UAW’s record deal / The United Auto Workers and the Detroit Three automakers have tentatively reached an agreement. This is a significant win for labor unions, who have increased pressure on large firms to offer better bargains.
Unions have stepped up their agitation with a number of high-profile fights in the automotive, entertainment, healthcare, and industrial sectors. Gains achieved by unions, according to experts, may encourage greater organization and drive non-union businesses to make an attempt to thwart such initiatives.
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2. The UAW’s talks / UAW’s record deal
The UAW’s talks were among the most transparent, complete with weekly speeches by union president Shawn Fain. In recent days, the union reached provisional deals with Ford Motor and Chrysler parent Stellantis . Early on Monday, General Motors also reached an agreement with the union.
According to labor scholar Harley Shaiken of the University of California, Berkley, “this is a set of negotiations where gains made in Detroit would be viewed and adapted by many other industries across the economy.”
U.S. federal data show that union worker pay has now caught up to non-union wage rises that date back to the COVID-19 epidemic. This is despite the tight labor market, with unemployment hovering around 3.8%.
When compounding and cost-of-living increases are taken into account, the tentative agreements are predicted to result in overall pay increases of more than 33%. According to labor and employment expert John Logan of San Francisco State University, the agreements may serve as a selling point for non-union retailers looking to push for unionization.
3. “The Big Three would want the UAW to organize Tesla,” he said.
“The Big Three would want the UAW to organize Tesla,” he said.
It could be necessary for Nissan and other rivals to raise pay in order to keep employees. The union made it apparent late on Sunday that it intended to unionize more autoworkers by highlighting the contract’s duration, which expires in 2028, in a number of social media posts.
“One of our biggest goals coming out of this historic contract victory is to organize like we’ve never organized before,” stated the United Automobile Workers. “When we return to the bargaining table in 2028, it won’t just be with the Big Three, but with the Big Five or Big Six.”
Support from the general public for unions has aided participation in historically unionized sectors like manufacturing and healthcare. According to a Reuters poll, most Americans support striking laborers.
Workers who view unions as a way to gain better pay and working conditions have come to a consensus, which has been reflected in employee-led unionization initiatives at businesses like Amazon and Starbucks.
It has been hard to organize throughout the last few years. In contrast to 23.6% in 1982, about 11.3% of workers were represented by unions last year, according statistics examined by the Economic Policy Institute.
4. RIPPLE EFFECT (UAW’s record deal)
Along with agreements at UPS and construction equipment manufacturer Caterpillar (CAT.N), the UAW contracts are just a few of the numerous agreements achieved this year. Despite rises that in some contracts were large, workers at other businesses, including as Mack Truck and equipment producers CNH Industrial and Deere & Co., have also rejected first proposals.
Workers’ growing awareness of record earnings has resulted in concessions from the firm and better arrangements, according to Marcos Feldman, senior researcher at the labor organizing charity Jobs to Move America.
Feldman stated, “The task is to institutionalize and solidify it.” “Unionizing efforts are the most aggressive they’ve ever been.”
In order to support American industry, President Joe Biden’s $1.2 trillion bipartisan infrastructure bill is based on the belief that unions are essential to his economic policies.
In response, employers can increase worker compensation to stall unionization attempts or intensify anti-union measures.
According to several workers, Starbucks unlawfully reacted against the organizers by shutting locations and terminating staff members. The U.S. Department of Labor issued an order to the corporation earlier this month requiring it to reveal information about anti-union funding.
The National Labor Relations Board (NLRB) recently ruled that Amazon had threatened to withhold salaries and benefits from employees at two New York facilities, which has discouraged unionization.
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5. UPS AND ITS RIVALS (UAW’s record deal)
Driver compensation at the Atlanta-based UPS was increased and a two-tier salary structure was removed as part of the August settlement. This encouraged Amazon employees to organize and increased pressure on UPS competitors to correct a widening wage disparity.
The average full-time U.S. driver would earn over $170,000 in salary and benefits annually when the current UPS deal ends in 2028, which is much more than counterparts working as contractors for Amazon and FedEx.
In order to increase the average driver’s salary to an anticipated $20.50 per hour, Amazon handed delivery contractors $440 million for the entire year in September. Amazon informed Reuters that the payment was unaffected by the UPS deal and was a part of routine hikes. Comparisons with previous years were not provided. FedEx stated that its delivery contractors determine their own pay rates and that it periodically examines the compensation of its directly hired delivery personnel to make sure it is competitive.
“An observation in this economy is that disgruntled workers are more likely to resign,” said Cornell University’s head of labor education research Kate Bronfenbrenner. “Industries where they’re more likely to stay are the ones where they unionize and they stay and fight.”
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