The United Auto Workers (UAW) union is setting its sights on Tesla Inc. (NASDAQ:TSLA) and Toyota Motor (NYSE:TM) following successful negotiations with Detroit’s “Big Three” automakers.
What Happened: Shawn Fain, the union’s president, is planning to use the momentum from recent record contracts won after intense negotiations and labor strikes with General Motors, Ford Motor and Chrysler-parent Stellantis, to aid in expanding the union’s organizing efforts, CNBC reported.
Fain stated, “We’ve created the threat of a good example, and now we’re going to build on it.”
Such a move would significantly bolster the union’s negotiating power and membership. UAW membership has dwindled from about 700,000 members in 2001 to 383,000 at the start of this year. The UAW has previously tried, unsuccessfully, to organize foreign-based automakers operating in the U.S., such as Volkswagen and Nissan Motor.
Fain has pledged to extend beyond the “Big Three” and expand to the “Big Five or Big Six” by the time the union’s 4.5-year contracts with the Detroit automakers run ...