The United Auto Workers (UAW) union has intensified its labor contract negotiations, targeting the joint venture between General Motors (GM) and LG, known as Ultium Cells LLC. The UAW aims to secure its share of the substantial funding, worth hundreds of millions of dollars, allocated to Ultium Cells through tax credits.
In its ongoing negotiations with major automakers GM, Ford, and Stellantis, the UAW is particularly focused on ensuring fair compensation for workers employed at GM and LG-operated Ultium sites. The union argues that the work environment at Ultium facilities poses greater risks compared to traditional automotive factories, yet the employees receive lower pay. While workers in engine plants earn more than $30 per hour, those at Ultium are capped at approximately $22 per hour.
Recent reports from Bloomberg shed light on a series of accidents at the Ultium plant in Lordstown, Ohio. Towards the end of June, workers had to swiftly extinguish a defective battery that had caught fire, resulting in two employees being sent to the hospital due to smoke inhalation. In May, a worker suffered minor burns to his face and missed three days of work after being exposed to toxic gas while handling a battery cell. Tragically, last year, a contractor at the same facility lost his life after being crushed by an automated crane, sustaining critical injuries.
The UAW reveals that a total of 22 workers at the Ultium plant have suffered injuries, leading to a combined 200 days of missed work. This equates to an injury rate of 2.2 incidents per hundred workers, which is double the average for battery plants. Additionally, Ultium has incurred $68,000 in fines over the past year from the Occupational Safety and Health Administration, although these fines were not related to injuries.
UAW President Shawn Fain emphasizes the urgent need for action, stating, “It’s not just about low pay; these jobs often entail dangerous conditions. This is a critical moment for us. It’s time to establish an electric vehicle industry that prioritizes the welfare of workers.”
GM is projected to receive $300 million in tax credits under President Biden’s Inflation Reduction Act this year, and the UAW argues that it is only fair for workers to be appropriately compensated.
Fain further adds, “A fair transition must include comprehensive standards for our members and future workers. Otherwise, taxpayers will continue to funnel over $1 billion annually to Ultium, despite their practice of paying poverty wages and tolerating appalling health and safety conditions.”
As negotiations unfold, the UAW remains resolute in its pursuit of improved compensation and safety measures for workers at GM and LG’s Ultium Cells facility. The outcome of these discussions will be crucial in shaping the future of the electric vehicle industry while ensuring the well-being of its workforce.
