The UAW and the Detroit Three automakers are in a standoff over wages and union representation at future electric vehicle battery plants.
plant workers, and to raise wages at their respective joint-venture battery plants to match assembly workers' pay.
In effect, Fain is demanding that workers get a greater share of the $35 per kilowatt-hour in U.S. government battery cell manufacturing subsidies the plants hope to reap from U.S.The flow of cash from the IRA could be substantial. For example, 1,300 workers at GM's Ultium LLC battery plant in Northeast Ohio could some day produce 35 gigawatt hours of batteries annually, or 13 kilowatt-hours for each hour in a worker's 40-hour week.
GM told investors last year that U.S. subsidies could add $3,500 to $5,500 per vehicle in pre-tax profit for each EV it sold.Automakers have said their labor costs must be competitive with Tesla and other battery manufacturers whose U.S. operations will get the same federal subsidies, but have more flexible work rules and pay less than the $32 an hour top wage earned by UAW workers in Detroit Three factories.
The company would use data on the labor costs at competing battery makers, including Tesla, as benchmarks to determine what wages and working conditions should be at Ultium factories to assure they are producing battery cells at competitive costs, the sources said.
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2023 Layoff Tracker: Ford Cuts 1,200 More Jobs As UAW Strike Drags OnI am a Boston-based reporter. Before joining Forbes, I covered the environment, local government and the arts for a small-town newspaper on Nantucket. My previous work includes NPR, WBUR, WCAI and Nantucket Today. I am a graduate of the University of Massachusetts, Amherst, with a degree in political science. Email me at bbushardforbes.
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