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Ford Warns of Profit Plunge Thanks to Trump Tariffs
Ford's tariff troubles are notable because it "manufactures the most cars in the U.S. of any automaker," and yet is still "being squeezed by new trade barriers imposed by the White House," reported Bloomberg.
Jul 30, 2025
American automaker Ford on Wednesday followed in the steps of General Motors in warning that U.S. President Donald Trump's tariffs are going to take a hammer to its bottom line.
As reported by Bloomberg, Ford said that its profit could plunge by up to 36% this year as it expects to take a $2 billion hit from the president's tariffs on key inputs such as steel and aluminum, as well as taxes on car components manufactured in Canada and Mexico. News of Ford's guidance sent its stock shares diving by more than 2% in after-hours trading on Wednesday.
Bloomberg wrote that Ford's tariff troubles are notable because it "manufactures the most cars in the U.S. of any automaker," and yet is still "being squeezed by new trade barriers imposed by the White House."
Ford CFO Sherry House informed reporters during the company's quarterly earnings call that the White House was aware of the troubles the tariffs are causing U.S. automakers and she said that it "is working with us to get this right."
General Motors earlier this month also cited the Trump tariffs as a major reason why its profits fell by $3 billion the previous quarter. Making matters worse, GM said that the impact of the tariffs would be even more significant in the coming quarter when its profits could tumble by as much as $5 billion.
GM's warning came shortly after Jeep manufacturer Stellantis projected that the Trump tariffs would directly lead to $350 million in losses in the first half of 2025.
Trump made raising tariffs on foreign products a key plank of his 2024 election campaign despite the fact that he also ran on lowering inflation, and tariffs historically have led to higher, rather than lower, prices.
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Manufacturing Activity Sinks 'Sharply' as GM Blames Trump Tariffs for Profit Drop
Experts had expected a key manufacturing index number to tick upward, which makes the massive drop in July a significant and unpleasant surprise.
Jul 22, 2025
A key manufacturing activity indicator unexpectedly plunged over the last month amid warnings from American automobile giant General Motors that U.S. President Donald Trump's tariffs are swallowing its profits.
The Wall Street Journal reports that the Fifth District Survey of Manufacturing Activity's index "sank sharply" in July and fell to -20, which was a drop from the -8 number posted by the index in June. Experts surveyed by the Journal had actually expected the index number to tick upward to -6, which makes the massive drop in July a significant and unpleasant surprise.
The index is a survey of more than five dozen manufacturing firms located in the mid-Atlantic region of the United States that asks them to report activities including shipments, new orders, and employment. A monthly number below zero indicates that activity in these realms has shrunk rather than grown over the last month, and the Journal notes that the index has been registering negative numbers for five months straight.
And the month-over-month dive in manufacturing activity isn't the only signal of trouble ahead for domestic manufacturing. General Motors revealed on Tuesday that its profits took a significant dent in the past quarter thanks in part to the Trump tariffs on vital components such as steel.
In all, GM's core profits fell by $3 billion on the quarter and it projected that its third-quarter profits could drop by as much as $5 billion as more tariffs take effect. Although GM is expanding some of its manufacturing in the U.S. to mitigate some of the impact of Trump's tariffs, that likely can only go so far when big tariffs are still being levied on the imported raw materials that the company needs to build cars.
GM's warning about tariffs comes just a day after Jeep manufacturer Stellantis projected that the Trump tariffs would directly lead to $350 million in losses in the first half of 2025.
Trump made raising tariffs on foreign products a key plank of his 2024 election campaign despite the fact that he also ran on lowering inflation, as tariffs historically have led to higher, rather than lower, prices.
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UAW Touts Stellantis Vow to Reopen Belvidere Plant as Win for Workers
"The future of Illinois manufacturing depends on the power of our workforce," said Sen. Tammy Duckworth (D-Ill.)
Jan 23, 2025
The automaker Stellantis announced Wednesday that it will build the next generation Dodge Durango at its Detroit Assembly Complex and will reopen the Belvidere Assembly Plant in Illinois—two issues that the United Auto Workers union said the firm had agreed to in a 2023 union contract, but then had tried to walk back.
According to the announcement, the reopening of the Belvidere plant will return some 1,500 UAW-represented employees back to work there, and the plant will also be used to produce a new mid-sized pick up truck.
Democratic lawmakers and the UAW leadership cheered the development. In a letter released Wednesday, UAW president Shawn Fain and UAW Stellantis Department director Kevin Gotinsky wrote that the "victory is a testament to workers standing together."
On X, Sen. Tammy Duckworth (D-Ill.) wrote: "The future of Illinois manufacturing depends on the power of our workforce. Proud to see Stellantis honor their historic deal with UAW—bringing 1,500+ jobs back to their Belvidere Assembly Plant. Incredible win for Illinois." The AFL-CIO posted on X, cheering the development, as did Sen. Gary Peters (D-Mich.) and Rep. Debbie Dingell (D-Mich.).
