John McElroy: UAW Has Won The Battle, But May Cost Detroit The War

[@shazzizzle]

What an amazing surprise to see John on this show! Should be in the headline! John is an expert of the auto industry, his insights are invaluable!

[@lolo2556]

The man is an auto industry shill that hates union labor.

[@user-gd8ud7fq9y]

What a treat - like your two favorite bands playing together.

[@conchobar]

The UAW was the scapegoat during the early 80s, and then in the 90s the Big 3 moved factories to Mexico and the south, saving a ton on cost and significantly increasing profits, yet they still needed Obama to bail them out. UAW compensation has never been a catalyst for US automakers success or failure. We really need to kill this myth. Worker compensation isn't the primary reason why Tesla is so profitable, so why assume it should be so for GM, Ford, or Stellantis?

[@accountability2000]

Agree!

[@godofdun]

Exactly, a lot of "boo hoo, poor multibillion dollar corporation" going on here.

[@TJPavey]

Increased worker wages is always a scapegoat mostly because it’s something the billionaire class can control. Costs of materials, facilities, advertising, etc are 100 % market driven and out of control of the business owners. Business owners can control wages and prices. They then try to make the public hate unions because unions take away their power. Also stopping unions allows employers to treat employees like replaceable parts. I am in health care and when I have hospitalized patients they often need me to fill out FMLA and short term disability to prevent them from getting fired. Business owners used to treat employees well, now they overwork them and then fire them when they are burned out. The US desperately needs this. If all workers suddenly make 25% more and it only raises costs of goods by 2 - 10% that would be a win for everyone. The economy would boom. Decades of wage suppression has ultimately hurt these companies because the only thing they cared about was the next quarter. Eventually when no one has disposable income, the businesses fail.

[@mrreddog]

@@TJPavey TJ knows what he's talking about, Ive seen it at Chrysler for 28+ years. Along with the government dangling tax payers money in these CEO's face, the big push for electrification will be a huge failure, nobody want this. Bottomline is these CEO's are the greedy bastards that brings the whole industry down.

[@snookmeister55]

UAW will continue to be the scapegoat - already seen as the reason for scaled back EV plans.

[@mrdsn189]

John is the GOAT! I got so excited when I saw you were having him on!

[@softpanda2458]

That was a great segment..,... awesome guest.....keep them coming

[@loriallen67]

Great Show! Excellent guest!

[@BatteriesIncludedPodcast]

Thanks! John's the best.

[@dawnproduction1577]

The big 3 have spent 66 billion dollars on stock buybacks and dividends in the last decade. Maybe... that should equally be blamed for them scaling back on battery factories as actually needing to pay a living wage.

[@conchobar]

Goodluck waiting for people to discuss that.

[@4literv6]

Quick simpleton tell us how much in profit sharing they've each paid out in that same time frame! Per actual public info? Just last year stellantis paid out over 13k in profit sharing per member, gm over 11k and Ford almost 9k. Farley said the past 10 years alone has seen ford pay out over $79,000 in total profit sharing per union member. Quick riddle us this how many folks do you know that get anything approaching that size of a check in bonuses from their workplace annually! Imagine being a simpleton assembling cars in a climate controlled building and believing you are worth mid six figures in total comp! The union themselves admitted less than 17% of current members even qualify as being classified as skilled labor. 👍🏻😀

[@79glane928]

​@@4literv6imagine being bitter because you spent a bunch of money on college and still being outearned by an "unskilled laborer"

[@mikethecargeek]

Great get, interview and timing 🚗

[@steveclemens8488]

This "really good deal" for the workers.....is...basically what EVERY worker in Europe has.....Good Healthcare...5 weeks vacation....etc etc etc

[@hankmoody7521]

Not if you work at Tesla Giga Berlin-Brandenburg.

[@Wolfy615]

Don’t forget 32 hour work weeks over there too

[@tmiller249]

I would point out that if the companies had been easing these concessions back over all these years it wouldn't be as big of a hurt all at once now. And there is still items that are not back with this TA.

