Listen to “AAH #668 – Why Does Shawn Fain Want to Damage the Detroit Automakers?” on Spreaker.
– The Union says ‘no’ to historic concessions
– What’s the tipping point for a total cave in by car companies?
– Can D3 compete with significant labor cost disadvantage?
PANEL:
Robert Chiaravalli, President, Strategic Labor & Human Resources
Keith Naughton, Reporter, Bloomberg
Paul Eisenstein, Editor, Headlight.News
Gary Vasilash, onAutomotive
John McElroy, Autoline.tv
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Not sure if you are aware, Berny Sanders was with UAW multiple times in Detroit plotting this strike with Shawn. Berny wants Shawn to be the leader of the new socialist movement to fight with US capitalism!
If Shawn Fain was to put the current offer to a vote, the union members would vote it down. Not because it not a great offer, but because Mr. Fain has raised the expectations so high that the members are expecting most of what was asked for from the beginning.
The Big 3 will NOT be able to compete with all their competitors who have much lower labor costs. The UAW is putting the Big 3 on the same road that led them into bankruptcy in 2008 – 2009. Then they won’t have any jobs!
Dangerous game of chicken Shawn Fain is playing here. If he wins, the Detroit 3 may ultimately lose.
Shawn Fain thinks he is some big hero, when in actuality he is a fool that will put most of these people out of a job. The Big 3 will eventually raise the cost so high on their vehicles that no one will buy them anymore and will start buying Toyota, Nissan…etc. When they can no longer sell these cars at the high prices, they will start building them out of country in order to compete which will put all these autoworkers out of a job. Either this will happen or the big 3 will go bankrupt. In the meantime Shawn has put 1000s and 1000s of people out of a job already. The suppliers to the Big 3 have all but laid off 90% of their workforce. All these people depend on the money they make from these jobs and without their jobs they have started looking elsewhere for their income. Many will not return to the industry that was already struggling to find enough people to keep up with demands. This strike will CRIPPLE the industry and many companies may not recover. Ford has offered over 39 dollars per hour for a tier 1 worker which is insanely good money for what they do,.. and this was rejected?? This man will kill the industry.
In 10 years, this industry will look fundamentally different. And noone’s betting on the Detroit 2. Stellantis may still be around, but what its NA footprint will look like is anyone’s guess.
It’s fundamentally about Chinese EV manufacturers going global very quickly as in right now, product, and addiction to the easy profits from a select few vehicles that have no traction at all globally.
This new contract is great news for suppliers as this will force more out-sourcing to non-union suppliers. Plus, they will likely get a decent bump in pay due to the union contract.
As long as suppliers can weather the storm of however long this strike lasts it should pay off in the end.