Tesla And Foreign Automakers Could Be The UAW's Next Target

Industry News /12 Comments

The United Auto Workers union is eying Tesla and foreign brands that build cars domestically.

The United Auto Workers (UAW)strike affecting Ford, GM, and Stellantis could have grave consequences for Tesla, reports商业内幕. Analysts and wage experts told the publication that increased pay and stronger job security could prove too attractive to Tesla employees, who may be tempted to unionize.

Should the union prove successful, it will gain renewed strength to launch pro-union campaigns at multiple automakers, including Tesla, and foreign brands thatbuild their vehicles domestically. According to experts, even if that doesn't happen, these automakers may be forced to raise wages to keep up with the union rates.

Arthur Wheaton, a labor expert at Cornell University, told the publication, "This is a fight not just for the people working at Ford, GM, and Stellantis, this is absolutely a fight for all of the working class."

2020-2023 Tesla Model Y Driving Back View Tesla

Tesla workers have tried - and failed -to establish a union. Although the company denied it, reports claim employees who attempted to create a unionwere dismissed almost immediately. CEO Elon Musk has been accused of being anti-union and was even ordered to hire back an employee who attempted to unionize.

And that's not the only problem. Tesla's network stretches across the country through different plants and departments, so it would be difficult to get everyone on the same page discreetly and efficiently.

杰克·罗森菲尔德,工会专家在华盛顿niversity, said it's easy for large and "viciously anti-union" companies to get away with silencing pro-union individuals. "If you are a powerful private corporation dead set against a unionization drive, it's hard to imagine you losing that battle."

The White House/Twitter

While Tesla may have to contend with a union in the near future, the EV maker willbenefit from the ongoing strikes. The current spate of UAW industrial action will result in increased costs for the Detroit Big Three, making it more expensive for them to transition to electric vehicles.

As it stands, Tesla already has lower labor costs than its American counterparts. That's why the company can sell something like theModel Yfor around $43,000 (after incentives). As an aside, Tesla recently introduced a lightly refreshed Model Y, which you canread about here.

"This strike, in our view, is really going to hamper the Detroit Three's ability to compete in the EV market, just with the much higher labor costs," said Garrett Nelson, CFRA's Vice President of Equity Research, last week.

2020-2023 Tesla Model Y Driving Front Angle Tesla

As a reminder, the UAW is demanding a 36% pay increase over a four-year contract, with pension benefits, annual cost of living adjustments, and several other things. Union president Shawn Fain says the increase is in line with soaring profits and healthy executive salaries and bonuses.

Kate Andrias, a labor law expert at Columbia University, says the UAW's message has struck a nerve in many Americans, who look on as corporate profits soar - but their wages stay the same. "There's a deep concern about economic inequality in this country and the problem of the very, very, very rich being the only ones benefiting from productivity gains and technological gains."

The White House/Twitter

Join The Discussion

Gallery

2020-2023 Tesla Model Y Driving Back View 2020-2023 Tesla Model Y Driving Front Angle
4
Photos

Related Cars

Back
To Top