[@nicholassmith4154]

We do still pay copay with our insurance dental is ok but not great vision insurance I can't even use because no one will accept it near me.

[@turnne]

My understanding is that these worker concessions will only add about $900 to the price of a new FORD....Which suggests that Shawn fain was correct in his statement that labor is only 5% of the cost of a vehicle for the BIG3 But...all the statements from the executives that this was going to bankrupt them?....What was the justification for all the thousands( and tens of thousands ) of increased prices over the last 2 years?..They certainly didnt give the workers anything Where was all the increased revenue going ?

[@DougGrinbergs]

New Republic: "By thinking big, Shawn Fain is summoning memories of Walter Reuther and the autoworkers' union's finest hour."

[@SpottedSharks]

I spent 12 seconds wondering why John McEnroe was commenting on labor-management disputes.

[@BatteriesIncludedPodcast]

🤣🤣🤣

[@gregpochet4812]

Maybe the CEOs and the other top brass can "ONLY" make $5 million(salary and bonuses) instead of $15, $20,$30 million. But we all know those execs won't give up their 3rd house and boats. So they will raise prices on their cars.

[@anonnonen694]

GM CEO Barra makes 2.1M in base salary, Made 6.2M in performance based bonuses. And that 20M everyone thinks comes from profit is actually STOCK OPTIONS NOT CASH. So the next you think all those “high” payed ceo are getting mountains of cash remember what they are really getting is stock options stock that they CANNOT sell without restrictions on how long that have to hold it.

[@phillyphil1513]

"You can have the keys to my HELICOPTER when you pry them from my cold dead fingers..." (greedy Automotive CEO and their supporters voice)

[@gregpochet4812]

@@anonnonen694 You must be a CEO or executive or a family member of one. Complaining that they didn't get $20 million in cash. Tone deaf to the nTh degree.

[@anonnonen694]

Those record profits the big 3 are making were meant to keep them afloat as they transition to EVs. Detroit loses money on every ev they sell and because of Corporate Average Fuel Economy or CAFE standards Detroit has to kill some of its best selling ICE cars ie. the camero, charger, and challenger. This is also why Detroit is making high margin trucks and suvs they cost well above 60k instead of the affordable fiesta and focus the market would love right now.

[@tonys9413]

@@anonnonen694yeah, until they bankrupt the company, sell their stocks before it collapses, and hike out of town leaving the workers jobless.

[@lh2338]

Tesla's own website & disclosures say that all employees may elect to receive stock grants or options, but cash awards are the default. This is a pretty common practice in Silicon Valley now. Rank & file employees can get stock incentives, but they have to jump through some hoops and read the fine print.

[@snookmeister55]

In my experience, an election of benefits is simple, not "jumping through hoops." Anyone who can't handle an election is unemployable.

[@Stan-at-KangarooIslandTV]

Unions are important. We need affordable EVs but not at the expense of our standard of living.

[@markrichards9792]

The problem isn't just the salary, it is the days off, the lack of motivation to work hard, etc.

[@mike9588]

The Big 3, for the time being have no competition on full size trucks let’s be honest Toyota has never been able to crack the full size truck market which is where the big 3 make a majority of their money/ profit, with electric trucks, you wonder if the big 3 lose that advantage because most likely the regular full size ‘half ton’ category will all be unibody based on ground up EV platforms (I know f150 lightning and RAM REV are body on frame) but those aren’t ground up EVs, what would block the Koreans/ Japanese from making an actual competitive full size truck, Tesla Is the biggest competitor to the Japanese where they primarily have the shrinking sedan, and mainstream sub-compact, compact, and midsize suv market they’re eating up a lot of the market and don’t forget the model 3 will most likely only trail the Camry in sales. UAW should take this contract and go to the Japanese OEMs and to tesla and truly give a level playing field

[@jeffmeyers2106]

I am a retired union member and if i was working at Tesla right now, i would say thanks but no thank you to being a union member. There is nothing the union could give me in benefits that equal what Tesla would give me.

