High profile shouting Musk: Is the American Automobile Union really the savior?

Recently, the UAW stated that in order to fully leverage the success of negotiations with the Detroit Big Three, unions will take the next step: to organize unions in non unionized American car factories such as Toyota and Tesla. And UAW Chairman Finn made a bold statement in an interview: "We can defeat any company. Finn also pointed out that the new contract with UAW is very good, allowing non unionized automotive workers to receive salary increases.

After contract negotiations between UAW and the three major car giants in Detroit ended, Toyota announced salary increases and more benefits for workers.

Earlier on the late night of September 14th, UAW announced that workers from the three major car manufacturers were on strike. The total number of union workers in the three major automobile manufacturers in the United States is 146000, and by the time the temporary agreement was reached, approximately 45000 people had joined the strike.

On October 30th local time, UAW reached a preliminary agreement with General Motors, bringing the six-week strike to an end. Since then, the American Federation of Automobile Manufacturers and the three major Detroit automakers have reached preliminary agreements, including a gradual increase of 25% in hourly wages for workers. This strike resulted in over 7800 layoffs and economic losses of $9.3 billion.

It's not surprising that UAW aimed the next move at Tesla.

Although workers from factories such as Tesla and Toyota in the United States have not yet joined unions, Finn emphasized that his influence will extend beyond the Detroit Big Three. "When we return to the negotiating table in 2028, the negotiations will not only involve the Big Three in the automotive industry, but also the Big Five or Big Six

Especially Tesla, it is a particularly attractive target for UAW. Currently, Tesla remains the world's most valuable automaker and a leading figure in the electric vehicle industry. In California, Texas, Nevada, and New York alone, Tesla employs tens of thousands of non union workers.

In September of this year, in response to a strike by American Auto Workers, Musk pointed out on social media: "We pay more than UAW, but our performance expectations are also higher. Over the years, many of our factory's technical personnel working on the production line have become millionaires through the company's stock distribution

So, is this influential American labor union really the savior who advocates justice and upholds the legitimate rights and interests of American workers? Actually, it's not that simple at all. UAW is not a charitable organization. Its important way of making profits is to collect 5% of workers' wages as membership fees. In order to continuously increase profits, the most direct way for the union is to expand its membership and attract more workers to join the union.

From the analysis of the interests of the enterprise, workers, and trade unions, what the enterprise wants is low cost and high efficiency. Workers want higher wages, while trade unions want higher membership fees. Among these three, workers want the highest possible salary and enterprises want to reduce costs as much as possible, which is a normal demand and a behavior that is in line with human nature and the development laws of things. Therefore, trade unions should actually play a mediating role and cannot clearly lean towards either side, otherwise it will disrupt the original balance.

But in practical operation, trade unions are completely on the opposite side of the enterprise, disregarding its survival and interests. On the one hand, in order to receive more membership fees and attract more workers to join the association, it is necessary to blindly demand that enterprises increase worker wages. Under the impetus of this internal logic, trade unions must fight against the enterprise and stand on the opposite side of the enterprise. On the other hand, trade unions need to protect workers who have paid their dues, while they turn a deaf ear to those who have not paid their dues. Therefore, such an American union is more like a public relations company, where workers hire unions to fight for their own interests, without any public welfare or fairness, and cannot represent the interests of the proletariat or working class.

It is worth mentioning that US President Biden not only personally participated in this strike, but also praised the agreement reached between UAW and General Motors: "This historic agreement proves the power of unions and collective bargaining, establishes stable middle-class employment opportunities, and helps the most iconic American companies thrive

However, the agreement with the UAW has led to a significant increase in costs for automakers. With the continuous increase in automobile manufacturing costs, the severe squeeze on survival space by the electric vehicle industry, and more geopolitical uncertainty, it may push General Motors, Ford, and Chrysler into the fast lane of bankruptcy. American automakers, represented by Detroit, are also facing increasing difficulties.