The United Auto Workers represents unionized workers at Stellantis (formerly Chrysler), as well as General Motors and Ford. UAW-represented workers ratified a contract with the three automakers, collectively known as "the Big Three," that yielded worker wage gains in 2023.
According to the union, Stellantis agreed in the 2023 contract to reopen the Belvidere plant and to manufacture the next generation Dodge Durango in Detroit, but the company's old leadership had failed to uphold those commitments.
Former CEO Carlos Tavares, who spearheaded aggressive targets for sales and cost cuts and tangled with both the board and the union, according to Reuters, resigned in December. The letter from Fain and Gotinsky credited the union members with his exit.
"Thank you to the thousands of members and leaders who rallied, marched, filed grievances, and talked to coworkers. Your solidarity forced Carlos Tavares out as CEO of this company, and it's been a game-changer. Since Antonio Filosa has taken over as North American COO at Stellantis, we have been meeting with their team, and the difference is clear," according to the letter from Fain and Gotinsky.
The union had filed charges with the National Labor Relations Board accusing the automaker of unlawfully refusing to release information about plans to move Dodge Durango production from a Detroit factory to one outside of the United States, and also filed grievances over delays in reopening the plant in Belvidere, according to The Associated Press. Union members had threatened to strike over the issue of the Belvidere plant.
In October 2024, members of the Senate and the House of Representatives sent two separate letters to Stellantis leadership urging them to keep the company's commitments.
On Wednesday, Stellantis "also committed to a significant investment in Kokomo, announcing plans to build Phase II of the GME-T4 EVO engine beginning in 2026, reversing plans to move work out of this country. There will be no change to existing GME-T4 EVO production at the Dundee Engine Plant. Finally, the company committed to increased component production at the Toledo Machining Plant," according to a press statement from UAW.
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Citing Glut of Stock Buybacks, US Lawmakers Demand Stellantis Uphold Contract With UAW
"We believe that if Stellantis can afford to spend over $8 billion this year on stock buybacks and dividends, it can live up to the contractual commitments it made to the UAW."
Oct 24, 2024
In what the United Auto Workers hailed as "a powerful show of solidarity," scores of U.S. lawmakers on Thursday sent letters to "Big Three" automaker Stellantis and its CEO, Carlos Tavares, urging them to honor their contractual obligation to their employees, protect American jobs, and stop making excuses amid record profits and multibillion-dollar stock buybacks and dividends.
"We are writing to express our growing concerns about the failure of Stellantis, under your leadership, to honor the commitments it made to the United Auto Workers (UAW) in last year's collective bargaining agreement," says one letter led by Sens. Bernie Sanders (I-Vt.), Gary Peters (D-Mich.), Dick Durbin (D-Ill.), Debbie Stabenow (D-Mich.), and Tammy Duckworth (D-Ill.) and signed by 18 of their Democratic colleagues.
"We urge Stellantis not to renege on the promises it made to American autoworkers and to provide details on the timelines for these investments," the senators wrote.
Meanwhile, 56 members of the Congressional Labor Caucus led by Reps. Debbie Dingell (D-Mich.), Mark Pocan (D-Wis.), and Donald Norcross (D-N.J.) sent a separate letter, this one to Stellantis' board of directors, calling on Chrysler's parent company to "follow through on promises to workers to invest in its domestic workforce."
"Given the significant governmental financial support for Stellantis over the years, we have become alarmed by a steady stream of reports indicating your plans to lay off auto workers and move production out of the United States, and that you are failing to honor contractual commitments that Stellantis made as part of the 2023 national collective bargaining agreement," the letter states.
Last November, UAW workers at the Big Three—GM, Ford, and Stellantis—ended a six-week "stand-up strike" and signed new contracts with better pay, benefits, and working conditions. Stellantis committed to making nearly $19 billion in new domestic investments, reopening its "indefinitely idled" Belvidere, Illinois plant, continue manufacturing the Dodge Durango SUV in Detroit through 2025, and build the next-generation Durango in the city starting in 2026, among other promises.
However, according to the senators' letter:
Stellantis is now delaying planned investments to reopen and expand the Belvidere assembly plant, leaving behind thousands of American workers who built the company into the auto giant it is today. We are also concerned with reporting that Stellantis is planning to move production of the next-generation Dodge Durango out of the United States, after previously announcing layoffs that threaten the economic security and well-being of thousands of autoworkers.
Moreover, Stellantis has stated publicly that it plans to source 80% of supply from "low-cost countries" like Mexico. By your own admission, Stellantis' growth plan hinges on shifting "industrial production into cost-competitive countries" like Mexico, where workers are making substandard wages. These actions violate the obligations Stellantis made to the UAW.
