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| United Auto Workers President Shawn Fain addresses delegates at the union's 2023 Special Bargaining Convention in Detroit, March 27. AP-Yonhap |
By Park Jae-hyuk
The newly elected president of the U.S. United Auto Workers (UAW) is unnerving Korean battery manufacturers by urging their joint ventures with U.S. carmakers to raise wages and guarantee job security, according to industry officials, Tuesday.
Amid growing concerns over his request having a negative impact on their earnings, the battery makers have maintained a cautious stance, considering the fact that the union has gained strong support from U.S. President Joe Biden.
"UAW is one of the most powerful stakeholders in the U.S. automotive industry, so it will continue making various requests toward the joint ventures between Korean battery makers and U.S. carmakers," a battery industry official said. "Korean battery firms have no choice but to continue making efforts to reach an agreement with the union. The management cannot conflict with the unionized workers nor neglect them."
During last Friday's interview with the Automotive Press Association in Detroit, UAW President Shawn Fain, who took office last month, rebuffed the wage scale at the first plant of Ultium Cells, the joint venture between LG Energy Solution (LGES) and General Motors.
Ultium Cells has talked with UAW about wages and labor conditions at its Ohio factory.
Earlier this year, LGES' refusal of GM's request to build its fourth plant was attributed to the Korean firm's conflict with its U.S. partner over how to respond to a unionization drive by workers at Ultium Cells' Ohio factory.
As a result, GM decided to set up another joint venture with Samsung SDI, which joined hands with Stellantis to build a factory in Kokomo, Indiana.
StarPlus Energy, the joint venture between Samsung SDI and Stellantis, however, has also drawn the ire of UAW, as the union's leaders did not learn of the construction of the Kokomo factory until the day before the announcement.
In addition, SK On, which will build a factory in Tennessee in collaboration with Ford Motor Company, is also facing pressure from the union, as Fain said the 11,000 workers that will be hired for the joint venture should hold membership in UAW.
According to foreign news outlets, Ford and GM said in statements that they look forward to working with the union. Ultium Cells also said it would work in good faith with UAW to reach an agreement.
Samsung Securities analyst Cho Hyun-ryul advised that the joint ventures should automate their factories in the long run to reduce their operating costs, given that the labor shortage in the U.S. will increase the possibility of unionization.
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