Elon Musk And Tesla Have More To Do With UAW Auto Strikes Than What The Eyes Can See: Report

The influence of Elon Musk and his company, Tesla Inc. TSLA, is being felt in the ongoing auto strikes across the U.S., despite Musk’s absence from the picket lines, Wired reported. 

Tesla’s rise as the world’s most valuable automaker and the subsequent industry shift to electric vehicles (EVs) have been key triggers for the United Auto Workers (UAW) strikes. The traditional automakers of General Motors GM, Ford F, and Stellantis STLA have been restructuring operations and investing billions globally in response to Tesla’s success.

The restructuring and focus on EVs has seen a decline in the number of “green jobs,” typically lower paid and less abundant than traditional auto industry positions. This has resulted in a drop in UAW membership due to jobs being relocated outside the U.S.

Mark Barrott, an automotive analyst at Plante Moran, stated, “This strike is about electrification.”

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Legacy automakers have built their new assembly plants mainly in states known for being hostile to union organizing. Furthermore, as many of these plants are joint ventures with foreign battery companies, they are not subject to previous union contracts.

UAW president, Shawn Fain, emphasized that the transition to electric cannot leave workers behind, adding, “Workers deserve their share of equity in this economy.”

Tesla’s non-unionized labor structure and innovative manufacturing methods have spurred legacy automakers to seek cost-cutting measures and efficiencies. The company’s $45 per hour labor cost, including benefits, is significantly lower than the $63 per hour spent by the Big Three, according to industry analysts.

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