The United Automobile Workers’ (UAW) strike against the Big Three manufacturers is posing a significant challenge to President Joe Biden’s clean-energy agenda. While Biden’s legislation has attracted private-sector investment into clean-energy projects, much of that investment is going to red-leaning communities that are generally hostile to labor unions and the Democratic Party.
The UAW launched a strike at midnight, expressing concerns that the auto industry is using the shift to electric vehicles (EVs) to transition from high-paying union jobs in northern states to lower-paying, nonunion jobs in southern states. The union is also worried that federal subsidies for the EV transition are inadvertently underwriting the shift towards nonunion plants. They argue that workers should not be left behind in this equation.
To address these concerns, the Biden administration announced a suite of multibillion-dollar Department of Energy loans and grants aimed at incentivizing auto companies to convert existing, unionized plants to EV production. The administration is committed to ensuring that these jobs are good union jobs and that companies respect workers’ right to organize.
However, the challenge lies in the decisions made by auto companies and other industries in response to the legislation signed by Biden. The tax subsidies and federal grants have triggered a wave of new domestic investments in clean energy, with the auto industry alone announcing nearly $90 billion in spending on manufacturing facilities for EVs in the past two years. Most of these investments are flowing into red states with lower tax rates, electricity costs, and “right to work” laws that make it difficult for unions to organize.
The preference for red states has resulted in a surge of investment in the South, with 55% of total private investment in EVs and batteries going to the region. This shift reinforces a long-term trend of the auto industry’s center of gravity moving to the South, weakening the UAW’s position. The disparity in wages between union and nonunion regions creates a significant challenge for the UAW.
The ongoing strike by the UAW seeks a raise of about 40% over the next four years, as well as the restoration of automatic pay increases for inflation and health and retirement benefits. However, even if the union succeeds, it could incentivize the auto industry to shift more jobs to nonunion plants in the South.
The announcements by Ford and General Motors that they plan to build battery plants in Kentucky and Tennessee may signal a shift in strategy. These companies are structuring their EV-battery plants, both in the North and the South, as joint ventures with foreign partners.
Overall, the UAW strike highlights the challenges faced by Biden’s clean-energy agenda in delivering political rewards and good-paying jobs. The flow of capital into red states and the shift of the auto industry to the South pose significant obstacles to the union’s goals and the administration’s commitment to unionized, clean-energy jobs.
Original Story at www.theatlantic.com – 2023-09-15 14:08:00
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