{"id":2089937,"date":"2023-11-04T11:32:04","date_gmt":"2023-11-04T15:32:04","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/winners-and-losers-in-new-contracts-between-uaw-ford-gm-and-stellantis\/"},"modified":"2023-11-04T11:43:06","modified_gmt":"2023-11-04T15:43:06","slug":"winners-and-losers-in-new-contracts-between-uaw-ford-gm-and-stellantis","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/winners-and-losers-in-new-contracts-between-uaw-ford-gm-and-stellantis\/","title":{"rendered":"New UAW Contracts: Who Comes Out on Top?"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fwinners-and-losers-in-new-contracts-between-uaw-ford-gm-and-stellantis%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2089937&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<p>Tentative deals between the United Auto Workers (UAW) and Ford, GM,\u200d and Stellantis ended a six-week strike against the three major automakers\u200b that has been described as a \u201chistoric\u201d win for the union\u2014but there has been some debate \u2063about \u2062how the agreements will \u200dimpact the auto industry\u2062 and consumers.<\/p>\n<p>\u201cThe D3 [Detroit Three] will \u200dbe \u200bunder enormous pressure to find new ways to cut labor\u2063 costs.\u2062 Over \u2064time they might increase production in Canada or M\u00e9xico. They might introduce more automation and robots in their plants,\u201d automotive industry expert and founder of Autoline John McElroy told\u2064 The Epoch Times.<\/p>\n<p>The deals with all three companies are generally \u2063the\u2062 same, although there are\u2062 some differences. All\u2062 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/winners-and-losers-in-new-contracts-between-uaw-ford-gm-and-stellantis\/\" title=\"New UAW Contracts: Who Comes Out on Top?\">give workers\u200d 25 percent\u200b general pay raises<\/a> with 11 percent upon ratification. With cost of living pay, the raises will exceed 30 percent by the time the contracts end on April 30, 2028. Workers hired after 2009 without defined \u2064benefit pensions will get 10\u200b percent annual company contributions to 401(k) plans, and they\u2019ll get $5,000 \u200bratification bonuses.<\/p>\n<p>\u201cIt\u200c is historic and if you think about \u2063the last two decades, it\u2064 is\u2063 a real turnaround. Auto workers have \u200dbeen taking concessions since the 1980s and have lost their premier spot among unionized workers in the United States,\u201d Judy Ancel, the retired director of labor studies at the University \u2064of \u2064Missouri &#8211; Kansas City, told The Epoch Times. \u201cThey used \u200dto have \u2062the best jobs of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nbc-poll-shows-gop-becoming-party-of-blue-collar-workers\/\" title=\"NBC Poll Shows GOP Becoming Party Of Blue-Collar Workers\">blue-collar workers<\/a> in the U.S. because\u200b of the power of the\u200b United Auto Workers and its control over the \u200dlabor market.\u201d<\/p>\n<p>Ms. Ancel says that unlike the former leadership at UAW, the new president of the\u200b union Shawn Fain \u201cpromised\u2064 to fight\u201d instead of \u201caccepting takebacks\u201d from the big three automakers, and that\u2019s why they were able \u2064to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/at-least-seven-dead-amid-chaos-at-kabul-airport\/\" title=\"At Least Seven Dead Amid Chaos At Kabul Airport\">make significant gains<\/a> against the companies in \u200ctheir tentative contract agreements.<\/p>\n<div class=\"my-5\">\n<p>But \u200dwhile \u2064the union appears to\u200d have scored a major victory, \u2062how will these concessions from Ford, GM, and Stellantis impact the rest of the auto world?<\/p>\n<h2>Consumers<\/h2>\n<p>American\u200c auto \u2062buyers are already facing enormous price runups since the pandemic: The average new car price has soared roughly 25 percent since the pandemic struck three years ago.<\/p>\n<\/div>\n<div class=\"shortcode\"><!