchers at Cornell University. More