Game-Changing GM Concession Fuels EV Advocates during Auto Strike

In a significant win for renewable energy advocates, General Motors (GM) has recently reached an agreement with the United Auto Workers (UAW) union regarding electric vehicles (EVs). This development challenges the notion that the transition to EVs is fundamentally at odds with the interests of labor.

The new deal between GM and the UAW, which includes placing EV battery plants under the master agreement, signifies a crucial step in achieving a “just transition” to EV manufacturing. UAW President Shawn Fain has asserted that this transition should benefit both workers and the environment.

Following GM’s concession, Fain stated, “We’ve been told the EV future must be a race to the bottom. And now we’ve called their bluff.” This move counters the historical separation and weakening of workers in the EV sector, as Saul Levin, legislative and political director at the Green New Deal Network, pointed out: “This really is proof in a real contract that this is not the case.”

One of the concerns raised by workers is that automakers are using the transition to undermine wages, a factor that contributed to the ongoing strike by the UAW. Tesla, the largest US EV manufacturer, is also a nonunion company. In negotiations with “Big 3” automakers GM, Ford, and Stellantis, Fain has emphasized the union’s support for transitioning to EVs while demanding safeguards for union jobs throughout the process.

The agreement with GM is a significant milestone, although the UAW has yet to secure similar agreements from Ford and Stellantis. Nonetheless, Levin stated that this concession by GM makes it increasingly difficult for the other two automakers to argue against such agreements.

Mijin Cha, an assistant professor at the University of California, Santa Cruz, highlighted the importance of a strong unionized workforce in accelerating the EV transition. She stated, “[F]ighting for EV battery manufacturing to be union is really important to show that green jobs can be good jobs and that there is no conflict between addressing climate change and supporting workers.”

Stellantis declined to comment on whether similar agreements were being discussed with the UAW, while Ford mentioned that they remain open to working with the UAW but stressed the need for competitive and sustainable operations for multi-billion-dollar investments.

Republican lawmakers and presidential candidates have often sought to exploit the division between union workers and EV advocates. Former President Trump, a leading contender for the GOP presidential nomination, made use of this issue while campaigning in the swing state of Michigan, speaking against electric cars at a nonunion plant. Ohio Senator J.D. Vance (R) has also introduced legislation to end tax credits for EVs, expressing concerns about the “premature transition” to electric vehicles.

Jason Walsh, executive director for the BlueGreen Alliance, noted that the Trump camp sees an opportunity to appeal to historically Democratic voting blocs by stoking fears of lost automaker jobs, similar to how they tapped into fears about coal jobs in 2016. However, Fain’s vocal criticism of Trump and those who employ anti-EV rhetoric has added an additional dimension to this debate.

Dave Foster, a distinguished associate at the Energy Futures Initiative, emphasized that the new agreement effectively counters arguments that claim the transition to EVs and protecting union jobs are mutually exclusive. Research conducted by Foster’s team found that without worker protections, the EV transition could result in job losses, but with such protections in place, it could create up to 50,000 jobs in manufacturing hubs like Michigan, Indiana, and Ohio.

Foster stated that these findings highlight the importance of implementing the right industrial policies to support the energy transition and rebuild the US manufacturing base. By addressing factors such as worker protections and policies like those in the Inflation Reduction Act, the auto industry can avoid facing a decline similar to the one it experienced in the late 1970s or the domestic steel industry faced in the 1980s.

While the GM concession is significant, there are other demands being made by the UAW. According to Walsh, these demands fall into three main categories: “Good, safe jobs that pay workers their fair share, the elimination of a tier system [for worker compensation], and a union-built EV future.” He believes negotiations are working to address all three of these key issues.

Dave Foster highlights the importance of determining whether foreign subsidiaries building battery plants will offer comparable wages to those negotiated by the UAW. Ensuring a level playing field within the integrated auto industry is crucial.

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