[@christianrichard5805]

Problem with the transplant plants is they’re based in areas like my state of Texas where people very much dislike unions cause of old mob movies and other things or they just have no idea what unions can do because of disinformation campaigns companies down here do to break union forming or it’s just not a cultural thing down here in the south. Can be done but people need to see the $ with their own eyes

[@Icayn]

Conservative thinking folks tend to think big picture like John is saying. How will this effect the competitiveness of the USA. How will this effect auto prices and job growth. All these things are hurt by unions. Also Unions have historically been sleazy dishonest and corrupt. If you value anything other than your own bank account you think long and hard about inviting them in. Once in you can’t get them out.

[@rp9674]

Agree, nationality I think there's been a lot of brainwashing, so many people side with the poor Mega corporations. Sounds crazy if you don't know how powerful PACs & lobbies are and how they work

[@johnpoldo8817]

We have a world economy so I don’t see how union plants can stay in business competing with the Chinese. Their average worker is not making anywhere near $100k/yr. There will be more jobs replaced by automation and robots to eliminate that 100K worker. Unions are really hurting the US autoworker.

[@seymorefact4333]

🤣😂🤔 MIDDLE MANAGERS will get a raise too! Mary Barra also has another $5 m in benefits (private jets, security, etc). Plus, she will pay less taxes for deferred income.

[@HXCC]

John, you need tell public that corporate VP went to jail with UAW leader as well. His name is Alphons Iacobelli. Corporate executive is as bad as UAW leader.

[@mrreddog]

Electrification WILL be a huge failure. And these fat ceo's are going to blame the UAW for every mistake they make.

[@HXCC]

25% sounds a large wage increases, have you tell this is for period of time from 2009 to 2027 ? 18 years of the increases, tell me how many non-auto industry employee got a lot more than that during the same time ? This strike is looking for Justice.

[@aaronmcquaid]

no chance that they unionize tesla

[@maaudiosubs]

Stop billions in stock buy backs if it there hard up. Cut ceo pay also. Until then don't blame the factory workers.

[@robertpulliam9973]

Two hrs wages for union dues per month

[@rp9674]

Flip it, take a pay cut and the company will do better and increase your longevity, who would take that deal?

[@rp9674]

Suppliers losing business, blame it on the CEOs too, not just the workers

[@rp9674]

If these CEOs are worth their money they should be able to make it work

[@JoeOutdoors]

@@rp9674 Don't forget us shareholders, half my dividends over the last 30 years would have still enabled my to retire early. The folks putting the product that provides the income that covers management salaries and bone us money, dividends and labor salaries together could get a fairer share of the pie.

[@jascfdrac]

Won the battle to unemployment!

[@tedadamgreen]

This is a dream come true! Two of my favorite podcasts together Whahooooo!!

[@stargazer3828]

You guys keep saying, "in the long term" or "6 to 10 years from now", but do you realize that the UAW contract is only valid for 4.5 years so things can be renegotiated after that to reflect the future conditions at the time.

[@BatteriesIncludedPodcast]

Sure, there is an opportunity for negotiation again in 4.5 years, but it's hard to imagine the union giving up anything then.

[@stargazer3828]

@@BatteriesIncludedPodcast If the auto environment dictates it the union will have to conform! They did it in 2008 because the financial conditions dictated it so there is no reason for them not to do it again if conditions warrant it!

[@CaptDnaDonut]

This was a good talk. I do worry about the detroit automakers ability to compete to some degree but if they cant compete without keeping workers wages stagnant then they dont deserve to compete. Another key take away for me is that non-union workers should also get a significant pay increase. Which is good. Even if you aren't in a union you will generally benefit from their existence. EDIT: GM is the only holdout now. EDIT: GM and the UAW have a deal. That's all three. Shame it had to come to a strike.

