UAW Pours $40 Million into Unionizing Auto & Battery Workers

 The United car Workers (UAW) has pledged $40 million to organize non-union car and battery workers by 2026, demonstrating its commitment to growing its membership and influence. The Detroit-based union's governing International Executive Board voted to commit the funds, marking the first time the UAW has provided a monetary commitment for its organizing efforts since its November campaign to double its roughly 146,000 autoworker members at the Detroit Three by unionizing employees at 14 automakers ranging from Volkswagen AG to Tesla Inc. The funds will be used to support battery plant initiatives, notably in the South, including Ford Motor Co.'s joint venture facilities with SK On Co. Ltd. in Tennessee and Kentucky.

The electric vehicle battery business is expected to provide tens of thousands of jobs across the country, and new regulations are being established as it comes online. Workers will struggle to preserve and raise the quality in the emerging battery business by launching a vast new organization. BlueOval SK just launched a local hiring roadshow to educate individuals interested in working at the $5.6 billion battery facility in Stanton, Tennessee, which is set to open next year.

The UAW's net assets totaled $1.045 billion at the end of 2022, a 3.8% decrease from the previous year. The $40 million contribution would be derived from union dues, specifically the "Article 16 fund." More than 10,000 non-union autoworkers from the 14 manufacturers have signed authorization cards allowing the UAW to represent them. The union argues that once 70% of workers sign authorization cards at a facility, it will demand recognition or file a National Labor Relations Board election.

Following the UAW's record contract negotiations with the Detroit Three through April 2028, which included 27% compounded wage increases, cost-of-living adjustments, billions of dollars in investments, a three-year progression to the top wage, and increased retirement and pension contributions, a number of competitors announced improved pay and benefits. Hyundai Motor Co. has unveiled a new compensation structure that would increase hourly salaries by 25% by 2028, directly and indirectly employing 114,000 Americans and investing more than $12 billion in Alabama and Georgia. Mercedes-Benz also emphasized its 25-year presence in Alabama, citing its excellent team culture and open-door policy as the best way ahead to ensure continuous success.