UAW gears up to organize at Toyota and other nonunion automakers. In an attempt to build on its success in collective bargaining with the Detroit Three, the United Car Workers on Thursday hinted at the next phase of their campaign: organizing campaigns at nonunion U.S. car facilities, including Tesla (TSLA.O), Toyota (7203.T), and others.

UAW President Shawn Fain started his video remarks about the Stellantis (STLAM.MI) deal by pleading with Toyota employees, who on Wednesday promised raises in salary and benefits after the conclusion of the Detroit Three contract negotiations.
Fain stated, “They could have just as easily raised wages a month ago or a year ago,” about Toyota. “They did it now because the company knows we’re coming for ’em.”

He said nonunion auto workers had received raises due to the UAW’s fantastic new contracts. “Terrified auto executives across the country are rushing to give their employees raises in the hopes of fending off the UAW,” Fain stated. “The boardrooms won’t decide Toyota’s destiny. The decision will be made on the factory floor.”

Years have passed since the UAW attempted and failed to organize the nation’s nonunion car factories, most of which were established by historic Asian and European manufacturers in southern states whose “right to work” labor laws allow employees to choose whether or not to pay union dues.

Other overseas automakers are examining the recent pay increases in the car industry. Honda (7267.T) informed Reuters that it will continue to be competitive while assessing the new UAW agreements with the Detroit Three automakers.

Before Fain’s speech, Toyota stated that its employees had a history of steady employment and income due to its partnership with its plant workers. The Japanese carmaker said, “Our employees ultimately decide whether to unionize.”

Following record salary increases obtained in preliminary agreements with Stellantis, General Motors (GM.N), and Ford (F.N.), Fain has used recent video speeches to signal the union’s commitment to organize workers at nonunion automakers.

“One of our biggest goals coming out of this historic contract victory is to organize like we’ve never organized before,” Fain stated on Sunday. “When we return to the bargaining table in 2028, it won’t just be with the Big Three, but with the Big Five or Big Six.”

The UAW has received communication from workers at many nonunion car companies in the southern United States, according to UAW Region 8 head Tim Smith.

“If (Toyota workers) come calling, which they have, we’re going to educate them and be there for them,” Smith stated to Reuters.

Many calls come from Toyota’s massive assembly plant in Georgetown, Kentucky, and are being monitored by UAW employees. One of the biggest local unions in the UAW, representing Ford’s Kentucky Truck and Louisville Assembly factories, is located not far from the Toyota complex.

Smith emphasized that employees should consider their whole compensation package, not their pay rate. The union recently attempted to organize an organizing vote at Tesla’s Fremont, California, facility but was unsuccessful in getting enough support from the workforce. When G.M. and Toyota jointly owned Tesla’s Fremont facility and went by NUMMI, it was a UAW shop.

“Our vehicle plant’s Tesla workforce is able to vote union without any hindrance. could if they so desired tomorrow. However, why forgo stock options and pay union dues?” 2018 saw Elon Musk, the CEO of Tesla, tweet.

The National Labor Relations Board (NLRB) decided that the tweet breached regulations that forbid management threats against employees for endorsing unionization, based on a complaint the UAW filed about it. This year, an American appeals court maintained the NLRB decision.

GAPS IN WIDENING COSTS

From 2015 until 2020, the UAW’s attempts to organize were impeded by a federal probe into possible wrongdoing within the organization’s hierarchy. This year, Fain won the UAW leadership on the promise of comprehensive change.

Toyota’s salary increase earlier this week is consistent with the nonunion automaker’s and the Japanese automaker’s plan to fend off UAW organizers. At the Detroit Three, nonunion automakers have maintained hourly pay comparable to UAW rates. However, because they pay less for health and retirement benefits than unionized automakers, they have overall lower labor expenses. They also employ a more significant number of low-paid temporary workers.

As a result, according to Ford’s’ estimates made before the new contract agreements, the average hourly labor expenses overall at foreign manufacturers are $55 per hour, as opposed to $64 per hour under the previous UAW contract. For Tesla, hourly labor expenses in the U.S. are expected to be between $45 and $50.

If UAW employees at the Detroit Three approve deals that increase veteran workers’ compensation by 25%, reinstate cost-of-living benefits, and increase temporary workers’ pay by up to 150%, the discrepancies will become more prominent.