[@akpowarri3504]

This statement of yours, quote, "if they cant compete without keeping workers wages stagnant then they don't deserve to compete" essentially means that those workers are better off unemployed than working for stagnant wages. The logic is already questionable without taking into consideration that they could resign and let others willing to work for those wages take the job, thus satisfying new workers and old car company allike.

[@CaptDnaDonut]

@@akpowarri3504 why would the workers have to be unemployed? Could they never find another job? They probably like the company but know that they should be getting paid more. Also constant turnover and training new people is really annoying and would also hurt the old car companies financially. It's in their best interest to keep people who know how to do the job already.

[@Wolfy615]

@@CaptDnaDonutyou speak true.. we may be ‘low skilled’ but it’s definitely hard labor (for the most part).. been at Ford for 8 years and can’t tell you how many cocky people have walked in thinking they’re about to make easy money and just put a bolt on car for 10 hours.. only to ‘go to the bathroom’ with their lunch and backpack and never come back 🤣 Turnover is baaaad it definitely takes a certain type of person mentally and physically to do work for the big 3 Hell, I’m 34 and have already had spinal surgery due to an exploded disc in my neck.. we deserve this big raise and more Local 862 ✊

[@JahisLovePsalms]

@@Wolfy615we deserve way more I’m voting NO

[@Wolfy615]

@@JahisLovePsalms no matter how you vote unfortunately it’ll probably pass 51 - 49

[@michaelmolock]

I’d like to thank you guys for having John McElroy from Autoline on your podcast. I’m not an industry person. But an auto enthusiast who has followed John for years. He is, in my opinion, not only a trusted source but one of the only authorities that is tided into the industry.

[@lalutte65]

They just opened the US market demand for low cost Chinese manufactured vehicles

[@phillyphil1513]

re: "They just opened the US market demand for low cost Chinese manufactured vehicles". uh huh, good luck with that. following after Munro you kids have been "beating that dead horse" for some time, but being "baby young to the world" you haven't a clue how Politics in 'Murica (DC especially) actually works.

[@ab-tf5fl]

Tariffs will make sure that that never happens.

[@gregkramer5588]

First this time! Oh John from autoline daily. I agree that the domestic automakers are struggling to remain competitive. Ford and GM are in a position where they are not very competitive on price already IMO. The cash cows of the F-Series and Silverado are really holding them afloat. The point about the the top 1% is right on but they are not the customers. I like to see workers make good money but it is a balancing act. The new pay seems so much higher than the average mfg. job in the US. I think the union went to far. I see automation replacing workers even quicker and as John mentioned. A big plus for imports. Sean Fain is over the top in his talk. I want more logic and less hyperbole. My guess is that UAW is going to shrink in numbers as they kill themselves over time and as the small suppliers get decimated.

[@cback94]

A good point… John is right about the future of UAW.. I really think UAW will Do more damage than good with this new contract…. Workers wants to get $$ Now… sorry clown.. you gotta put in your time to make big money.. they should be grateful to have a job and benefits now a days…

[@hugoandrade1885]

Best episode yet , thank you

[@pnketia]

Thank you for having John McElroy on your show. I have been following him since the days of his show Autoline Detroit that was on my local PBS channel and he knows what he speaks of when it comes to the auto industry. I agree with his views 100%.

[@steveclemens8488]

You know what else puts the Big Three and every American business at "a competitive disadvantage" The fact that we don't have Universal Healthcare like all the other civilized Western nations and the burden that places on business and our citizens is obscene

[@shauna996]

We fund a military to police the world subsidizing the rest of the free world to provide healthcare to their populace.

[@Wolfy615]

Everyone would make more money.. blue collar and white collar alike if the US would get with the program

[@GarretL757]

This is great, LOVE John McElroy.

[@ultrastoat3298]

Wow, John McElory. Never expected to see him on this channel. Dude knows his stuff.

