US senators urge car companies to stay neutral in union organising

Car executives have been accused of 'union-busting and intimidation'

05 January 2024 - 09:34
By Reuters
US Joe President Biden speaks to UAW members in Belvidere, Illinois.
Image: Reuters US Joe President Biden speaks to UAW members in Belvidere, Illinois.

A group of 33 senators on Thursday urged Tesla and 12 other carmakers to remain neutral in efforts by the United Auto Workers (UAW) to organise US car plants.

The letter went to Tesla CEO Elon Musk and top executives at Toyota, Volkswagen, Hyundai, Rivian, Mercedes-Benz, Honda, Nissan, BMW and others, urging them to pledge not to interfere in organising activities.

“We believe a neutrality agreement is the minimum standard manufacturers should meet in respecting workers’ rights, especially as companies receive and benefit from federal funds related to the electric vehicle transition,” the letter, first reported by Reuters, said.

The letter raised concerns about reports that management of numerous carmakers acted illegally to block unionisation efforts. It also cited National Labour Relations Board findings that Tesla employed “multiple illegal tactics aimed at stopping organising efforts including online harassment, employee interrogations and retaliatory firings”.

VW dismissed claims of union-busting and intimidation by the German carmaker. It said claims VW destroyed pro-union material in a breakroom at the company's Tennessee plant were untrue and the room had simply been cleaned by maintenance staff.

“Labour representation is part of our company's culture; half of our global supervisory board members are labour representatives,” VW said. “We respect our workers' right to decide the question of union representation.”

In echoing the opinion of others carmakers, Hyundai said it was up to its workers whether they join a union, but those workers benefit from dealing with the company directly.

“The UAW’s recent accusations regarding Hyundai Motor Manufacturing Alabama are not accurate and we remain in compliance with the rules of the National Labour Relations Board,” the South Korean carmaker said. “Hyundai provides excellent wages and benefits.”

Toyota, Subaru and Rivian declined to comment. The other carmakers did not respond to requests for comment.

In late November, the UAW said it was launching a first of its kind push to publicly organise the entire non-union car sector in the US after winning record new contracts with the Detroit Three carmakers.

The Detroit-based UAW announced simultaneous campaigns by workers at 13 non-union carmakers to join the union. Those employ nearly 150,000 workers at their US assembly plants, about the same number as those employed by the Detroit Three companies that signed new labour agreements with the UAW.

“Every autoworker in this country deserves their fair share of the industry's record profits,” UAW president Shawn Fain said. “We applaud these US senators for standing with workers who are standing up for economic justice on the job. It’s time for the auto companies to stop breaking the law.”

The UAW's deals with General Motors, Ford Motor and Stellantis included an immediate 11% pay hike and 25% increase in base wages to 2028, a reduction in time needed to reach top pay to three years from eight and is boosting the pay of temporary workers by 150% and making them permanent.

Many non-union carmakers have responded by hiking pay for US factory workers.

The UAW has for decades unsuccessfully sought to organise factories operated by foreign carmakers. Efforts to organise Nissan plants in Mississippi and Tennessee failed by wide margins and two attempts to organise VW's plant in Chattanooga, Tennessee, narrowly failed.

Last month, the UAW said 30% of workers at VW's Tennessee plant signed union authorisation cards.