9/28/2023

According to a source, the UAW has various leaders at different levels all over the country.

In addition to the national negotiations going on currently, the various UAW leaders also negotiate various deals with within plants and customers.

Negotiations are constant

The book on Fain … he is very knowledgeable, but he’s not a deal maker.

His tendency is to dig his heels in and scorch the earth until he gets what he wants.

Deals fall through because is not pliable.

And when deals fall through, nobody wins.


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GM’s CEO, Mary Barra’s comments yesterday, “It’s clear that there is no real intent to get to an agreement. Their leaked text messages from last week stated their plan to keep us ‘wounded for months’ and cause recurring reputations damage and operational chaos”. Further, “it is clear Shawn Fain wants to make history for himself, but it can’t be to the detriment of our represented team members and the industry”.

Ford CEO Jim Farley fired back at the union also, blaming the UAW for holding a deal “hostage” over battery plants and accusing Fain of trying to create “industrial chaos.” His claim is that Ford’s offer for the UAW puts UAW workers in the 70th percentile of all Americans, which includes both white collar and factory worker.

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Based on where the negotiations are going currently with the UAW, there are (2) probable outcomes:

1. The UAW members put pressure on Fain to take what has been offered, they need to get back to work, make the deal and live to fight more another day. The UAW members who are on strike have built lifestyles around their income and now they are struggling, and the pain will only deepen for them as the strike continues.

2. The carmakers capitulate because daily profit is being lost and they take a deal with the workers that absolutely cripples them in 5 years or so (circa 1980’s).

In either of these scenarios, the lasting damage from these negotiations will forever change the way carmakers and the UAW work together.

Production will move to the south US and to Mexico.

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It’s hard to argue with Fain’s comments about billionaires and CEO compensation. And also how workers value has diminished over time.

The diminishing middle class in America to a two-tiered class is not a good trend for society.

He likes to reference, how things used to be …

But just about everything in the Automotive industry has changed in the last 80-100 years.

Liquid lunches.

Electrification.

Multiple competitors, not 3

Automation, technology.

Global Supply Chain.

Electronics.

Sure, it’s nice to think of the past.

But it’s time for Fain to realize that it’s 2023, putting workers back to where they are in the 70th percentile is a win.

He needs to make a deal that works.

Not what it was many years ago … because it’s not …

56-80, sunshine.

Make it a great day, everyone!

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