Effective and Personal Management Solutions

Managing Director Insights

Some Inside Info – UAW Strike


Here’s what I have heard from a source.

**The Detroit 3 looks at all of the $ allocated to the UAW as a ‘lump sum’ / cost.

**There are a variety of ways that $ can be given to the UAW members (wage, retirement, PTO, etc.) … but from an analysis perspective, it all rolls into a lump sum.

**During the last UAW negotiation, Ford increased the amount of total $ given to UAW members by $1.9B per the agreement (largest ever increase up until that point).

**This time around, Ford’s incremental total offering to the UAW is $4B-6B per the agreement and GMs incremental offering is in the $3B- $5B range … these are the offers that Fain has so vehemently turned down … offers that would put the UAW workers in the 75th percentile for total benefits and compensation among all professions, white collar and blue collar

Car Maker Financial Challenges:

1. The investments in the move to electrification are huge … and there is uncertainty still about how these vehicles will go in the market.

2. If energy prices increase, then there is also a real possibility that truck and SUV sales will decrease … these products are their cash cows.

3. There is also the real threat of cars shipping into the USA from China and overseas car makers at much cheaper prices in the days ahead … the G2 is that these cars are very good and high quality … this is on the near horizon (90%+ American consumers by the way … really don’t care where the product comes from … they just want the best value at the best price).

4. Hydrogen – Many industry experts believe that hydrogen will make up at least 50% of the market by the year 2050 (more on this later, but the engines will be ICE) … car makers have to continually invest to stay viable for the future … billions upon billions …

These are the reasons that the car makers are absolutely at wits end with Fain.

Anything additional that is offered takes them into a dangerous zone should things go sideways in the market … which usually happens … and / or would prevent them from investing as needed to stay viable for the future.

Fain’s approach of leading with anger … fear … ultimatum … aggression … chaos … strong man rhetoric …

Rallies the base, emotionally.

Creates an incredibly strong following.

Makes headlines.

But when this style is absent of logic, reason, empathy … carnage and destruction is always the result.

Just blow it all up.

And the ripple effect impacts levels, 2, 3, 4, and 5 beyond just the direct #1 target.

Turn on the news and look around the world … you’ll see it in plain sight … just in other forms and walks of life.

Adversity is endless.

More opportunity for adjustment and adaption for survival.

It’s not easy … but no worthy challenge to overcome ever is … right?

Getting after it over here at SCN – Search Consulting Network and trust you are as well!

Make it a great day!


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...

Read More

The importance of truly listening, and understanding your wants and needs, cannot be overstated.