"Taxpayers are currently funding consumer incentives for several Stellantis vehicles and Stellantis is slated to receive $585 million under the Domestic Manufacturing Conversion Grant Program," the House lawmakers noted in their letter. "Under this program, Stellantis is on track to pocket $335 million to reopen the Belvidere Assembly plant in Belvidere, Illinois. As stewards of taxpayer funding, we have a responsibility to ensure these investments benefit the public interest."
"We hope it is clear to you that the American people will not tolerate taxpayer subsidies for a company that is cutting production and slashing jobs—all the while it increases executive compensation, dividends to shareholders, and stock buybacks," the letter adds.
The senators noted that "this year, Stellantis has spent over $8 billion on stock buybacks and dividends to benefit its wealthy executives and stockholders, and that "last year, while blue-collar auto workers in Belvidere were being laid off indefinitely, you were able to receive a 56% pay raise boosting your total compensation to $39.5 million, which made you the highest paid executive among traditional auto companies."
"During the first six months of this year, Stellantis has generated over $6 billion in profits, making it one of the most profitable auto companies in the world," the letter adds. "We believe that if Stellantis can afford to spend over $8 billion this year on stock buybacks and dividends, it can live up to the contractual commitments it made to the UAW."
Last week, the UAW published a powerful video in which union president Shawn Fain makes some of the same demands that are in the lawmakers' letters.
"For years, this company has picked us off, plant by plant, and our leadership lacked the will and the means to fight back," Fain said in the video. "Those days are over."
Fain continued:
Stellantis management has launched a campaign of intimidation and harassment against our members, our local unions, and the International UAW to try to get us to back down from the fight to save our jobs.
I have bad news for Stellantis: We're not going anywhere.
Their corporate lawyers are claiming that our fight to keep jobs in Belvedere, Detroit, and America is based on what they call "sham grievances."
But here's the real sham: Over the past nine weeks, Stellantis has spent over a billion dollars on stock buybacks, all while saying they can't afford to keep their commitments to their own employees. In fact, Stellantis has spent $3 billion on stock buybacks this year alone.
The real sham is this campaign of intimidation and interference in our union's business. Stellantis managers are calling members, threatening their jobs. They're emailing our local presidents threatening lawsuits. This is what happens when a CEO is cornered and isolated. His dealers in America and Europe are turning against him. His suppliers and shareholders are suing him, and he's pushing our customers away.
And the sham is that he will walk away with a golden parachute of millions and millions of dollars, while American autoworkers are left holding the bag.
"The sham took place this week when he was asked about stepping down or being replaced, Carlos Tavares said, and I quote, 'I signed a contract,'" Fain said. "Well, Carlos, the workers at Stellantis signed a contract too, and it's time for you to honor it."
Calling on UAW members to sign a strike authorization pledge over Stellantis' broken promises, Fain vowed that "we will once again save this company from mismanagement, from corporate greed, and from killing tens of thousands of good jobs."
"But only if we stick together," he stressed. "So, are you in? If you are, sign your strike authorization pledge today. And you can do that by going to shitcancarlos.com."
"Let the company know where you stand," Fain added. "And together, let's tell Stellantis: The days of plant closures are over, and Carlos Tavares needs to go."
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Harris Rips Trump as 'One of the Biggest Losers of Manufacturing in American History'
"As president, he cut taxes for corporations, encouraged outsourcing, and lost nearly 200,000 manufacturing jobs, including auto jobs," said Democratic presidential nominee Kamala Harris.
Sep 27, 2024
Democratic nominee Kamala Harris hammered former President Donald Trump's manufacturing record ahead of his visit to the battleground state of Michigan on Friday, pointing out that offshoring of U.S. jobs increased during the Republican nominee's first White House term despite his grand promises to revitalize the nation's industrial base.
"Donald Trump is one of the biggest losers of manufacturing in American history," Harris, who outlined her own domestic manufacturing priorities earlier this week, said in a statement Thursday. "He makes empty promise after empty promise to American workers, but never delivers. As president, he cut taxes for corporations, encouraged outsourcing, and lost nearly 200,000 manufacturing jobs, including auto jobs. He has joked about firing workers, supported state anti-union laws, and suggested companies move jobs out of Michigan."
"Yet it was Trump's trade deal that made it far too easy for a major auto company like Stellantis to break their word to workers by outsourcing American jobs," Harris continued, pointing to the United States-Mexico-Canada Agreement (USMCA). "As one of only 10 senators to vote against USMCA, I knew it was not sufficient to protect our country and its workers. Many who voted for this deal conditioned their support on a review process, which as president I will use."
"On his watch, a Warren car plant closed and the auto industry bled thousands of jobs."
