Fain and the union are clear winners at the end of bargaining, but others like Tesla and President Joe Biden may also come out ahead.
heading into the talks, but not many, if anyone, expected the union to strategically outmaneuver the companies like it did, leading to record deals for 146,000 UAW members with GM,
"There's lots of winners in this. So No. 1, of course, are the UAW members," said Art Wheaton, a labor professor at The Worker Institute at Cornell University."It was way more than I expected and thought possible ... It is a home run." The result was record contracts for union employees that squeezed more out of the companies than many anticipated leading into the talks.Fain said Sunday the UAW plans to use these record deals to assist in its embattled organizing efforts, including at auto companies outside of the three Detroit automakers, citing talks with the
It's not immediately clear how much the deals will increase labor costs for the companies, which had argued that giving in to all of the union's demands would affect their competitiveness and even long-term viability. "By having the UAW win huge gains at their plants, now the nonunion companies have a choice: You either raise your pay and benefits to keep up with what the current rate is for the UAW or you face the chances of getting a union organizer and driving your plans," Wheaton said.To offset rising labor costs and address slower-than-expected demand for electric vehicles, Ford and GM each announced delays in production or investments for EVs.
"Clearly the union came out ahead," Masters said."Companies will be able to survive the strike and be able to survive the rise in labor costs. But I'm not certain about whether or not they're going to win competition for electrical vehicles."The slower rollout of some EVs could allow Tesla more time to compete in the market with its current and upcoming products.
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