[@lolo2556]

All he does is repeat what the auto industry tells him.

[@silverfox3061]

John is a corporate puppet. His math and information is not accurate. The companies do NOT have to pass $900 on to consumers. Majority of american dont want EV vehicles. Union dues are 2.5 hours wages each month. Its optional to pay it in right to work states.

[@chyldstudios]

Why is your mid-week podcast coming out on a Monday? Isn't Wednesday mid-week?

[@StateOfChargeWithTomMoloughney]

We thought about that but since our podcast is on Friday, we thought Wednesday was too close. So Monday and Tuesday are "mid -week" in between our regular show.

[@ericm4840]

John McElroy is very perceptive and communicates his understanding clearly. Fascinating interview.

[@videosbystofferson3945]

Unions created the middle class. With all of the union busting that started during the Reagan years, the middle class has been shrinking ever since. Now there are fewer people doing more for less overall. That is not good for the bulk of the people.

[@ab-tf5fl]

Unions are generally good for the people in the union. But, if every industry is unionized (some, much more labor-intensive than auto manufacturing), then the gains you get from your own union get eaten up by having to pay more for everything you buy to support everybody else's unions. An extra $900 to the price of a car may not seem like much in isolation, but if the prices of everything you buy increase by similar percentages, that adds up fast. The "working class solidarity" argument makes some amount of sense when you're comparing against competitors in the same industry (e.g. the UAW deal with the big three forces Toyota and Tesla to pay their workers more to forestall unionization there). But, people who work in completely different industries don't really benefit from this, and many of them would, quite honestly, rather just have access to cheaper cars.

[@mtumasz]

Always nice to see your favourite YT channels converge ❤

[@benhillard919]

So I'm not super informed on unions and the america auto industry. It does sound like BIP is placing the blame on the layoffs of Auto-workers on the strike itself versus the people who are actually laying people off which was the auto industry itself. It sounds like everyone frames this as a long term negative (not in any clear words, just foreboding allusions) and that it allows non-domestic companies (and tesla) to come in a take a good lion's share of the profits. But even before this everyone was saying that the second China gets in the US it's over. It doesn't sound like that has really changed IMO from before the strikes to after. Maybe I'm missing something key that someone can point me to.

[@cjonesplay1]

Another Great Show Guys. Love John and Autoline.

[@godofdun]

I hear what you guys are saying, I do, but our electric future cannot and will not come at the expense of the working class. Everything has come at their expense for the last 40 years, couple that with the high inflation of the last few and we're just not taking shit anymore. God forbid the people that design these damn things actually get creative on how they're engineered and put together to make the vehicles more cost competitive. Also, Dom 36:40, I'd love to live in the country that you describe with better/more comprehensive labor/pay laws, but we DON'T live there and we all have to deal with the country we have at the moment.

[@aomurdock]

Food for thought: Tesla may never or be the next to last company to unionize. Why? Because its new employee Optimus will refuse union membership!

[@lolo2556]

Blaming working people for wanting what their owed

[@fcv1967]

McElroy is a legend

[@deandreyoung850]

800 dallors on a 100,000 dallor suv is not goin make a difference to anybody

[@johndonaldson5126]

Following labor cost increases the big 3 will be looking for ways to cut costs. One way to cut costs is to replace humans with robots. Auto plants are already highly robotic but this will bring a new level of automation, causing job loss.

[@tonys9413]

A great discussion guys, more in the future!

[@61gg]

How much damage have they to their brand? There are college grads with debt that can’t get that compensation, and some will never buy anything from Detroit. And them to those that left after the bailouts.

[@2nlove408]

This is the most inclusive non-self serving discussion I have heard about the strike. I wonder what new cars we will see here from the Chinese companies in the next few years. Great information from John

[@PhilT993]

Sandy Munro also did an interesting video on this topic.