Trump has two campaign events scheduled in Michigan on Friday as recent polling shows him narrowly behind Harris in the key state, which President Joe Biden won in 2020.
Despite his starkly anti-worker record, Trump has sought to appeal to members of the United Auto Workers (UAW)—which has endorsed Harris—and other unions in Michigan and elsewhere during his bid for another term, issuing sweeping promises and dire warnings about the future of U.S. manufacturing if he loses in November.
If he doesn't prevail, Trump said during a town hall in Flint, Michigan last week, "there will be zero car jobs, manufacturing jobs."
"It will all be out of here," he added.
Democrats have countered such claims by pointing to the fact that offshoring accelerated under Trump, particularly due to the passage of the Tax Cuts and Jobs Act—a law that delivered massive tax breaks to the rich and incentivized corporate offshoring.
A Public Citizen analysis published in the final months of Trump's presidency found that the Republican nominee's administration "awarded more than $425 billion in federal contracts to corporations listed among those responsible for offshoring 200,000 American jobs" during his first term.
The Economic Policy Institute separately found that roughly 1,800 U.S. factories shuttered during Trump's first term.
One of those factories was a General Motors plant in Warren, Michigan—a closure that the Democratic National Committee (DNC) highlighted with a billboard display in the city ahead of Trump's visit Friday.
“Donald Trump broke his promises to Michigan's working families," said Stephanie Justice, a DNC spokesperson. "On his watch, a Warren car plant closed and the auto industry bled thousands of jobs."
In a video released earlier this week as part of its 2024 election efforts, UAW president Shawn Fain called Trump a "con man" who is merely posturing as an ally of the working class while pushing policy changes that would primarily benefit those of his own class, the ultra-wealthy.
"We can't get fooled or distracted by a con man like Donald Trump. That's why I'm voting for Kamala Harris," said Fain. "That's why our union has endorsed Kamala Harris, and that's why our country needs Kamala Harris as our next president."
Throughout the 2024 campaign, Trump has proposed aggressive tariffs to help protect and restore U.S. manufacturing. Earlier this week, the former president singled out John Deere, a federal contractor that has announced plans to lay off roughly 2,000 workers and shift some of its production to Mexico.
"I am just notifying John Deere right now that if you do that, we are putting a 200% tariff on everything that you want to sell into the United States," Trump said during a campaign event in Pennsylvania earlier this week.
In an op-ed for Common Dreams on Thursday, Labor Institute executive director Les Leopold implored the Harris campaign and the Democratic Party more broadly to do more to counter Trump's messaging, specifically by calling out and moving to penalize companies that carry out mass layoffs while rewarding their rich investors with stock buybacks and dividends.
"Because Trump has difficulty focusing on a coherent message, the field is still open for the Democrats to put forth a new policy that directly affects the jobs of millions of workers," wrote Leopold. "Harris should give a primetime talk and focus on the $700 billion in taxpayer money that now goes to private corporations for goods, services, and subsidies."
"Here's the line she should stress: No taxpayer money shall go to corporations that lay off taxpayers or conduct stock buybacks," he continued. "The Democrats must decide, and soon, whether they really are the party of the working class. If they are, then they must fight hard to save worker jobs from unabated corporate greed."
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UAW Threatens Strike, Accusing Stellantis of Contract Breach
"In our 2023 UAW contract with Stellantis, we won historic gains," said the union. "A year later, the company wants to go back on their commitments to Stellantis autoworkers. Our answer is simple: HELL NO."
Aug 19, 2024
The United Auto Workers made clear on Monday that its members are prepared to file formal grievances regarding automaker Stellantis' failure to follow through on its commitments in the union's historic contract last year—and warned that a strike by tens of thousands of autoworkers is an option if their demands are not met.
Stellantis, one of the Big Three automakers, informed the UAW that contrary to promises made in the union's collective bargaining agreement last year, it does not intend to reopen an assembly plant in Belvidere, Illinois by the end of this year.
"It will not begin stamping operations for the Belvidere Mega Hub in 2025 and it will not begin production of a midsize truck in Belvidere in 2027," reads the grievance that several UAW locals are preparing to file.
The union said in a statement that Stellantis "has been unreceptive in talks with the union to stay on track."
The failure to reopen the idled manufacturing hub could impact UAW members who work for Stellantis nationally, said the UAW, "as they will not have those jobs for transfer opportunities in the event of layoffs."
"In our 2023 UAW contract with Stellantis, we won historic gains, from life-changing wage increases to the reopening of Belvidere Assembly, and billions more in investment in American autoworkers," reads the union's website page announcing the grievance. "We also won the right to strike over product and investment commitments. A year later, the company wants to go back on their commitments to Stellantis autoworkers. Our answer is simple: HELL NO. Thousands of UAW members sacrificed on the picket line to win this contract, and we intend to enforce it, even if that means going back on strike."
