The United Auto Workers has been a thorn in the side of the car industry for decades. Each time it negotiates with America\u2019s car makers, it threatens to erode margins. That is about to happen again in a way that could be financially crippling to the big companies. (These American jobs had zero union members last year.)<\/p>\n
The asked-for increase, according to most analysts, is 40%. According to The Wall Street Journal, over a four-year contract, \u201cit would be broken up into a 20% increase upon the contract\u2019s ratification, and four additional 5% wage increases given each year.\u201d The UAW believes this is less than the recent pay of car company CEOs. It is absurd to use the pay of three executives to the pay of tens of thousands of workers. The UAW should have come up with a less crazy comparison, which might be rising earnings.<\/p>\n
The UAW often has a reasonable reason to ask for more money and benefits. The cost of living rises in most quarters, particularly the cost of benefits.<\/p>\n
As many observers point out, the pay demand comes when car companies want to evolve from fossil fuel engines to electric vehicles (EVs). The success of this is by no means assured. Ford recently said it will not ramp up EV production as fast as planned because of slack demand. Ford believes that will happen in the next year. There is no true assurance. No matter, all major car companies are sinking billions of dollars into an uncertain future.<\/p>\n \t\t\t\t