Tesla, Toyota In UAW's Crosshairs Following Detroit Contract Success: 'We've Created The Threat Of A Good Example'

The United Auto Workers (UAW) union is setting its sights on Tesla Inc. TSLA and Toyota Motor TM following successful negotiations with Detroit’s “Big Three” automakers.

What Happened: Shawn Fain, the union’s president, is planning to use the momentum from recent record contracts won after intense negotiations and labor strikes with General Motors, Ford Motor and Chrysler-parent Stellantis, to aid in expanding the union’s organizing efforts, CNBC reported.

Fain stated, “We’ve created the threat of a good example, and now we’re going to build on it.”

Such a move would significantly bolster the union’s negotiating power and membership. UAW membership has dwindled from about 700,000 members in 2001 to 383,000 at the start of this year. The UAW has previously tried, unsuccessfully, to organize foreign-based automakers operating in the U.S., such as Volkswagen and Nissan Motor.

Fain has pledged to extend beyond the “Big Three” and expand to the “Big Five or Big Six” by the time the union’s 4.5-year contracts with the Detroit automakers run out in April 2028.

See Also: Tesla CEO Elon Musk Says Cybertruck Will Have ‘Beast Mode’ And Bulletproof Option

The recent deals include a 25% wage increase, reinstatement of cost-of-living adjustments, enhanced profit-sharing payments, and other significant pay, healthcare, and workplace benefits. However, these contracts must still be ratified.

The union has reportedly received considerable interest from non-union automakers in light of these tentative agreements. Fain has targeted Toyota in recent days, following the automaker’s announcement of wage hikes at its U.S. factories. Toyota maintains that the decision to unionize is ultimately up to their team members.

The UAW has yet to gain enough support to force an organizing vote at Tesla’s facilities. Despite this, Fain believes that organizing Tesla and taking on CEO Elon Musk is “doable.”

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