[@jeffos8724]

Great show. I've been watching John for 20+ yrs. Loved seeing the mashup.

[@viplav76]

In 5 years the demand will be to keep jobs. Things are getting beyond money, and more pn relevance. For the companies too..

[@alancall5113]

best contract ever It's about time the little guy got paid bak god bless the u a w👊💪

[@bigdougscommentary5719]

Tesla will just start adding robots.

[@snookmeister55]

Continue adding robots.

[@lesbendo6363]

I will see what happens after the contracts are ratified. See what Ford does in the future.

[@accountability2000]

Batteries Included: I usually enjoy your analyses, but I found this discussion really disappointing. Giving lip service in praising these workers for winning a hard-fought good contract while also blaming the workers for the failure of these three big auto companies is absurd. John is no friend of labor or working people. His statements on this issue are the same old tired response that has gone on since the beginning of labor history, which is to place the failure of businesses on working people. Unions/workers do not put companies out of business; corporate executives and their shortsighted MBA lackeys do.

[@kevin-n-darlenef301]

This will make Detroit stronger going forward.

[@danharold3087]

Give everyone a raise, rents, food, everything go up all around, fair or not. Nobody gains and the fixed income people fall further into poverty.

[@deandreyoung850]

888 a year not bad for a 25% raise when they offer 9%

[@williamhalleck5655]

What about the problem of the big 3 not being able to sell vehicles? The thing is, cars need to be priced well enough for people not to have to go to the bank and go in debt, for something they can't afford.

[@tmiller249]

The best thing they can do with the stagnant EV market is utilize space in existing plants until the time is right to grow. Now is not that time.

[@tmiller249]

Look at Stalantis transaction price average. I think they will struggle the most.

[@billkohl449]

Yes Shawn may have won the Battle but he helped the Auto industry dig their grave on the way to BK.

[@JackLemp-tm8fg]

How many labor hrs per car in teslas vs Ford GM Stellantis

[@snookmeister55]

Good point. Big three are now curtailing EV plans. ICE cannot reduce hours per vehicle while EV rapidly reduces hours per vehicle. ICE cost per hour just increased substantially for big 3.

[@johndonaldson5126]

UAW members will find disapointment when the impacts of higher wages leads to failure or at least a shrinking big 3. Already chalenged to meet the quality and price of Tesla and Chineese cars the labor cost will forever damage the bug 3.

[@82mattlopez]

$40/ hour at the end of the contract not counting cost of living adjustments. Hell even Kia right now in Georgia pays 30/ hour

[@BeckerGOP]

Will the window stickers start showing a separate line item of $900 for the UAW added cost?

[@rp9674]

No

[@TacticalMainframe]

John is the GOAT of Auto industry knowledge.

[@martman123456]

This enormous package only adds $1000 to the cost of the car? #1 - No, it doesn't because costs are never 100% passed to the consumer. #2 - Even if it does, that's 3% on a $30k car. That's a small price for giving U.S. auto workers a solid middle class living.

[@TJPavey]

Exactly. If you buy a new car every 10 years it would cost you less than $10 per month. Expand this. If all industries saw 25% increases in wages yet the cost of living only increased by 3% (maybe up to 10 for things like service industry) then EVERYONE is effectively at 10-15% richer. Increased wages help everyone except Wall Street investors and the other folks that earn the bulk of their money in the market. Even then if wages go up everywhere then no one is at a disadvantage and stocks shouldn’t take a hit yet they would see long term growth due to more disposable income. The short term quarterly growth mindset that billionaires label “the economy “ has nearly destroyed American middle class. Hopefully these recent strikes are the tip of the iceberg and we can fix things.

[@obsesivegamer]

Nice to hear from dominic and tom !

[@urbanstrencan]

Great top guest ❤❤

[@RichardFlentge]

Nice in depth podcast, two point labor cost at 8% ? a bit of smoke, it hides the labor cost in part supplier production, the Tesla model of stock options and stock ownership is key, UAW contract while reaping the benefits of revenue shares little of the risk. Put them all in the same boat, shareholders, management and labor with a mutual outcome goal! Might force all of them to equalize and behave.

