Zinger Key Points
- An ongoing strike against three large automotive companies could be a positive for Tesla.
- The UAW president hints that Tesla could be a battle down the road.
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An ongoing battle between the United Auto Workers union and the big three Detroit automotive companies continues to trigger work stoppages and potential trouble to revenue and profits for those affected.
In the latest developments, the UAW president shared potential future plans and concerns for a company that may become the union's future target.
What Happened: The UAW is striking against automotive companies Ford Motor Company F, General Motors Company GM and Stellantis NV STLA in a contract dispute that is seeking higher pay and better benefits for union workers.
Many analysts and experts have argued that the strike could be a positive for non-union automotive companies like Toyota Motors TM and Tesla Inc TSLA.
With the likelihood of increased wages for autoworkers of the striking companies in the future, margins could be pressured and price increases necessary to combat the rising wages.
This could be a big win for a company like Tesla, which has been able to cut prices on its electric vehicles due to its scale and market share dominance in the sector.
Ford Executive Chairman Bill Ford recently spoke out and said that the UAW should work together with the company to get a deal done. In the comments, Ford also spoke out, saying the real issue wasn’t between Ford and the UAW, but instead against overseas automotive competitors and emerging Chinese companies.
UAW President Shawn Fain responded to Ford’s comments in a post on Twitter, now known as X.
“Bill Ford knows exactly how to settle this strike. Instead of threatening to close the rouge, he should call up Jim Farley, tell him to stop playing games and get a deal done, or we’ll close the Rouge for him,” Fain said.
The UAW President fought back at the notion that the strikes are against foreign companies, saying the fight is against corporate greed.
"If Ford wants to be the all-American auto company, they can pay all-American wages and benefits. Workers at Tesla, Toyota, Honda, and others are not the enemy – they’re the UAW members of the future."
Related Link: 5 Ways Tesla, Elon Musk Could Win From UAW Srikes Against Ford, GM, Stellantis
Why It’s Important: The quote from Fain could foreshadow what many have said could be the next event.
While the UAW is targeting the big three Detroit automakers currently, it could have its eyes set on Tesla next. Tesla is the only major North American automaker without a union presence.
Benzinga shared previously that the UAW might have its sights set on Tesla in the future.
“One big question after this is all over, is…when and will the UAW start to take a crack at organizing Tesla again,” Axios reporter Nathan Bomey previously told Yahoo Finance.
Thus arises the argument that, while Tesla might be thriving currently, it could face a confrontation with the UAW down the line.
Tesla CEO Elon Musk has voiced his displeasure for unions in the past, and the UAW has made limited attempts with limited success with its unionization efforts at Tesla factories.
The UAW previously accused Musk of illegally trying to prevent union organizing efforts.
Musk stands behind the belief that his workers are happy and paid well. The Tesla CEO previously invited the UAW to come to a factory and attempt to unionize the employees.
Tesla workers are known to receive high pay and also benefits like stock options that have turned into life-changing fortunes for some.
While there is no guarantee that Tesla workers will consider unionizing, hearing of significant pay increases and benefits from workers at traditional automaker companies could at least pique the interest in the short term and create an opening for the UAW to try to make headway with Tesla.
Read Next: Elon Musk Says Unions Control The Democratic Party
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