--$--><\/p>\n<div class=\"border-comp-divider mb-4 mr-4 w-full max-w-[500px] border px-5 py-4 text-[16px] leading-[20px] text-[#262626] md:float-left\" id=\"in_article_related_stories\">\n<h2 class=\"mb-3 font-sans text-[16px] font-semibold uppercase leading-[19px] text-[#2F2F2F]\">Related Stories<\/h2>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-4 sm:line-clamp-3\">\n<a href=\"http:\/\/www.theepochtimes.com\/world\/ford-calls-on-ontario-liberal-mps-to-demand-carbon-tax-cut-on-natural-gas-5522484?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3 class=\"text-sm sm:text-base\">Ford Calls on Ontario Liberal MPs \u2063to Demand Carbon Tax Cut on Natural Gas<\/h3>\n<p><\/a>\n<\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">11\/3\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[70px] sm:basis-[120px]\">\n<a href=\"http:\/\/www.theepochtimes.com\/world\/ford-calls-on-ontario-liberal-mps-to-demand-carbon-tax-cut-on-natural-gas-5522484?ea_src=author_manual&#038;ea_med=related_stories\">\n<picture><source type=\"image\/webp\" https:><\/source><source type=\"image\/jpeg\" https:><\/source>\n<\/picture>\n<\/a>\n<\/div>\n<\/div>\n<div class=\"mb-4 flex gap-2\">\n<div class=\"grow\">\n<div class=\"mb-1 line-clamp-4 sm:line-clamp-3\">\n<a href=\"http:\/\/www.theepochtimes.com\/article\/uaw-members-at-ford-assembly-plant-overwhelmingly-approve-tentative-contract-5522366?ea_src=author_manual&#038;ea_med=related_stories\"><\/p>\n<h3 class=\"text-sm sm:text-base\">UAW Members at Ford Assembly Plant Overwhelmingly Approve Tentative Contract<\/h3>\n<p><\/a>\n<\/div>\n<div class=\"text-comp-caption text-[14px] leading-[18px]\">11\/3\/2023<\/div>\n<\/div>\n<div class=\"shrink-0 basis-[70px] sm:basis-[120px]\">\n<a href=\"http:\/\/www.theepochtimes.com\/article\/uaw-members-at-ford-assembly-plant-overwhelmingly-approve-tentative-contract-5522366?ea_src=author_manual&#038;ea_med=related_stories\">\n<picture><source type=\"image\/webp\" https:><\/source><source type=\"image\/jpeg\" https:><\/source>\n<\/picture>\n<\/a>\n<\/div>\n<\/div>\n<\/div>\n<p><!--\/$--><\/div>\n<p>Now, new labor costs incurred\u2062 by automakers as \u200dpart \u2063of the tentative agreements with UAW could further increase car\u200b prices in the \u2064future and the strike by union\u2062 workers (while limited) also shut down several\u2063 major assembly plants that cost the industry billions of dollars.<\/p>\n<p>\u201cConsumers will not benefit from these contracts in that they significantly raise labor costs for GM, Ford, and Stellantis who will try to pass these\u200b costs onto consumers. Other automakers might also take advantage of this to raise their \u2063prices too,\u201d \u200bsaid McElroy.<\/p>\n<p>Ford said earlier\u2064 that its deal with the union would raise labor costs by $850 to $900 per\u2064 vehicle. In addition, a study this month by Moody\u2019s Investors Service found that annual labor costs could rise by $1.1 billion for\u200b Stellantis, $1.2\u2062 billion for GM, and $1.4 billion for Ford in the final\u2063 year of the contract. \u200cThe study assumed a 20 percent increase in hourly labor \u200dcosts.<\/p>\n<p>Meanwhile, the\u200c union and some auto industry experts contend that the companies are making billions \u200bof dollars in \u2062profits and can afford to \u200bpay workers to\u2062 make up for\u200b previous\u2064 concessions.<\/p>\n<p>\u201cThey always\u200d threaten [to raise prices], and \u2063the public should \u200bhave \u2062some say over\u2062 whether or \u200cnot they wanna \u2064buy vehicles at even greater inflated prices than they already are paying,\u201d said Ms. Ancel. \u201cThe fact is \u200dthe automakers are rolling\u200d in dough and \u2064they can afford every bit of \u2064these agreements without raising\u200d prices \u2026 These companies have had extraordinary profits. \u200cThey have inflated the price of their \u2062stock through numerous stock buybacks rather than investing the\u2064 money in either their workers or\u200c in conversion to electric\u2063 vehicles.