[@HXCC]

It doesn’t make sense that the transplants have $15/hour labor cost advantage than UAW represented big 3 when UAW employee make $16.90/hour wage. John need to tell the truth.

[@sjupicudacuda898]

all they did was push up car prices.

[@robertpulliam9973]

The EV market is on life support, all the people who have to have the very first of everything new have bought their new toys, now the bread and butter buyers who buy the normal vehicles, not the rich kids toys are going to control buying.

[@robertpulliam9973]

The EV market is on life support, all the people who have to have the very first of everything new have bought their new toys, now the bread and butter buyers who buy the normal vehicles, not the rich kids toys are going to control buying.

[@Charlie-wg2uc]

John your full of crap . We gave a dollar an hour up a long time ago for medical. Plus they don’t have to raise prices they have already done that over the years even with out a raise . So explain that why do prices go up . Just because you report in the industry doesn’t make you an expert

[@mrhickman53]

The labor cost is much discussed but the labor hours per vehicle is rarely discussed. I don't see Tesla being bothered much by increasing direct labor rate, especially with Optimus coming online. My experience with UAW plants, now a few decades old, leads me to believe that union labor rules are antithical to how Tesla conducts their agile manufacturing. I think Tesla will pay whatever rate is necessary to not have union labor rules to come through the door.

[@lolo2556]

You realize better pay isn't the only thing a union offers right?

[@mrhickman53]

@@lolo2556 So, what do unions offer that does not reflect to the labor-hour cost of producing the vehicle?

[@lolo2556]

@@mrhickman53 im not to concerned about the "labor hour cost" because that's a metric that only matters to management. its a metric that is measuring the level of labor exploitation being carried on by the company. Labor doesn't really cost the company anything because labor produces all of the value the company creates. Furthermore unions provide the worker with representation. I just have my job saved yesterday by union steward because a supervisor tried to fire me and 4 other people without following proper procedures. Included with this representation is the grievence procedure which allows the union to hold management accountable. Because of the grievence procedure that supervisor who was not following proper procedure was suspended and moved to another plant.

[@mrhickman53]

@@lolo2556 You may not be concerned about labor cost but that cost impacts the consumer's ability to find sufficient value in the product to warrant purchase. I do not like the migration of wealth to the few, but individual companies cannot ignore the macro environment. My problem is that I view union management as a huge inertia that potentially prevents companies from being agile enough to meet disruptive market forces head-on. An example to watch may be VW post Herbert Diess. Labor, sitting on the BOD did not like Mr. Diess' view of the 21st century and had him booted out. While the sofware development organization he established has not performed well and the industry tries to hang that around Mr. Diess' neck, in reality I do not believe he survived long enough after the group's formation to have had a strong influence in its goals or performance. VW may posess more union jobs today than if Mr. Diess had remained, but at the cost of their EV sales not growing as desired and, as I can tell, no clear path of righting the ship. Now, any ideas on how we ensure a more equitable distribution of wealth?

[@rgeniec]

Tesla can sell legacy robots 🤖 to replace the UAW workers. 🇺🇸⚡️🤷🏻‍♂️✌️💪

[@rjward1775]

According to current job postings, Tesla still has stock options for new employees

[@cy77791]

That’s why he fought to get the battery plants work in the national contracts

[@krkope8277]

My comment from yesterday seems to have disappeared...

[@owenturnbull6424]

It's great that the union guys got an increase, I am sure it is deserved. But let's see how many union workers there are at the big 3 in five years down the line. These companies have no choice but to automate even more. As battery plants, well that is automated anyway. I see companies like Indra getting a lot more orders.

[@mebran1193]

Left class warfare out of the covnvo

[@golfish8589]

Tesla Berlin is unionized and workers get 6 weeks paid vacation and good benefits

[@4literv6]

Since when?

