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It’s Electric …


That’s how the ‘Electric Boogie’ song by Marcia Griffiths starts out …

And then everyone at the wedding reception, files in rows in front of the DJ, and gets moving with the Electric Slide Dance …

Well … it turns out an Electric Slide as predicted was the crux of the UAW negotiations with the Detroit automakers.

Per Shawn Fain, last Friday GM has slid their position, to make future battery parts of the UAW National Agreement.

We haven’t heard GM’s confirmation, but that isn’t surprising as they’ve been overall quiet, outside of a few barbs from Mary Barra directed at Shawn Fain.

The validation here is Fain’s announcement last Friday, no new plants to go on strike.

OK … the biggest hurdle from the UAW’s perspective, has been overcome.

* The Asterisk here of course is future battery and electric vehicle plants in the USA.

Typically, the way these negotiations go, the other carmakers will fall in place with similar agreements.

We’ll see if Ford and Stellantis fall in line.

Stellantis corporate world headquarters are based in the Netherlands … perhaps wondering why they are the only foreign lead company getting walloped like this.

Ford’s Blue Oval City in TN (in a JV with SK) is over a year into construction and expected to be up and running in 2025. It’s anticipated that this will be the biggest EV campus, and EV manufacturing facility within the entire Ford organization.

Will they go through with completion here now, if the UAW is under the master agreement for this location? There original plan was not to have union workers at this facility.

There is also a Ford battery plant in Marshall, MI that is under construction currently … it has been put on hold until the UAW negotiations are finalized.

Per my sources at the OEMs, we are 90% ‘there’ to getting the negotiations finalized. Maybe another week or 2?

Progress has been made behind closed doors … and Fain certainly isn’t speaking to these moves in his PR negotiation update videos.

It’s impossible to completely call the winner and loser of the negotiations here, without insight of having a seat at the table.

But it sure seems like Fain is winning and it appears to not even be close.

He’s owned the airwaves, and his union has held strong.

And he seemingly is winning concessions that the Detroit 3 said were impossible.

The Detroit 3 were ill prepared going into this negotiation process … 6 months ago … a year ago …. or more is where the battle was lost.

Now it seems like they are begging for scraps from Fain, so that the industry can go back to work.

The big takeaway for anyone who is ever involved in negotiations … planning is paramount … understand all details …

We’re always excited to get after it here at SCN – Search Consulting Network … especially Monday mornings.

Right everyone?

38-53, clouds.

Make it a great Monday, everyone!


Jim Guerrera

Author Info

Jim Guerrera

Jim Guerrera, Managing Director, founded SCN in 2000. Jim is primarily responsible for the development of the leaders at SCN, strategic planning, the hiring and development of company associates, culture leadership, core value leadership, sales le...

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