UAW secures Democratic senators’ backing for battery workers joint venture

UAW secures Democratic senators' backing for battery workers joint venture

Senators Back United Auto Workers’ Push for Higher Wages and Benefits for Workers at Joint Venture Battery Plants

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In a boost to the United Auto Workers (UAW), more than half of the Senate’s Democrats have voiced their support for higher wages and benefits for workers at Detroit Three automakers’ joint venture battery plants. The 28 senators believe that these workers play a critical role in the United States achieving its clean vehicle goals, giving the UAW more leverage as they negotiate new contracts before their four-year deals expire on September 14.

The push for support from Washington began earlier this month when UAW President Shawn Fain met with lawmakers and President Joe Biden. The union leaders sought backing from the government, and in response, Senate Majority Leader Chuck Schumer, along with Senators Sherrod Brown, Ron Wyden, Bernie Sanders, Richard Durbin, and others, penned a letter to the CEOs of the Detroit Three and battery joint ventures. The senators urged the automakers to embrace the joint venture battery workers before the current contract expires.

According to the letter, the senators emphasized the importance of workers in the new electric vehicle (EV) sector and highlighted the federal support for EVs in last year’s Inflation Reduction Act. They expressed their concern over the starting wage of $16 per hour at current American joint venture electric vehicle battery facilities, labeling it a “national disgrace.” The senators pointed out the stark disparity between poverty-level wages for workers and the extreme financial gains experienced by the companies, executives, and investors.

While General Motors declined to comment and representatives for SK On (a unit of South Korea’s SK Innovation) and Ford did not respond, Stellantis, the parent company of Chrysler, stated that it respects the UAW’s right to organize future hourly employees at its joint venture battery facilities. They also assured that the joint venture intends to offer highly competitive wages and benefits.

Further support for the UAW negotiations came from Ford CEO Jim Farley and executive chairman Bill Ford, who recently met with lawmakers to discuss the talks and other topics. This engagement demonstrates the significance of the discussions taking place between the UAW and the automakers.

President Joe Biden’s administration has been actively involved in recent labor negotiations, with the president describing himself as the nation’s most pro-union president. The White House has expressed its commitment to good-paying jobs and supports the UAW’s goal. However, the UAW has not yet endorsed Biden’s reelection, as they want to ensure a fair transition in the shift to electric vehicles.

In response to the senators’ backing, Shawn Fain commented that they all agree that now is the time to ensure all autoworkers have equal pay and safety standards, continuing the legacy fought for and maintained by generations of UAW members.

The UAW has not been shy about voicing their concerns about worker pay. UAW Chief Shawn Fain previously criticized a $9.2 billion federal loan to a joint venture between Ford and South Korea’s SK On, as well as a GM and LG Energy Solution battery plant in Ohio, expressing dissatisfaction with the compensation received by workers.

The support from these senators adds weight to the UAW’s push for higher wages and benefits for workers at the joint venture battery plants. With the backing of influential politicians, the UAW’s negotiations aim to secure favorable contracts for the workers involved. These negotiations are not only important for the welfare of the workers but also for the United States’ progress towards its clean vehicle goals.

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