Waiting for UAW shoe to drop?

[Love2Cyber]

Wondering how much the looming UAW strike might be playing into the dragged out release details on Cybertruck? Big product launch...thinking that if I was making decisions on pricing and rollout, a small detail like having Ford, GM, and Stellantis workers in a bitter strike might be a factor. Thoughts? What are the implications for CT if there is a drawn out strike?

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[Kahpernicus]

What implications, Tesla doesn't believe in unions.

 

[BayouCityBob]

What implications, Tesla doesn't believe in unions.

UAW represents a small number of auto workers and only at Ford, GM, and Stellantis plants. All the other auto plants are non-union including:

• Hyundai
• Kia
• Toyota
• Subaru
• Honda
• Nissan
• BMW
• Mercedes
• VW
• Volvo/Polestar/Zhejiang Geely
• Rivian
• Tesla
• Lucid

A UAW strike boosts everyone except the Legacy Three.

 

[Diehard]

A long strike may mean UAW workers may have to cancel their CT reservations.

 

[Love2Cyber]

UAW represents a small number of auto workers and only at Ford, GM, and Stellantis plants. All the other auto plants are non-union including:

• Hyundai
• Kia
• Toyota
• Subaru
• Honda
• Nissan
• BMW
• Mercedes
• VW
• Volvo/Polestar/Zhejiang Geely
• Rivian
• Tesla
• Lucid

A UAW strike boosts everyone except the Legacy Three.

Bingo - you've got it. The big three US are a fraction of the total market, but huge in full sized pickups. I see some aligned / related elements here.

 

[BayouCityBob]

Ford Press Release from a few minutes ago... getting personal:

"The Ford team continues to put 100% of our energy into reaching an agreement with the UAW that rewards our valued employees and allows the company to invest in the future. If there is a strike, it’s not because Ford didn’t make a great offer. We have and that’s what we can control. In fact, we have put four offers on the table starting Aug. 29 and each one has been increasingly generous. We still have not received any genuine counteroffer.

On Tuesday, Bill Ford and I sat down with the union at the main table for a major offer. As we were walking in the room, we learned President Fain would not be attending. Nevertheless, Bill and I laid out a historically generous offer to the UAW Ford bargaining team because we listened to the UAW demands and we care about our employees. Here are the facts.

Ford:

• Significantly increased our proposal on wage increases;
• Offered Cost of Living Adjustments, or COLA;
• Fully eliminated wage tiers so all employees can achieve industry-leading wages – and shortened to four from eight years the time it takes hourly employees to reach the top wage;
• Increased contributions to in-progression retirement savings;
• Protected health care benefits that would continue to rank in the top 1% of all employer sponsored medical plans for lowest employee cost sharing; and
• Added more paid time off, with up to five weeks of vacation and 17 paid holidays each year (with the addition of Juneteenth).

The first we learned President Fain received the offer was on Facebook Live this evening. So again, we are here and ready to reach a deal. We should be working creatively to solve hard problems rather than planning strikes and PR events. Please remember that Ford, more than any other company, has bet on the UAW and treated the UAW with respect. We have been incredibly supportive of the union. We have gone well beyond any contract language in adding jobs and investment. The future of our industry is at stake. Let’s do everything we can to avert a disastrous outcome."

 

[Crissa]

Also, the strike was aiming only at the new battery plants which were offering substandard replacement wages. AKA, less than Tesla's paying.

-Crissa

 

[Love2Cyber]

Also, the strike was aiming only at the new battery plants which were offering substandard replacement wages. AKA, less than Tesla's paying.

-Crissa

Perfect reason to allow free market to advance our low C02 requirements. Sorry if this creates endless loops for some of you... Anyway - as a consumer with a good reservation number - bring it on!!

 

[Crissa]

Perfect reason to allow free market to advance our low C02 requirements.

...The free market wasn't?

-Crissa

 

[Arctic_White]

Ford Press Release from a few minutes ago... getting personal:

"The Ford team continues to put 100% of our energy into reaching an agreement with the UAW that rewards our valued employees and allows the company to invest in the future. If there is a strike, it’s not because Ford didn’t make a great offer. We have and that’s what we can control. In fact, we have put four offers on the table starting Aug. 29 and each one has been increasingly generous. We still have not received any genuine counteroffer.

On Tuesday, Bill Ford and I sat down with the union at the main table for a major offer. As we were walking in the room, we learned President Fain would not be attending. Nevertheless, Bill and I laid out a historically generous offer to the UAW Ford bargaining team because we listened to the UAW demands and we care about our employees. Here are the facts.

Ford:

• Significantly increased our proposal on wage increases;
• Offered Cost of Living Adjustments, or COLA;
• Fully eliminated wage tiers so all employees can achieve industry-leading wages – and shortened to four from eight years the time it takes hourly employees to reach the top wage;
• Increased contributions to in-progression retirement savings;
• Protected health care benefits that would continue to rank in the top 1% of all employer sponsored medical plans for lowest employee cost sharing; and
• Added more paid time off, with up to five weeks of vacation and 17 paid holidays each year (with the addition of Juneteenth).

The first we learned President Fain received the offer was on Facebook Live this evening. So again, we are here and ready to reach a deal. We should be working creatively to solve hard problems rather than planning strikes and PR events. Please remember that Ford, more than any other company, has bet on the UAW and treated the UAW with respect. We have been incredibly supportive of the union. We have gone well beyond any contract language in adding jobs and investment. The future of our industry is at stake. Let’s do everything we can to avert a disastrous outcome."

I hate to say it but Ford and GM are both screwed.

This is just the final nail in their eventual coffin and I just don't see how they survive the transition to EVs unless they get more money from the government (read: bailout).

 

[Arctic_White]

Also, the strike was aiming only at the new battery plants which were offering substandard replacement wages. AKA, less than Tesla's paying.

-Crissa

Well, that may be true but the overall cost to the manufacturer is still the same with employees getting less. This is because the Union extracts a significant cut from the employee's pay.

In other words, Ford should model what Tesla does: pay the employees well, and give them healthcare, but don't have a union in the middle.

 

[jerhenderson]

Also, the strike was aiming only at the new battery plants which were offering substandard replacement wages. AKA, less than Tesla's paying.

-Crissa

that makes no sense.... threaten to strike because you want a battery plant to pay their staff more. Pretty sure that's not legal.

 

[cal]

I’ve never seen anyone say how much of the wage increase could be funded by lowering CEO, CFO salaries. You can pay a lot of employees with the $ they make.

Yea I know benefits add significantly but It could help. Besides if they were worth the $ they’re getting the company wouldn’t be in this to begin with.

 

[Bill W.]

Please keep in mind that many of the automotive suppliers are unionized. Not sure how many parts (if any) Tesla gets from these vendors, but a full-on UAW strike will shut them (the suppliers) down as well.

 

[TyPope]

Please keep in mind that many of the automotive suppliers are unionized. Not sure how many parts (if any) Tesla gets from these vendors, but a full-on UAW strike will shut them (the suppliers) down as well.

it might shut them down for a little while but they'd run out of funds in less than 90 days and people start getting antsy to return to work once they have to go a few pay periods without checks. OR, the individual companies cave to demand (or go under) and start producing.

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