UAW Looks to German Transplants for International Exposure
Tweet
Share
E-mail
In an effort to capture growth in auto sales outside the US -- something the group hasn't done in quite some time -- the United Auto Workers is attempting to gain control of a number of US plants owned by German-based Volkswagen AG and Daimler AG.
At the heart of UAW President Bob King’s plan to persuade these German companies is action to gain trust of the employees, not the management teams. The union will be looking to German-based unions such as IG Metall to lean on executives back in their home country. A comment from an official at IG Metall, Peter Donath, to Reuters seems to sum up the current foreign sentiment accurately: "We will support the UAW, but we will not do the UAW's work."
The UAW plans to target a large number of southern-based factories despite these plants being "historically hostile to unions," according to Reuters. King has previously admitted the UAW is effectively all in and needs to complete a deal with these foreign transplants or risk a sooner-rather-than-later end to the UAW.
King's attempts toward German-based manufacturers over Asian automakers was more or less a no brainer given past efforts with (as one example) Nissan. In 2001, the UAW's attempt to unionize a Tennessee Nissan factory was voted down by about two-to-one.
The proposed move also brings to attention a slow-rolling shift from union to non-union workers: over the last 30 years, union controlled factories have been losing job positions while non-union based companies have been adding additional positions.
If the UAW is able to successfully reach deals with the German-based automakers, it would mark a huge milestone for the company. A new deal could help open the door for persuading other foreign automakers. In addition -- and certainly playing into the UAW's efforts -- many Asian automakers have recently announced plans to increase production levels in America to help keep up with strong global demand.
At the heart of UAW President Bob King’s plan to persuade these German companies is action to gain trust of the employees, not the management teams. The union will be looking to German-based unions such as IG Metall to lean on executives back in their home country. A comment from an official at IG Metall, Peter Donath, to Reuters seems to sum up the current foreign sentiment accurately: "We will support the UAW, but we will not do the UAW's work."
The UAW plans to target a large number of southern-based factories despite these plants being "historically hostile to unions," according to Reuters. King has previously admitted the UAW is effectively all in and needs to complete a deal with these foreign transplants or risk a sooner-rather-than-later end to the UAW.
King's attempts toward German-based manufacturers over Asian automakers was more or less a no brainer given past efforts with (as one example) Nissan. In 2001, the UAW's attempt to unionize a Tennessee Nissan factory was voted down by about two-to-one.
The proposed move also brings to attention a slow-rolling shift from union to non-union workers: over the last 30 years, union controlled factories have been losing job positions while non-union based companies have been adding additional positions.
If the UAW is able to successfully reach deals with the German-based automakers, it would mark a huge milestone for the company. A new deal could help open the door for persuading other foreign automakers. In addition -- and certainly playing into the UAW's efforts -- many Asian automakers have recently announced plans to increase production levels in America to help keep up with strong global demand.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wolfe remains bullish on this major AI chip stock. Here's why
- Goldman says this company is a key beneficiary of Saudi Arabia's capex boom
- William Blair says buy the dip in this Industrial stock
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