\u201d<\/p>\n<div class=\"my-5\">\n<p>UAW maintains labor expenses are only\u200c 4 percent to 5 percent of a vehicle\u2019s cost.<\/p>\n<h2>The Automotive Industry<\/h2>\n<p>The\u200c impact of the tentative deals with the \u201cDetroit Three\u201d is already rippling across the auto industry. \u2064Toyota announced this week that it\u2062 plans to increase\u200b wages of nonunion \u200bfactory workers.<\/p>\n<\/div>\n<p>Manufacturing workers at top pay who \u2064are paid \u2062hourly will receive a wage\u200d increase of \u200dabout 9 percent effective on Jan. 1. Logistics and service parts \u200cemployees who are also nonunion will be getting wage hikes as well.<\/p>\n<p>\u201cI\u200d think that these\u2062 agreements actually will \u2063create more of an incentive for nonunion \u2063workers to want to join \u2063the UAW,\u201d said Ms. \u200cAncel. \u2062\u201cI&#8217;ve even heard rumblings that there&#8217;s even an organizing effort at Tesla. We&#8217;ll see if that pans out. I expect that\u2063 Elon Musk is going to be one of the biggest union-busters in \u2062history, \u200dI think he&#8217;s even \u2064gonna outclass Howard Schultz\u200d at Starbucks.\u201d<\/p>\n<p>After accomplishing such a victory against the automakers, McElroy agrees there will likely be a big push \u200cby \u200dUAW \u2063to grow their membership.<\/p>\n<p>\u201cThe UAW\u200d will likely launch new efforts to organize the non-union automakers in America. They\u2019ve been \u2062unsuccessful in doing so for 40 years, \u2063but they feel emboldened\u2062 by the success of their new \u200ctactics. If they\u2019re able to unionize those plants it would erase the labor\u2063 cost disadvantage that the \u200cD3 has,\u201d he said.<\/p>\n<div class=\"my-5\">\n<p>The\u200b automotive industry was also hit in the \u2062pocket by the six-week UAW strike. \u2064Ford said that the\u2062 UAW strike cost it\u200c $1.3 billion in earnings before \u200dinterest and taxes. GM reported the strike cost it $800 million and Stellantis reported the strikes cost \u2063the company about $3.2 billion in lost\u2063 revenue through October.<\/p>\n<h2>The Labor Movement<\/h2>\n<p>President Joe Biden, who has described himself as\u200b the \u201cmost <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/labor-board-dismisses-union-misconduct-complaints-following-biden-purge\/\" title=\"Labor Board Dismisses Union Misconduct Complaints Following Biden Purge\">pro-union president<\/a> in American history,\u201d indeed made a \u2062historic move when he decided to walk \u2064the picket line with\u200c UAW \u2063members to show \u2062his support for their\u200d strike.<\/p>\n<\/div>\n<p>It\u2064 was viewed as a political risk if a deal didn&#8217;t manifest between the\u2062 union and the automakers, but \u2062now that it has,\u2062 President Biden and labor activists are taking \u200ba huge victory\u2062 lap.<\/p>\n<p>\u201cThis \u2026\u200b is a testament to the power of unions \u2064and \u2064collective bargaining to build strong middle-class jobs while helping our most iconic American companies\u200c thrive,\u201d Biden \u200dsaid in a statement.<\/p>\n<p>Ms. Ancel, who has \u200dbeen a union activist and organizer in both the United Steelworkers and the American Federation of Teachers, agrees.<\/p>\n<p>\u201cWe are beginning to see an \u200bupsurge in\u200b labor activism in this country for the first time since the \u20621930s,\u201d she said. \u201cSo it&#8217;s very \u2062exciting for people who follow the labor movement to watch as workers once again get the hope that they can get \u200bthe power\u200d by organizing and by sticking together to be able to take on these mega corporations which have been \u200dfleecing them for decades.\u201d<\/p>\n<div class=\"my-5\">\n<em>The\u200c Associated Press contributed to this report.<\/em>\n<\/div>\n<\/div>\n<\/blockquote>\n<p> <\/p>\n<h2>What was the point of the Flint sit down strike?