(Bloomberg) — The head of the union representing about 150,000 employees of General Motors Co., Ford Motor Co. and Stellantis NV in the US says workers making battery components must be on the same pay scale as those assembling cars or making gasoline or diesel-powered engine and transmission parts.
“We believe our members should be compensated at the appropriate level for the manufacturing” of battery packs, United Auto Workers President Ray Curry said in a phone interview Friday.
“It’s important to be able to maintain that in the industry.”
That position could be a major source of friction when the United Auto Workers union sits down with Detroit carmakers next year to hammer out a new four-year contract.
President Joe Biden has repeatedly called for EV jobs to be “good-paying union jobs,” but the simplified structure of an EV powertrain — essentially a battery and some motors to turn the axles — means it requires fewer people and hours to make.
Automakers are investing billions in new battery plants to power an onslaught of EV models they’re rolling out to catch up with Tesla Inc.
At the same time, they’re seeking to drive down the cost of batteries to offset skyrocketing metals prices. At a plant in Ohio operated by GM’s Ultium Cells joint venture with a unit of LG Chem Ltd., laborers top out around $22 an hour vs.
the $32 hourly wage for a traditional vehicle assembly worker.
See also: Soaring EV Prices Mean Fewer Middle Class Buyers Can Afford Them
In addition to maintaining current wage standards in the EV era, Curry said union members want a raise, and to restore cost-of-living adjustments to keep up with inflation.
The UAW is also wary that chip shortages are giving members a pay cut, since they earn just a portion of their normal wage when factories are idled.
“Our members can’t go through another year in 2023 where there’s a shortage for multiple quarters,” said Curry, who presided over a convention of about 1,000 union members in Detroit this week.
He also said the UAW, which saw two former presidents sent to jail in the wake of a five-year federal probe into embezzlement and illegal payoffs, has corruption “under control.” A report this month from a court-appointed federal monitor said progress on ethics reforms has “remained too slow.”
“We’re doing our daily work — it’s like having two jobs,” said Curry, who will face reelection this fall.
“We’re going to continue to work with the monitor to make sure we achieve expectations the monitor has, but more importantly, expectations we have for ourselves internally.”
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