In a game-changing move, the U.A.W. and Ford strike a groundbreaking four-year labor agreement. Amid rising industry tensions and demands for equitable pay, this deal signals a potential shift in auto industry labor relations. As the automotive world watches, what does this mean for giants like GM and Stellantis? Dive in to discover the full implications.
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As wages stabilize, employers should take note that labor negotiations and their impact are actually presenting a golden opportunity to increase their labor force.
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The US labor market, particularly in the manufacturing sector, has witnessed significant shifts in recent times. As of September 2023, the manufacturing landscape is marked by a unique juxtaposition of elevated job postings and wage growth, albeit at a decelerating pace compared to national averages.
Manufacturing workers, after enduring decades of sluggish wage growth, are now making their voices heard. The headline that captures the essence of this movement is the United Auto Workers (UAW) strike that began last month. The UAW and the Detroit Three automakers are inching closer to a deal. The public statements and postures might paint a picture of discord, but behind the scenes, progress is evident, especially with Ford and Stellantis. GM’s recent acquisition of a $6 Billion line of credit flashes signs that they are digging in. The strike is costing GM about $10 million per day. Which isn’t great. But not as bad as some predicted. The costs could stretch into Billions of dollars if the strike persists into November.
The UAW’s demands are clear: job and income security, increased compensation, pay equity, work-life balance, and the inclusion of planned electric vehicle production under the union’s national master contracts. The Big Three’s proposals have largely responded to the union’s demands, with considerations for their performance-related metrics. Since the strike began on September 15th, it’s estimated cost is around
Analysts estimate that the full cost of the union’s demands would more than double the average hourly labor costs of the companies. Investors are wary of such a steep increase, fearing a return to the financial instability of the past.
Ford and Stellantis have made significant offers to narrow the gap on key items. GM, however, remains a point of contention. The path to a final settlement requires flexibility, give-and-take, and a focus on common interests. Despite the fiery rhetoric, compromise remains possible.
However, it’s not just the manufacturing sector that’s seeing labor unrest. Michigan’s largest retail chain, Meijer, is also in the spotlight. Tens of thousands of Meijer workers, represented by the United Food and Commercial Workers Local 951, are gearing up for union contract negotiations. Their demands? Wage increases, more paid time off, and an enhanced medical plan. The sentiment is clear: after risking their lives during the pandemic, these workers feel they deserve better compensation and benefits.
John Cakmakci, the president of the UFCW Local 951, poignantly remarked, “When the pandemic hit, we were all going to work. We seem to have been forgotten now.” He emphasized that it’s time for Meijer to share its “healthy profits” with its workforce.
This sentiment is echoed across various sectors. High-profile contract negotiations are underway, including those between the SAG-AFTRA actors and artists and Hollywood studios. Along with wins from the SAG Writers Guild, UPS, and The UAW’s pressure tactics on Detroit’s Big Three, Organized Labor could be starting to have it’s moment and strengthening it’s appeal, especially as Gen-Z becomes the largest part of the workforce over the next few years.
Interestingly, the pendulum seems to be swinging rapidly towards labor. As Cakmakci noted, in his 40 years of experience, he’s never witnessed such a swift shift. This sentiment is backed by data from the Economic Policy Institute, which found that union membership in the US increased by more than 16 million workers from 2021 to 2022. However, a closer look reveals a nuanced picture: while more jobs were unionized, nonunion jobs were added at a faster rate, causing a slight decline in the share of workers represented by a union.
On October 4, 2023, over 75,000 unionized employees of Kaiser Permanente, a leading not-for-profit health provider in the US, initiated the largest healthcare worker strike in the country’s history. The workers, spread across states like California, Colorado, and Washington, are protesting for improved working conditions, especially in the aftermath of the pandemic. Their demands include better staffing levels, citing current shortages that jeopardize patient care and push many to their limits. The strike, which began at 6 am, is expected to last until Saturday morning. If no agreement is reached, a more extended strike might occur in November.
Despite these challenges, unions are doubling down on their efforts. They’re leveraging public support, which is near an all-time high, and the growing outrage against skyrocketing executive compensations to negotiate better deals. The willingness to strike, as demonstrated by the UFCW’s demands for “significant wage increases” and better medical plans, underscores the changing dynamics.
The labor landscape in the US, especially in Michigan, is undergoing a transformation. From manufacturing to retail, workers are demanding their rightful share of the pie. As negotiations unfold and strikes loom, one thing is clear: the voice of the worker is louder and more potent than ever before.
What ace does the Big 3 have up their sleeve to leverage their negotiations? Read our blog to see a quiet threat to Michigan’s economy that could play into the strike.
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From the historic Flint Sit-Down Strike of 1936 to the recent 2019 showdown with General Motors, explore the legacy of UAW strikes and discover how today’s strikes are shaping the future of labor relations amid the electric vehicle revolution.
