Subject: LR INK: Government subsidizing unions in the auto industry

December 9, 2021
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Manufacturing Madness

The auto industry continues to recover from the double whammy of sluggish sales followed by a dire semiconductor shortage, and Congress’ still-in-progress Build Back Better legislation complicates matters. Multiple versions of the act include electric-vehicle tax incentives geared towards unionized auto manufacturers; these incentives would clearly benefit Detroit's Big Three (General Motors, Ford, and Stellantis) through the union requirement while leaving Tesla out in the cold. The puzzler there, of course, is that Tesla remains the largest EV seller yet could be effectively penalized by the Biden administration for being a union-free workplace. (Not incidentally, Biden’s August EV summit also snubbed Tesla while inviting the Big Three).

During this week’s Wall Street Journal conference, Musk fielded questions about the Build Back Better Act, which is still moving through the Senate and currently includes those tax incentives for EVs built by union members. The bill now includes a lesser amount (which simply reinstates a previous tax credit discontinued in 2019) for Tesla, and Musk took a surprising stance. He pushed back while declaring that no EV manufacturers (at all) should receive federal funds, given the ballooning federal deficit. Musk’s rhetoric is growing as heated as lawmakers debating this legislation, which is not the only example of potential federal overreach here.

In early 2021, the NLRB ruled that Musk must delete a 2018 tweet (although he apparently did not delete it), which suggested that employees would lose stock options if they unionized. He did, however, state that his employees are free to unionize if they so desire; he also clarified his belief that the UAW would be the guilty party in taking stock options away. Further, Musk confirmed a CNBC report about Tesla workers making more money than union workers at GM.

Meanwhile, Tesla’s avoidance of unions, thus far, may not last forever, at least internationally. Over in Berlin, Germany, the country’s largest union, IG Metall, recently expressed intent to organize Tesla employees at a plant that will employ 12,000 workers. Stay tuned on that note. 

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Union Bailout Update

Trump-Era NLRB precedent for severance deals on chopping block https://lri.link/31reLG5

NLRB invites briefs regarding appropriate bargaining units https://lri.link/3GkJOC4

Build Back Better vs. small business (Opinion) https://lri.link/3Dx3l0n

Corrupt NLRB puts unions over workers (Opinion) https://lri.link/3GhyBSI

Google’s union campaign strategy documents not privileged, rules NLRB judge https://lri.link/3DuZWiz 

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Covid-19  

N.Y.C. breaks new ground with vaccine mandate for all private employers https://lri.link/3rHQFRO

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Organizing

Starbucks CEO asks workers to stick with chain, not union https://lri.link/3owHSjZ

Starbucks loses bid to delay union vote count in 3 NY stores https://lri.link/3DDrZfL

Amazon workers in Alabama can have second union vote, NLRB says https://lri.link/3pymmuf

NLRB decision overturning Amazon union election defies workers' rights (Opinion) https://lri.link/3Dwto7C

A dubious union revote at Amazon (Opinion) https://lri.link/3GkixzM

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Union Corruption

Former California union official filed $44,000 worth of fraudulent time sheets, CalPERS says https://lri.link/330rDDf

Federal corruption probe leads to first major overhaul of UAW elections in 70 years https://lri.link/3pyo8vp

UAW workers vote to directly elect union leaders https://lri.link/31BWgyn

Tesla CEO Elon Musk mocks UAW, slams union over corruption https://lri.link/3oxcq57

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Manufacturing

Kellogg to permanently replace striking employees as workers reject new contract https://lri.link/31NlN7S

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Tech/Media Unions

Unions urge FTC crackdown on Uber, Amazon, Google practices https://lri.link/3prhJSM

BuzzFeed News union workers walk out in protest on day of SPAC vote https://lri.link/3Go87Pk

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Healthcare Woes As covid persists, nurses are leaving staff jobs – and tripling their salaries as travelers https://lri.link/3GogsCD

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Education/Sports

Harvard workers reject university's contract offer https://lri.link/3y9jhow
About Labor Relations INK
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Contributing editors for this issue: Phillip Wilson, Greg Kittinger, and Kimberly Ricci 

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