Subject: Where In The World Is The UAW’s Shawn Fain? Everywhere! : LRI INK

May 2, 2024

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Where In The World Is The UAW’s Shawn Fain? Everywhere!

by Kimberly Ricci

If you are growing weary of seeing UAW President Shawn Fain’s face whenever a Big Labor conversation pops up, the bad news is that he’s still going like the Energizer Bunny

 

Fain knows no boundaries while claiming to be pro-worker but still hurting his members in critical ways: (1) The data shows, as our own Phil Wilson recently discussed in light of Fain’s “moon shot” mass-organizing effort in the South, that union members do not make more money than non-union counterparts; (2) When union contracts do lead to significant wage increases, companies often must turn to layoffs to balance books against higher labor costs, and the auto manufacturing industry is no different. 

 

Fain, however, is still pulling the wool over workers’ eyes. Perhaps that is the case because general economic frustration leads workers to mistakenly believe that an outside force can solve their problems. Eventually, the union will disappoint these workers, but until that happens, the damn lucky cog is everywhere, so let’s review his most recent appearances:

  • The UAW’s win at a Volkswagen plant in Tennessee is considered a watershed moment and counts as the first Southern auto plant to join the UAW since the 1940s. It’s also the union’s first win at a foreign-owned auto plant – part of an overall UAW push to target 13 non-union automakers.

  • The union’s next Southern move involves two Mercedes-Benz plants in Alabama (Vance and Woodstock), where workers will vote on UAW membership from May 13-17. If this goes the union’s way, up to 5,200 new members could join the rolls. Analysts believe that victory in Alabama will not come as easily as the Volkswagen vote, yet the union claims that a “supermajority” is ready to join. Mercedes announced on May 1st that they were naming a new president and CEO of Mercedes-Benz U.S. International (MBUSI), Federico Kochlowski, to replace Michael Göbel, who had served in the role since 2019.

  • The UAW also claimed an “historic” agreement with Daimer Truck, which averted a strike with an eleventh-hour deal for 7,300 workers. Reportedly, every Daimer worker will receive 25+% raises over four years in line with the Big Three raises. The union did toss unfair labor practice charges at Daimer on the way to the goal.

  • Michigan’s Stellantis’ Warren Stamping Plant workers authorized a strike of 1,000 workers over safety issues during the production of the Dodge RAM and Jeep Wrangler. 
    Governors of six Southern states are sounding the alarm about job losses to come if/when unions drive up labor costs at regional auto plants.

  • The white whale on the horizon: Fain’s ultimate target is to capture the South and then move on to unionizing Tesla. Along the way, Fain has been dramatically invoking sermon-like rhetoric, including quoting the Bible at a victory party after the Chattanooga Volkswagen vote, presumably to increase his appeal within deep red territory. 

 

To add insult to injury: Laid-off workers at a Detroit-area Ford Rouge complex recently found themselves treated to a “Going Away Party” – thrown by UAW Local 600 – due to job losses after increased labor costs from the new Big Three contracts. The union must believe that BBQ chicken sliders and cookies fix everything, and it’s normal for union presidents to take off running rather than face the truth.

The One Where Questions Get Dodged

by Kimberly Ricci

Unfortunately, this year has provided ample opportunity to watch how unions respond to layoffs, which have been plentiful in many industries. Big Labor, of course, cannot shield workers from these job losses but will always attempt to shift the blame for responsibility. 

 

That stance grows more damning when a union’s maneuverings help cause layoffs, and in response, union leaders tend to shrug their shoulders. Then there would be Teamsters President Sean O’Brien: he recently power walked away from a young union member who is already witnessing broken promises after a year of membership.


To briefly summarize how this situation began: The Teamsters boasted of a “historic” UPS contract that led to substantially higher labor costs, followed by the company tipping 12,000 job cuts. These cuts extended to entire warehouse shifts and included layoffs for drivers who took to social media to disprove assumptions that only corporate jobs were cut.


Additionally, multiple UPS contract points disappointed workers, including the Teamsters member who confronted O’Brien at this month’s Labor Notes conference. In a stunning social media clip, O’Brien showed that he was in no mood to talk to this member and insisted, “I’ve gotta catch a plane” while striding away from the following questions:

  • “Why did you agree to agree to a new tier for the part-time workers?”

  • “Why is it that all the UPS workers hired after August 1, 2023, are paid less?”

  • “If there was an effort to abolish tiers, why would you create a new tier?”

  • “Why are there no protections against technology changes in our contract?”

  • “Why is it that you said that anyone who opposes aspects of the UPS contract is lying and spreading misinformation?”

  • “Why did you say that the government had no role in the UPS contract when the Biden administration said they were closely coordinating with you and UPS the whole time?”

O’Brien did not offer a substantial explanation or rebuttal to these accusations. 

The union chief’s decision to flee only added to existing tension after a Teamsters national bargaining team said that UPS “has a right” to make job cuts. While that answer is technically correct – unions cannot prevent layoffs – Big Labor shouldn’t be too surprised when workers want answers after a contract substantially increases labor costs. A company must then cut corners to stay in business. 


Returning to the aforementioned social media video, the World Socialist Web Site called the clip evidence that O’Brien was “[d]emonstrating both contempt and real fear of the rank-and-file.” The outlet also published an open letter from the UPS Workers Rank-and-File Committee, which demanded that O’Brien explain why these layoffs are occurring while adding, “You’ve already given your answer with your stony silence.”


The heat on O’Brien likely won’t let up anytime soon. UPS reportedly plans to close around 200 facilities throughout the U.S. while leaning into automation. Perhaps those plans were already in the works, but arguably, a union contract that forces UPS to pay full-time drivers around $170,000 in pay and benefits has only sped up the timeline. O’Brien had to know that this clash would come, yet he is pretending that nothing is amiss – not a terribly brave stance from such a “militant” leader.

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About Labor Relations INK

Labor Relations INK is published weekly and is edited by Labor Relations Institute, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


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Contributing editors for this issue: Greg Kittinger, Michael VanDervort, and Kimberly Ricci.


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About Labor Relations Institute

LRI exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 41 years, LRI has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

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