Houston Chronicle

UAW urges union wages at GM’s electric vehicle battery factories

- By Tom Krisher and Kimberlee Kruesi

NASHVILLE, Tenn. — The United Auto Workers union is calling on General Motors to pay full union wages at electric vehicle battery factories, thrusting what had been a festering conflict into the spotlight.

The union, in a statement reacting to GM’s announceme­nt Friday that it would build a second U.S. battery plant, said the company and its joint venture partner have a “moral obligation” to pay the higher wages at battery factories.

The statement sets the tone for the next round of contract talks in 2023 involving GM, Ford and Stellantis (formerly Fiat Chrysler), all of which have plans to make significan­t numbers of battery-powered vehicles by then as they invest billions of dollars to transition from internal combustion engines.

However the conflict is resolved, it’s likely to chart the course of U.S. manufactur­ing wages into the next decade as the nation moves from petroleump­owered vehicles to those that run on electricit­y.

GM said wages at the battery plants would be determined by Ultium Cells LLC, the joint venture with LG Energy that’s running the factories.

GM and LG Energy Solutions, its partner on the new plant in Spring Hill, Tenn., and another under constructi­on in Lordstown, Ohio, near Cleveland, should work with the UAW “to make sure these are good-paying union jobs like those of their brothers and sisters who make internal combustion engines,” the union statement said.

It also could draw President Joe Biden into the fray because he is pushing the transition to EVs, which he says will create “goodpaying, union jobs of the future.”

Currently, top-scale union production workers at internal combustion engine and transmissi­on plants run by GM, Ford and Stellantis make more than $31 per hour. But when the Lordstown plant was announced in 2019, GM CEO Mary Barra said its worker pay would follow GM’s component manufactur­ing strategy, where workers are paid less than top union wages. She said the plant would have to be cost-competitiv­e.

At a GM plant assembling batteries in Brownstown Township, Mich., the union agreed in 2009 to wages of $15 to $17 per hour to assemble battery cells into packs for the now-canceled Chevrolet Volt hybrid gas-electric vehicle. That’s a little more than what Amazon pays at distributi­on centers and just above a proposed $15 per hour new federal minimum wage. GM also pays about $22.50 per hour at union-represente­d parts manufactur­ing plants.

Kristin Dziczek, senior vice president at the Center for Automotive Research, an industry think tank, said workers who make internal combustion engines, transmissi­ons and associated parts are at “the epicenter of this industrial transforma­tion from internal combustion engines to batteries.”

With thousands of union jobs at stake, the UAW will want the higher wages, she said, but joint venture companies fear they won’t be competitiv­e globally if they pay too much.

“There’s lots of jobs on the line. The president talks about this transition being positive for jobs, but to do that it has to be very carefully orchestrat­ed,” she said.

Sam Abuelsamid, principal analyst at Guidehouse Insights, said Ford and Stellantis probably will follow a model similar to GM with joint ventures running battery plants, placing union jobs at combustion engine and transmissi­on plants at risk.

“The union is going to lose a huge number of jobs from engine and transmissi­on plants that are replaced by battery plants,” he said. “There are also going to be job reductions in the assembly plants due to simplified production of EVs, with probably somewhere around 25-30 percent fewer people required to build the same number of vehicles.”

The transition, he said, could cost the union half its membership in the next 10 to 15 years unless it successful­ly organizes the battery plants.

 ?? Associated Press file photo ?? Pickups and vans sit in a parking lot outside a General Motors assembly plant in Wentzville, Mo. GM says it will build a new electric vehicle battery plant in Spring Hill, Tenn.
Associated Press file photo Pickups and vans sit in a parking lot outside a General Motors assembly plant in Wentzville, Mo. GM says it will build a new electric vehicle battery plant in Spring Hill, Tenn.

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