Elon Musk’s Tesla is likely to benefit from the loss of production from competitors as unionized auto workers strike against Detroit’s Big Three automakers, according to Politico.
The United Auto Workers (UAW) are striking for the fourth day Monday at three plants in Missouri, Michigan and Ohio, one for each of the Big Three automakers — Ford, General Motors and Stellantis — after contracts expired on Sept. 14 for the 146,000 unionized autoworkers. The strikes, which could increase in size to encompass more plants, give electric vehicle (EV) manufacturer Tesla a chance to gain market share on the Big Three, according to Politico. (RELATED: ‘Stupid Climate Mandates’: GOP Senators Voice Support For Auto Workers’ Strike)
“Tesla’s competitive advantage over the Detroit Three is going to widen,” Garrett Nelson, vice president of equity research at investment advisory firm CFRA Research, told Politico. Tesla already boasts lower labor-related costs than the major automakers.
Tesla does not have unionized auto workers like the Big Three, and as a result, Ford estimates its labor costs are 25% higher than Tesla’s, which could jump to 67% if the Big Three accede to the UAW’s demands, according to Politico. Biden has tried to curry favor with unions during his tenure and during the 2020 presidential election, pledging to be “the most pro-union president you’ve ever seen,” the night before voting began.
In 2021, the Biden administration invited the Big Three to the White House, snubbing Tesla, in a major EV summit, according to Politico. Jen Psaki, then- White House press secretary, hinted that the lack of UAW workers at Tesla was the reason.
The UAW is resuming talks with Stellantis Monday in continued negotiations on contracts after all three automakers were unable to reach a deal in talks over the weekend, according to Reuters. UAW President Shawn Fain said on Monday that the talks over the weekend were minimal and that “the ball is in their court.”
U-A-W! Holding the line 24/7 in Toledo, OH. #UAW Local 12.#StandUpUAW pic.twitter.com/5VPqtf4S9D
— UAW (@UAW) September 18, 2023
Analysts expect the union will target the more profitable pickup trucks from the auto manufacturers, such as Ford’s f-150, GM’s Chevy Silverado and Stellantis’ Ram, in the next phase of their partial strike, according to Reuters.
The lowest the union has offered in terms of wages was a 36% increase over the four-and-a-half-year contract, which is lower than the 20% raise the Big Three have offered, according to Reuters. The union also originally demanded a shorter work week, defined benefit pensions for more workers and security from job losses resulting from the automaker’s expansion of their EV operations.
The UAW, Tesla, Ford and GM did not immediately respond to a request to comment from the Daily Caller News Foundation, and Stellantis declined to comment.
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