Transcript of a conversation (clip) between Chris Collins and Sam about how supply-chain disruptions and the shift to electric vehicles affect auto workers and unions (mainly the UAW). Topics include plant shutdown layoffs and replacement income coverage, concerns over companies locating EV/battery jobs in Mexico, wage differences between traditional auto and battery plants, union organizing challenges (Amazon vote, VW Chattanooga, UAW corruption scandal), political strategies (EV tax-credit restrictions), and competitive pressures on Detroit automakers versus foreign-owned plants.
Chapters
How will this affect the unions that you know, and the workers on the front lines in the factories, how is it going to affect them?
Well, obviously, you know, when a plant goes down, those, those workers are on, on layoff. But the uaw, the United Auto Workers union has contracts that allow for, you know, a lot of the workers get pretty close to, I think like 90% coverage between unemployment and what they get from so that they won't suffer too much on this. I think one of their big concerns right now that they're focused on, I don't know if you've seen these stories, Chris, is just the talk of like GM just had the announcement about investing a billion in making EVs in Mexico. And the UAW is very focused on, it wants those jobs in the US it wants the battery plants that are in the US to be union represented. The, that's kind of their big focus right now.
So how far do they need to come in order for it to make sense? Like we can put pressure on the manufacturers, right, as consumers, as the government, but how far does do they need to come in order for it to not make sense in Mexico or somewhere else?
I mean, they're very, you know, obviously these companies, they know what they make per vehicle and they, they use Mexico for a reason. Now the union doesn't like those reasons. They want the jobs to be in the US and they want them to be sort of these full paying union jobs. The problem then becomes things like the battery plants, which are gonna only grow in importance. Typically those pay far less. Whereas the union dues, I mean the union rates might be more like in the 25 to $30 an hour range. The battery plants might be more in the 10 to $15 an hour range. So, so, you know, far less. But I think the union's thinking is, well, first we got to get these jobs union represented and then we'll worry about, you know, trying to raise their standard of pay as we go.
Do you have a sense in the marketplace? And I know it's fresh in a lot of people's minds with Amazon kind of winning that vote in the south, was it in Mississippi? What is the general consensus.
You know, for unions? Because a lot of people that I know that work in a union job feel like the union's just another layer of money that they're not getting oftentimes. And it doesn't really, you know, show them a huge benefit. But if you look back in time, there was a time where unions were very relevant and very effective at normalizing and Protecting workers. Are we at a time where that, that needs to be, you know, adjusted and rethought and maybe the way that we did it 60 years ago just isn't working for, you know, helping companies like Ford and GM be competitive against a Tesla. Is there a way to, to accomplish both?
Yeah, I don't know. It's interesting because you know, back then history shows that the companies maybe took advantage of workers more so it was easier for the unions to justify why they were necessary. And to your point, it becomes a much harder argument when say a Toyota or Honda is in essence paying almost the same as the Detroit three automakers. So then any anti union supporters can say, well why, why do you want to bring the union in? They're only going to take away some of that money from you. I've talked with labor attorneys who say unions tend to do much better organizing plants when they are making arguments based on like safety and things like that, as opposed to if you're making an argument based on money, they tend to lose. Those organization tries more often. But I think that that was a big blow for the union movement to lose the Amazon push. I think that was in Georgia as I recall. And so it's going to be interesting to see how this goes moving forward. The unions feel they maybe have an ally with President Joe Biden, what he does to actually support them. For example, I know the UAW is making sounds with some of its political allies to push for making the EV tax credits only applicable to EVs that are built in the United States. So you know, that would add a layer of pressure. Now whether they can pull that off or not in a Senate that's 50, 50, I think it's gonna be hard to do. But I mean that's the kind of thinking that they're making right now.
There's two things that stick out to me in that conversation is one is when we're in a climate where the population of labor, you know, people that want to be laborers is shrinking and so they have an advantage and you don't necessarily need a union because the workers have an advantage and they have a choice. Right? If you're willing to work, you can be a plumber and make $150,000 a year because there just aren't people that want to be plumbers or technicians. And you know, so it's a weird marketplace where the worker has more leverage because the population and the baby boomers retiring and that sort of thing. But the other thing that sticks with me is, you know, up Where I grew up in Washington, Amazon opens a warehouse up there in Belfair, Washington, and they're hiring a couple thousand people and they're redoing the streets and they're, they're investing all this money in the city and the infrastructure and people are elated and they love Amazon and they love that they can, you know, start off at 15 and work their way up and make 25. And the general tone there is very positive. But then when you see what, what is said on the news about working for Amazon, it's like, you know, they're starving people, putting them in cages and feeding them once a week. And it's, it's just, it's, it's so hard to understand where the truth is in that. But the thing that I revert to, I guess, and this would be what I would, what I'd love for you to comment on is I believe that workers have a vote in that because they're in demand.
Yeah, yeah. I mean, but also, and I think what played a role, say in the Amazon vote was if a company subtly or not subtly says, you know, well, you know, we can move this plant somewhere else. I mean, a warehouse, for instance, would be definitely more easy to move than an auto assembly plant that can, that can hold sway with. I'm sure that affects, I mean, not all of them, but it's certainly going to affect a portion of voters that are going to say, listen, I like having my job if I'm not going to vote for the union.
Yeah. But it does affect the unions. And if they're not growing and the general perception isn't that it's a positive thing for workers, it does affect them when they go to negotiate with GM and Ford later on. Right?
Yes. I mean, it doesn't help the union if they have continually failed to organize the foreign owned auto plants in the U.S. you know, they came super close a couple years ago to organizing VW's plant in Chattanooga.
I think they would have maybe had a good shot at being successful if they hadn't had their corruption scandal within the union because they almost won with the corruption scandal clouding the whole issue. If that corruption scandal hadn't been around, they probably would have won that. But that just makes it almost impossible, not impossible. It makes it really hard for the union to sort of successfully negotiate with the Detroit three when the Detroit three is saying, listen guys, I can't give you X if Toyota and VW over there are paying that much less than.
X. Yeah, yeah, it's the, it's being competitive in the marketplace. And a lot of times, Ford and GM carry a bigger burden when it comes to, you know, moving fast, changing fast and being competitive price wise. Right?
Yeah. Yeah.
Thanks so much for watching this clip of Service Driving Revolution. We're uploading new stuff every day, so make sure you subscribe and click the bell icon so you don't miss out. If you have a question you'd like us to answer on the show, call 8333 Ask SDR and we'll answer your question on the show. That's 8333 Ask SDR. For special deals on our books and training, head over to offers.chriscollinsinc.com now that's offers.chriscollinsInc.com I'm Chris Collins, and I'll see you in the next video. Sam.