Locals in Toledo, Ohio; Kokomo, Indiana; and Detroit are among those that are prepared to file the grievances; the locals represent tens of thousands of workers who will be able to authorize a strike after the grievance is filed under the Stellantis contract.
"On behalf of autoworkers everywhere, we're standing up against a company that wants to go back on its commitments and drive a race to the bottom at the expense of the American worker," said Shawn Fain, president of UAW.
The union issued a clear demand to Stellantis, calling on officials to immediately plan for and fund the launch of the Belvidere Mega Hub and stick to the timeline that was agreed upon for the Belvidere Stamping operation in 2025 and midsize truck production in 2027.
The UAW announced the possible upcoming strike days after releasing a video in which Fain accused Stellantis of price gouging and called on Stellantis CEO Carlos Tavares to resign.
Tavares made $39.5 million last year—a 56% pay increase over 2022—despite drops in sales at the company and recent layoffs of hundreds of engineers and tech employees.
Stellantis, said Fain, has blamed autoworkers for its inability to move forward with the plan to reopen Belvidere Assembly.
"The problem isn't the little guys at the bottom," said Fain. "It's the big man at the top. If any autoworker did as piss-poor of a job as Stellantis CEO Carlos Tavares, they'd be fired. The truth is, Stellantis doesn't want to invest in America."
"America has invested in Stellantis. Workers have invested in Stellantis. And consumers have invested in Stellantis. And they deserve better. It's time to put an end to corporate greed at Stellantis."
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UAW Strike Put Us on Better Road to Energy Transition
We now know that job growth and electric vehicles can go hand in hand.
Nov 23, 2023
When the United Auto Workers (UAW) started its strike against Ford, GM, and Stellantis earlier this year, a grim storyline took shape in the press: This strike pitted President Biden’s push for a transition to electric vehicles (EVs) against his support for workers.
Writing about the strike and the transition to zero-emitting vehicles, the New York Times put it this way: “The political challenge posed by the industry’s transition to electric cars may be only beginning.” Politico was one of any number of publications issuing a simple warning: “UAW Strike Could Disrupt EV Rollout.” Two so-called facts were seemingly inarguable: Electric vehicles require far fewer workers to build, and none of the new battery plants could be unionized.
But now that the strike is over—more quickly than many assumed and on much better terms for workers than analysts had said was possible—a different set of lessons are clear, and they are the exact opposite of what many in the media and hot take marketplace had predicted:
- The Big Three automakers can invest in both their workers and the factories to make new EVs.
- Workers at many of the new battery plants can enjoy the same union protection as other autoworkers or have an easier pathway to join the union.
- Building EVs can create more jobs over the next few decades as the industry builds up its capacity and know-how.
Before examining each of these three points, it’s important to correct one misunderstanding.
While many commentators tried to pit union workers against electric vehicles, neither the UAW nor environmental groups ever did so. Just the opposite. Back in March of 2021, the UAW issued a white paper that called for specific ways the new EV industry could benefit workers: “The growth of EVs must be an opportunity to reinvest in American manufacturing, with union workers making the vehicles of the future.”
Meanwhile, NRDC was one of more than 100 green groups that sent a letter to the CEOs of the Big Three and specifically endorsed the UAW’s bargaining position: “Only through meeting these demands will the United States ensure a just transition to a renewable energy future.”
With the UAW contract in hand, autoworkers can get long-overdue pay hikes while automakers continue to make the investments they need to make (and frankly, should have made years ago) in building electric vehicles.
As the UAW strike began in mid-September, the Big Three executives and outside commentators pitted the workers’ demands for fair wages against the need for new investments in battery plants and EV factories. Ford CEO Jim Farley went so far as to warn that the workers’ demands would force Ford to scrap its investments in electric vehicles, saying the UAW’s contract demands would force the company to “choose between going out of business and rewarding our workers,” according to CleanTechnica.
But the reality was much different. The auto companies have billions of dollars in profits to draw from for these new investments, and worker salaries are just a small slice of their costs.
The Big Three made $21 billion in profits so far this year and $250 billion over the past decade. All of the CEOs have been raking in millions of dollars in their salaries and incentives. Worker salaries, on the other hand, make up just 5 percent of the cost of final assembly of a new vehicle, a study cited by the New York Times concluded.
And now, with the UAW contract in hand, autoworkers can get long-overdue pay hikes while automakers continue to make the investments they need to make (and frankly, should have made years ago) in building electric vehicles.
A big part of these investments is in building new battery plants. The auto companies have set up joint ventures to build many of them, and the UAW made it a top priority during bargaining to ensure these new plants are captured under each automaker’s master agreement or that the workers at these plants have other pathways to unionization. At first, the automakers balked, and outside analysts said this would be a bridge too far.
