Auto Industry Anticipates Contentious Contract Negotiations as UAW Commences Bargaining

## UAW President Shawn Fain Vows to Win "War" Against Automakers United Auto Workers President Shawn Fain has promised a different approach to contract talks with the Detroit automakers. Fain has been successful in gaining national attention for the UAW through strategic political strategies and engaging social media messaging. He believes that the union can harness the wave of support for organized labor to defeat corporate greed and the multinational corporations of General Motors, Ford Motor, and Stellantis. Fain has declared that this is a defining moment for the union and working people, and he is prepared to go to any lengths necessary to secure fair treatment for union members. This year's negotiations are expected to be different from previous years and will likely be confrontational, costly, critical, and unprecedented. Both sides have new top bargainers who are eager to prove themselves, and union members are staunch in their belief that they will not accept any concessions. There are also concerns about the impact of the industry's transition to electric vehicles on jobs and wages. The negotiations coincide with contract talks between the Canadian union Unifor and the Detroit automakers, adding further complexity and competition for investments and jobs. Instead of the customary handshake to kick off negotiations, the union has opted for a "members' handshake" between UAW leaders and plant workers. This shift in tradition reflects the union's determination to take a new approach and challenge the status ### Conclusion: The bold and confrontational approach taken by UAW President Shawn Fain in the contract talks with Detroit automakers carries significant implications for the business landscape, particularly for new businesses entering or considering expansion in the automotive industry. Firstly, these negotiations are likely to result in increased costs and potential operational disruptions for the automakers. The UAW's determination to secure fair treatment for its members could lead to demands for higher wages, improved benefits, and job security measures. These factors could impact the financial bottom line of automakers, potentially affecting their ability to invest in new projects or ventures. Secondly, the union's focus on challenging corporate greed and advocating for workers' rights could further heighten public scrutiny and consumer sentiment towards businesses. With the UAW successfully garnering national attention through strategic political strategies and engaging social media messaging, the public's perception of companies' treatment of their employees is likely to become a significant consideration for consumers. This could influence purchasing decisions and brand loyalty, impacting the market performance of new businesses seeking to establish themselves in the automotive industry. Lastly, the negotiations' potential impact on the industry's transition to electric vehicles adds another layer of complexity for new businesses. Uncertainty surrounding job security and wages in an evolving industry could deter new entrants or lead to skilled labor shortages. Businesses operating in electric vehicle manufacturing and related sectors may face additional challenges in attracting and retaining a qualified workforce. Overall, the UAW's aggressive stance in contract negotiations has the potential to impact new businesses venturing into the automotive industry. The resulting cost increases, public perception considerations, and industry-specific challenges should be carefully evaluated by these businesses, ensuring they are prepared to navigate the evolving landscape and effectively respond to potential disruptions. Article First Published at: https://www.cnbc.com/2023/07/12/uaw-opens-auto-contract-negotiating-with-gm-ford-and-stellantis.html