[@hankmoody7521]

No, it's not. But Germany has a labor law, which Tesla can't circumvent... Tesla is paying well below union salary average in Germany (e.g. -20-30% in assembly). What you mean, is a works council, which employees can create in every company with more than 20 employees. But this is different to the bargaining power of unions within industries, because Tesla has not committed to pay union wage rates in Germany.

[@foreverinteriors]

What did he call you John?

[@golfish8589]

How does tight labor market give the unions more leverage? I dont think it the big 3 could fire workers under strike. On Autoline after hours. It was reported that workers salaries would go from 5% to 6% of operational costs. And add 800-900$ to the cost of a vehicle. The raises come to a billion dollars a year. The last 2 years of large wage growth in the general market was missed by union workers lockedvinto contracts

[@TJPavey]

Because there are many unfilled jobs. When there is an effective worker shortage it gives the power to the worker. It’s supply and demand.

[@golfish8589]

@@TJPavey I dont think the big 3 has trouble finding assembly workers. There salarys are already pretty good for non skilled labor. And I dont know if the big 3 has the ability to fire or Lockout and replace union workers. The;y can lock out union workers but i dont know if they can replace. And it would be impossible to run an asembly line with all new workers. Anyways, It looks like all 3 union contracts have been accepted. And will be voted on soon. And It looks like the Union leader was correct and the big 3 were underpaying their workers

[@j4k3br4k3]

The big 3 dont stand a chance against China now... BYD, NIO, XPENG will be 10 years ahead

[@TJPavey]

They are 10 years ahead because the American love affair with the Saudis/oil industry. Lobbyists have actively fought subsidies to electrifying America while giving countless handouts to fossil fuel companies. As a result American auto makers drug their feet on electric vehicles. China on the other hand has been pushing electric vehicles. They just said that at worst, American cars will have 10% of the cost be labor. Chinese cars have a 30% tariff here. How can you claim that these new wages are the reason America is behind ?

[@TJPavey]

So my back of the napkin math. Increasing worker wages increases cost of a car by 2% or less. In other industries that are more wage sensitive maybe it’s 10%. So if we increased everyone’s wages 25% but only increased the cost of goods and services by 2-10% this is a huge net positive for 99% of America. This would mean more money into SS. More money in private retirements. More consumerism, which drives up profits and leads to job expansions. Etc.. The only people that suffer from a wage increase are Wall Street investors that get hurt by bottom line affecting quarterly growth. It’s amazing that somehow such a small group of billionaires has pulled the wool over the eyes of such a large number of Americans that see unions and collective bargaining as something evil.

[@frankbromley260garage]

i take john's opinion with a grain of salt ! he is a corporate guy he has never had the people that make the profits on his show only the people that enjoy them and so called auto experts that have lost touch with reality.

[@phillyphil1513]

re: "he is a corporate guy he has never had the people that make the profits on his show only the people that enjoy them and so called auto experts that have lost touch with reality."

[@mickcarroll1274]

In all of my years of working at GM, every contract resulted in loss of jobs. And every contract the UAW said we won this and that but never devulged what was written in between the lines. The fine print was learned later, when management had more control with stricter work rules and again, loss of jobs.

[@TylerHilliard]

Sounds to me like a lot of anti-union propaganda. Ie. scare of labor cost without going into what % of the vehicle is labor cost. No mention of what these wages are vs what they used to be or compared to COL. No mention of stagnation prior to this deal.

[@Gargamel-n-Rudmilla]

Without question. UAW has won the battle but lost the war for the Big 3 and thus UAW members. Shortsited idiots, I even blame the workers.

[@JoeOutdoors]

What about the management salaries effect on the profit margin? What about the bone us money effect on the bottom line? What about the dividends effect on the bottom line? How do all thoughs fit into the price of the new car compared to the UAW salaries effect on the cost?