The Associated Press reported: “Ford’s Farley accused the union of holding an agreement hostage over union representation of battery plant workers. On a conference call with industry analysts, he said high wages at battery plants would raise the price of Ford’s electric vehicles above those from Tesla and other competitors.”
But then the ground started to shift. In a dramatic, Friday evening announcement in the midst of the strike, UAW President Shawn Fain announced that GM had agreed to unionize its battery plants. “We have had a major breakthrough that has not only dramatically changed negotiations but is going to change the future of our union and the future of our industry,” Fain said.
Stellantis soon followed, and even Ford agreed to create strong pathways for workers at future battery plants to fast-track union representation. There will be hard work ahead to ensure that all of these plants get union representation, but the agreement goes a long way toward making it happen.
Last, while this wasn’t part of the strike itself, one thing we learned along the way is that job growth and electric vehicles can go hand in hand. For years, a shadowy estimate has circulated around this transition: EVs, it was said, require 30 percent fewer workers to make; the reason being that an EV has fewer moving parts and fewer parts means fewer workers.
Except that it’s just not accurate. A stunning story from Emily Pontecorvo at Heatmap concludes: “Whether or not the U.S. is able to build up domestic battery production, early evidence of the EV transition in the United States shows that EVs may require more labor, even in the final assembly stages.” If you include the battery production figures, this new industry could create thousands more good manufacturing jobs in this country. (Pontecorvo’s full article is worth taking the time to read. There is a lot to it.)
So, the results are in, and the conclusion is clear: With a union agreement in place that includes new measures to help unionize battery plants, the predicate is set to ensure that workers benefit while the United States transitions to electric vehicles. Yes, as we have seen recently, the road ahead isn’t flat and straight. There will be twists and turns, ups and downs. But the general direction is crystal clear. We are on the road to a better tomorrow.
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Big Three Autoworkers Approve Contracts After UAW Strike
"It's a good contract, you just can't get around that," said one UAW local president. "You look at the investment we got in 2019 compared to now, it's not rocket science. It's just better."
Nov 17, 2023
As voting wrapped up on Friday, United Auto Workers members at Ford, General Motors, and Stellantis were all on track to approve contracts finalized during a six-week UAW strike demanding improved pay, benefits, and working conditions from the "Big Three."
The union's online trackers had the ratification vote results as 68.2% to 31.8% at Ford, 54.7% to 45.3% at GM, and 69.6% to 30.4% at Stellantis as of press time. The UAW and companies have not yet commented on the results.
The UAW launched its "Stand Up Strike" in mid-September, and increased walkouts at various U.S. locations throughout the talks. Rutgers University labor studies professor Rebecca Givan told The New York Times that the strategy "really upended a lot of conventional wisdom" in the labor movement and helped reverse some concessions the union had previously accepted, showing that "if workers build enough power, they can win things back."
The pending agreements, which were reached over a few days at the end of last month, don't deliver on all worker demands but celebrated provisions include 25% wage increases and cost-of-living adjustments through April 30, 2028.
As Bloomberg reported:
Workers at Ford's Dearborn, Michigan, truck plant voted 78% in favor of ratifying the agreement Friday, putting Ford over the top, according to UAW Local 600 President Nick Kottalis.
"It's a good contract, you just can't get around that," Kottalis said. "You look at the investment we got in 2019 compared to now, it's not rocket science. It's just better."
The contracts' expiration date sets up a possible mass action around International Workers' Day on May 1, 2028. The UAW said last month that "we invite unions around the country to align your contract expirations with our own so that together we can begin to flex our collective muscles."
Also framing the Big Three battle as part of a bigger effort, UAW president Shawn Fain declared last month that "if we are going to truly take on the billionaire class and rebuild the economy so that it starts to work for the benefit of the many and not the few, then it's important that we not only strike, but that we strike together."
Fain on Tuesday testified at U.S. Senate Health, Education, Labor, and Pensions Committee Chair Bernie Sanders' (I-Vt.) hearing about how unions raise up working families and take on corporate greed. The UAW leader stressed the "essential role" of federal lawmakers, calling on them to not only support "our fights and other fights like ours," but also "finish the job for economic and social justice for the entire working class."
Already, the historic Big Three deals are leading to "UAW bumps" at other automakers including Honda, Hyundai, Subaru, and Toyota. The union is also aiming to help organize workers at Telsa, the electric vehicle company of billionaire Elon Musk.
Democratic U.S. President Joe Biden, who is seeking reelection next year, became the first sitting president to join striking workers on a picket line in late September, when he rallied with UAW members outside a GM plant in Belleville, Michigan.
The Biden campaign's Ammar Moussa said in a statement Friday that "Joe Biden isn't just saying that he'll always have workers' backs—he's proving it. After President Biden made history by standing with striking autoworkers, unions have notched historic wins and even nonunionized auto companies are taking note, increasing workers' wages.
