In late June, a General Motors Co. Ultium electric-vehicle plant in Ohio experienced a concerning incident when workers discovered a fire.
The fire had resulted from a defective battery. Fortunately, the workers were able to extinguish the fire with the help of the local fire department.
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While there were no life-threatening injuries, two persons were sent to the hospital due to smoke inhalation, adding to the already strained relationship between the plant’s workers and management.
The United Auto Workers (UAW) union and Ultium Cells LLC, a joint venture between GM and LG Energy Solution, are currently engaged in negotiations for a labor contract.
Simultaneously, the UAW is also negotiating a new four-year pact with GM and the other traditional Detroit automakers.
The discussions involve contentious issues such as wages and safety protections, especially following multiple accidents at the plant.
The outcome of these talks holds significant implications as the US is actively developing its electric vehicle (EV) industry and will require a substantial workforce.
Automakers and battery partners are under pressure to control costs while expanding operations.
Tom Gallagher, Vice President of Operations at Ultium, expressed excitement about working with the UAW and emphasized the potential for a competitive.
He also emphasized the need for a bargaining agreement that could serve as a model for other battery cell manufacturing plants in the US.
Discussions are expected to intensify in the coming months, both at Ultium and with the three major Detroit automakers.
According to an analysis by a Bank of America analyst, there is a 90% chance of a strike targeting one of the carmakers and a possibility of a second strike at another.
The new labor deal could increase labor costs by 30%.
Negotiations between the UAW and automakers are complex due to the involvement of newer EV-focused plants like Ultium, which often operate as joint ventures with external partners.
These battery-cell plants present unique challenges in terms of safety, as they resemble chemical factories more than conventional auto-production facilities.
The UAW has reported incidents at the Ultium plant, including workers being exposed to toxic gas and witnessing unsafe handling of waste materials.
The union claims that 22 workers have suffered injuries, resulting in a total of 200 missed workdays, which exceeds the average for battery plants.
Ultium has faced fines from the Occupational Safety and Health Administration (OSHA) for non-injury claims related to safety data sheet provision.
The UAW demands that Ultium workers be included in the existing labor agreement that covers major Detroit automakers.
The union believes that joint-venture structures are being used to reduce pay for battery workers compared to those in engine plants.
However, automakers argue that these partnerships are necessary to obtain expertise.
They stand to profit from EV manufacturing, partly due to incentives provided by President Joe Biden’s Inflation Reduction Act.
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The UAW insists that a just transition in the EV industry must include standards for its members and future workers.
The union highlights the potential for taxpayers to contribute significant funds to Ultium while workers are paid inadequate wages and subjected to subpar health and safety conditions.