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The United Auto Workers are poised to strike on September 14th. What would the fallout be from a 50 day strike? How can manufacturers recover quickly? Our new report lays out some hints from the last strike.
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This summer, 80,500 Michigan residents lost Medicaid coverage due to a national initiative mandating re-enrollment. If not addressed, many could remain uninsured.
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Michigan is poised to be the global leader in EV battery development and production over the next two decades. See our list of areas where you can level-up your skillset to be ready for these jobs of the future.
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Tom Cruise’s Mission Impossible: Dead Reckoning is in theaters and the star’s work ethic can teach many professionals and workers about endurance, focus, failures, redemption, and success.
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Your efforts to be fully staffed are being fought on two fronts. The first is trying to fill your open positions. The second is keeping the employees you’ve already hired. With nearly everyone short-staffed, chances are your existing staff is working harder and longer to get the job done. Overworked workers are picking up a lot of the slack and they are suffering from burnout.
According to the World Health Organization, burnout is a syndrome resulting from workplace stress that has not been successfully managed. Companies without systems to support the well-being of their employees have higher turnover, lower productivity, and higher healthcare costs, according to the American Psychological Association (APA). Another study by the APA claims that burned-out employees are 2.6 times as likely to be actively seeking a different job, 63% more likely to take a sick day, and 23% more likely to visit the emergency room. These numbers show burnout is a terrible enemy to your success at work.
A thousand workers were surveyed by Ipsos in early April of 2022 and the studies amplify what many managers already know: this pace of burnout is not sustainable. These charts show what is causing burnout, and what employees think would help alleviate the problem.
Burnout is being felt most by women with 52% reporting feeling burnt out.. Demographically, the highest number of those suffering from burnout remains among young workers where 53% of those aged 18-34 have started to feel the effects of burnout. These employees are prone to leave their jobs in the next 12 months, a 33% increase from August of 2021.
You get it. Everyone’s exhausted from the last couple of years. Their basic needs aren’t being met and they’re losing balance between work and everyday life. So what can you do? The Ipsos survey asked their respondents “what would help ease your burnout?”
About 70% of those surveyed said that a four-day workweek would help. Flexibility and working from home are also highly sought-after job benefits. Some businesses may be able to offer those to their employees, but many of those benefits would require a logistics reshuffling of epic proportions by most companies. Short of some of these lofty goals, there are a few things you can do right now to try and minimize burnout with your staff.
Extra breaks – Even giving an employee a couple of extra fifteen-minute breaks through the course of a week can go a long way. It shows that you are an empathic employer by giving employees a few extra mental health breaks throughout the week.
Ask the right questions – Start with smaller departments and ask, ‘If I could wave a magic wand and make your jobs easier, what would that look like?” This should help you figure out priorities of what needs to be done first to improve your staff’s workload. Employees shouldn’t be expected to have all the solutions, but they can tell you what is not working, and that can be invaluable. Don’t make assumptions. Have in-person conversations.
Solving Little Problems – Tiny little things that go wrong at work wear people down. One day, there’s coffee in the break room or the vending machine is full and the next day it is not. Burnout happens when presupposed features in our day-to-day work lives are missing or taken away. Maybe the company has spent money on something the employees didn’t ask for or even use. Employees could view such an action as impractical, a waste of money, and a poor reflection of the organization. Satisfaction and dissatisfaction are not on a continuum with one increasing as the other diminishes but are instead independent of each other. It’s important to look at each independently and work to keep the little things running smoothly.
Empathy – If an employee is missing quotas, deadlines aren’t being met, seems to be in a bad mood, or starts coming in late–it all may be signs of burnout. Keep in mind that people can have burnout in their private lives as well. That can carry over into work. Don’t assume that there isn’t burnout just because things aren’t busy at work and don’t take it personally that the work environment is leading to burnout.
Access to Resources – Burnout can cause a lot of health problems, both physical and mental. It’s important to make sure your team is connected to resources. Hopefully, you have wellness programs in place that can help your staff work out burnout issues. You should have a list of external sources that can provide support in mental and physical health. Encourage employees that are feeling burnout to utilize these services.
Take Care of Yourself – If you’re a manager feeling burnout yourself, it can be contagious. Setting a positive example of how to manage burnout can help your team understand how to deal with their own struggles. It’s ok for you to be vulnerable too. Managers are not superhuman. It’s ok to let the team know you feel the same issues as they do. Take a mental health day and let your team know it. Here’s some advice on how to deal with burnout as a manager.
The best way to stop burnout is to get in front of it. Implementing some of these action items and tips along with focusing on keeping workloads balanced can minimize the effects of burnout and create a stronger bond with your staff and improve your company culture.