<\/h2>\n<p><span>On December 30, 1936, General Motors workers at Fisher Body No. 1 became\u200c part of what has been called \u200bthe most significant strike in American labor history. These workers were fighting\u2063 for recognition of \u2063their union, the United Auto\u2062 Workers, and to keep \u2064their jobs from\u200d going to non-union \u200cworkers.\u2064 <\/p>\n<p>With the tentative deals reached between the United Auto Workers (UAW) and Ford, GM, and Stellantis, the six-week strike\u200c against the three major automakers\u2064 has come to an end. This has been hailed as a &#8220;historic&#8221; win \u2063for the union, but there is \u200bongoing debate about\u2063 how these agreements will impact the auto industry and \u200bconsumers.<\/p>\n<p>According to automotive industry expert John McElroy, the \u200dpressure will be on the Detroit Three automakers\u2063 to \u2062find new ways to cut labor\u2064 costs. This could potentially\u200d result\u200c in increased production \u200din Canada or Mexico, as \u2064well as \u2063the introduction of \u2064more automation\u2064 and robots\u200c in \u2062their plants.<\/p>\n<p>While the deals with \u2062all three companies are generally the same, there are\u200d some differences. They\u200c all include 25 percent general pay raises \u200dfor workers, with 11 percent to be received upon ratification.\u2062 With\u200b cost of living\u200c pay, these raises will exceed 30 percent by the end of the contracts in 2028. Workers hired after 2009 without <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/trump-tax-cuts-reduced-corporate-effective-rates-but-boosted-revenue-gao-report\/\" title=\"Trump Tax Cuts Reduced Corporate Effective Rates, but Boosted Revenue: GAO Report\">defined benefit pensions<\/a> will receive 10 \u200cpercent annual\u200c company contributions to 401(k) plans, as well as $5,000 ratification bonuses.<\/p>\n<p>Judy Ancel, the retired director of labor studies at the\u200c University \u2062of Missouri &#8211; Kansas City, describes these agreements as historic and a real turnaround for auto workers. \u200bThe\u200b United Auto\u2063 Workers used to have the best jobs among unionized blue-collar workers in the United States due to the union&#8217;s control over the labor market. However, they have\u2062 been making concessions \u2062since the 1980s and have lost \u200dtheir \u200bpremier spot. Ancel \u200battributes the recent gains to the new UAW president, Shawn Fain, \u2064who has\u200c promised\u200b to fight\u2063 rather than \u2064accept takebacks from the automakers.<\/p>\n<p>While the union appears to have achieved a major victory, it\u200d is important to consider the impact of these concessions on consumers and the rest of the \u200bauto\u200c world. American auto buyers are already facing significant price increases since\u200b the pandemic, \u2064with the average new car price soaring roughly 25 percent.\u200c The\u2064 concessions made by Ford, GM, and Stellantis may \u2063further contribute to price increases in the auto industry.<\/p>\n<p>As the \u2063industry navigates these agreements, it remains to be \u2062seen how the auto industry \u2063and consumers will be affected\u2062 in the long term.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tentative deals with UAW, Ford, GM, and Stellantis ended a 6-week strike. Seen as a &#8220;historic&#8221; win for the union, there&#8217;s debate on the agreements&#8217; impact on the auto industry and consumers. The Detroit Three&#8217;s future is uncertain.<\/p>\n","protected":false},"author":1544,"featured_media":2089938,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2089937","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2089937","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1544"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2089937"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2089937\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2089938"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2089937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2089937"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2089937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}