"This is what happens when you have a president who cares about working people," added Moussa. "Workers win."
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The UAW’s Game Changer: The Right to Strike Over Mass Layoffs
This historic victory could have significant benefits for all working people.
Nov 14, 2023
The United Auto Workers has scored major victories in its new contracts with the Big Three automakers: GM, Ford, and Stellantis. Not only did the union win massive wage increases and other critical demands, but it also won the virtually unheard of right to strike over plant closures. This historic victory could have significant benefits for all working people.
Since the dawn of capitalism, plant closings and mass layoffs have disrupted working-class lives. The problem rapidly accelerated when Republican and Democratic administrations, starting with Reagan in 1980, freed Wall Street from regulations that discouraged job-killing leveraged corporate takeovers and stock buybacks. While researching my upcoming book, Wall Street’s War on Workers, we found that more than 30 million workers have been subjected to mass layoffs since 1996.
The auto industry was one of the first to institute mass layoffs as mismanagement and stiff competition from abroad in the 1970s cut into the Big Three’s market share. Until this recent UAW contract, unions mostly had been unable to stop mass layoffs. Instead, they only had the contractual right to conduct “effects bargaining,” negotiating to secure severance payments for the workers who would be let go. Even if they had wanted to strike, in most cases it would have been prohibited by their contracts.
The UAW has changed that game. If GM or Ford or Stellantis decide to shut down a facility going forward, they will now be forced to think twice. Is the risk of a national strike that could cost them billions, worth the short-term savings that come with layoffs? Or might it make more sense to find another use for the facility and keep everyone working? The new UAW contracts with the Big Three bring this entirely new financial dynamic into the mass layoff game. Already, Stellantis has agreed to reopen its plant in Belvidere, Illinois, and rehire all 1,200 laid-off workers there.
As Stellantis just demonstrated by reopening its Belvidere facility, large corporations are far more flexible than their public rhetoric suggests.
But doesn’t forcing the companies to keep those workers employed weaken them and make them less competitive? That’s what corporations always claim… at least until persuaded and pressured to do otherwise. However, corporate leaders know that mass layoffs often have little to do with production and sales. In many cases, mass layoffs are used to squeeze more cash out of the company to finance stock buybacks – a legalized form of stock manipulation that enriches top corporate officials and Wall Street stock-sellers (see Mass Layoff Capitalism). For example, in the last 12 years, GM has poured more than $21 billion into stock buybacks. No one knows for certain how many jobs were lost to help finance those buybacks, but the number is certainly significant. In 2015 alone, the company laid off 14,000 employees.
Our research suggests that in many, if not most, cases, stock buybacks and/or leveraged buyouts precede mass layoffs. Companies like Toys “R” Us and Bed, Bath and Beyond have been ruined by that process.
But what if an auto company really can’t sell one of its products? How then could it possibly keep a plant open?
As Stellantis just demonstrated by reopening its Belvidere facility, large corporations are far more flexible than their public rhetoric suggests. They are adept at finding ways to cut costs by outsourcing work to non-union labor, here and abroad. If pressured, they have the capacity to redirect that production to facilities that are being shut down here and re-employ union labor.
An excellent example of this flexibility can be found at Siemens Energy. The company decided in 2020 to quit the oil drilling and fracking businesses and announced layoffs of approximately 1,700 U.S. workers and another 3,000 thousand in Germany. In the U.S., all the layoffs took place and the unions involved conducted effects bargaining. But in Germany, where workers hold half the seats on the Siemens board of directors, the union won an agreement that there would be no compulsory layoffs. Instead, the company was allowed to try to entice workers to leave voluntarily with significant pay and benefit packages. The company also agreed to put new production into the six facilities that were originally scheduled to be shut down.
The UAW is forging a new path to build real union power to stop corporate mass layoffs through the right to strike.
In the U.S., workers do not have that kind of leverage on boards of directors. In Germany, it is mandated by laws urged upon them by the U.S. after WWII. The UAW is forging a new path to build real union power to stop corporate mass layoffs through the right to strike.
Shawn Fain, the visionary and effective UAW president, wants these union successes to spread far and wide. He is urging every union to have their contracts end on the same date—May 1, 2028—the internationally recognized Labor Day, which honors the 1892 Homestead strike for the eight-hour work day. With concerted pressure, perhaps the labor movement would develop broader, basic common demands that support the working class. Stopping needless mass layoffs should be near the top of the list.
Can you imagine if every union had the right to strike over mass layoffs and then succeeded in protecting job security? That might lead to an explosion of workers wanting to join unions. We might even see a repeat of a legendary story from the diary of a union organizer during the 1940s: “Today I organized 12 new local unions,” he wrote. Of course, he didn’t go out and organize each one on his own. They were running into the organizer’s office requesting union charters.
Today, for the first time in a long, long time, there’s a decent chance that workers will be running to the UAW.
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The UAW Is Leading the World Toward a May Day to Remember
If May 1, 2028, arrives without signed contracts for America’s unionized auto workers, UAW president Shawn Fain has now made plain, these workers don’t plan on walking out alone.
Nov 05, 2023
The folks at the U.S. Coast Guard know “mayday” as well as anyone. Every year they handle thousands of “mayday” distress calls. Their counterparts worldwide handle thousands more. Overall, the number of “mayday” calls since the 1920s—when “mayday” became the international go-to for declaring emergency situations—now runs well into the millions.
But we’ve never had a “mayday” more socially consequential than the “mayday” that U.S. auto workers have just thrust upon our global calendar. This potential “mayday” just happens to impact only our world’s richest—and has suddenly become a much more real possibility than a crash of any one of their outrageously deluxe private jets.
What have U.S. auto workers done? They’ve successfully bargained a set of watershed contracts that establish May 1, 2028, as the day the workers of our world may actually unite, for the first time ever, against our world’s super wealthy.
The greatest significance of the new UAW auto industry contracts may be the impact these bargaining triumphs will have on the future. These agreements could become the single most important step to a more equal world that any of us have ever seen.
The new contracts the United Auto Workers union is now signing with Detroit’s Big Three—Ford, GM, and Stellantis—all set April 30, 2028 as their expiration date. That would make May 1 the day the workers the three new contracts cover walk out on strike if no new deal materializes.
This May 1 date, of course, holds enormous global significance. Working people the world over have been celebrating the first of May as “International Labor Day” for generations, in a tradition that began back in 1886 when workers in the United States struggling for an eight-hour day staged a May 1 national protest.
If May 1, 2028, arrives without signed contracts for America’s unionized auto workers, UAW president Shawn Fain has now made plain, these workers don’t plan on walking out alone.
“We invite unions around the country to align your contract expirations with our own so that together we can begin to flex our collective muscles,” says Fain. “If we’re going to truly take on the billionaire class and rebuild the economy so that it starts to work for the benefit of the many and not the few, then it’s important that we not only strike but that we strike together.”
And by aligning the UAW’s next big contract deadline with International Labor Day, the union is clearly inviting coordination beyond the national level. The May Day that workers worldwide have so long honored, as Fain notes, has always been “more than just a day of commemoration, it’s a call to action.” And the labor movement worldwide, as the latest headlines remind us, is showing real signs of acting more in strategic concert.
Within the global auto industry, for instance, no corporation more embodies the inequality our corporate world order has spread so aggressively than the non-union Tesla. Under CEO Elon Musk, the world’s richest single individual, Tesla pays wages that run substantially below the hourly rates at Detroit’s Big Three, and that gap will only widen after the new UAW contracts go into full effect.
This shortchanging of workers has sped the growth of Musk’s fabulous fortune and helped boost Tesla’s share of the global electrical vehicle market to about 60%. The new UAW contracts, predicts German Bender of the Swedish think-tank Arena, could well “boost union interest among Tesla workers.”
That interest already seems to be growing. On the final Friday of the UAW walkout in the United States, workers at Tesla-owned servicing shops in Sweden went out on strike—after five years of fruitless attempts to get Tesla’s Swedish subsidiary to reach a bargaining agreement. That strike has now spread to all auto shops in Sweden that do work on Tesla cars.
This Swedish walkout, the global union confederation IndustriALL has announced, represents the first formal strike against Tesla anywhere in the world. And the challenge to Tesla may soon be spreading beyond Sweden. Germany’s largest union, Bloomberg reports, is hoping to organize a 12,000-worker Tesla plant near Berlin.
Tesla’s over 120,000 workers worldwide will certainly see plenty to like in the new UAW contracts in the United States. At Ford, workers who started as temps making $16.67 an hour will be automatically moving to permanent status and an hourly wage rate of at least $24.91. That rate will hit $40.82 an hour by the contract’s end, and any inflation between now and then will kick that rate still higher.
Workers in major American industries haven’t seen gains that stunning since the middle of the 20th century, a time when the chief execs of America’s largest corporations averaged only just over 20 times the compensation of their workers. That gap today, the Economic Policy Institutecalculates, is now running nearly 350 times.
But the greatest significance of the new UAW auto industry contracts may be the impact these bargaining triumphs will have on the future. These agreements could become the single most important step to a more equal world that any of us have ever seen.
The giants of American auto manufacturing, as Fain puts it, “underestimated” their own workers’ capacity to unite and fight together.
“We have shown the companies, the American public, and the whole world that the working class is not done fighting,” he adds. “In fact, we’re just getting started.”
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