Jon Weinberg is a student at Harvard Law School.
Friday was a big day for the United Auto Workers, who ratified new four-year labor agreements with General Motors and Ford after previously reaching an agreement with Fiat Chrysler. CNBC reports that the new agreement with General Motors was approved after an initial rejection by skilled trades workers. The agreement “calls for raises for all workers and the end of the two-tiered pay system, although it will take a newly hired worker eight years to reach top pay rather than the three years it used to take before 2007.” Meanwhile, the Detroit Free Press notes that Ford workers narrowly approved their agreement. Per the report, “UAW production members voted 51% in favor; skilled trades were 52% in favor and almost 92% of salaried workers voted yes.” With all of the “Big 3” automakers having new four-year agreements, labor peace is expected in the automobile industry for the foreseeable future.
The new agreements in the automobile industry could benefit workers in other industries across the country. According to Bloomberg, the agreements have the potential to lift pay standards in the auto industry and broader labor market. Since in the past decade senior auto workers have forgone raises and new auto workers have accepted lower wages, the once-significant auto worker wage premium in the labor market has almost disappeared. Accordingly, the wage increases as part of “the autoworker agreements and their potential to ripple through the economy may help provide Fed officials with an extra bit of confidence that wage inflation pressures are building.”
On the other hand, the battle over labor representation at Volkswagen’s Chattanooga plant continues. The Times Free Press reports that an anti-union group criticized the actions of the Department of Labor in a letter sent ahead of a unionization vote. The National Right to Work Defense Foundation accused the DOL of ignoring alleged labor law violations by the German union IG Metall, which is working with the United Auto Workers to unionize 164 maintenance workers. The workers will vote on unionization in early December.
According to The New York Times, a new report by food conglomerate Nestle describes widespread labor and human rights abuses in the seafood industry in Thailand. Per The Times, “the report cataloged deceptive recruitment practices, hazardous working conditions and violence on fishing boats and in processing factories. It also faulted the industry for taking insufficient steps to ensure that workers were not underage.” Furthermore, “workers sometimes went a year before receiving any wages, and some faced physical and verbal abuse if they did not meet production quotas.”
Daily News & Commentary
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December 2
Fourth Circuit rejects broad reading of NLRA’s managerial exception; OPM cancels reduced tuition program for federal employees; Starbucks will pay $39 million for violating New York City’s Fair Workweek law; Mamdani and Sanders join striking baristas outside a Brooklyn Starbucks.
December 1
California farmworkers defend state labor law, cities consider requiring companies to hire delivery drivers, Supreme Court takes FAA last-mile drivers case.
November 30
In today’s news and commentary, the MSPB issues its first precedential ruling since regaining a quorum; Amazon workers lead strikes and demonstrations in multiple countries; and Starbucks workers expand their indefinite strike to additional locations. Last week, the Merit Systems Protection Board (MSPB) released its first precedential decision in eight months. The MSPB had been […]
November 28
Lawsuit against EEOC for failure to investigate disparate-impact claims dismissed; DHS to end TPS for Haiti; Appeal of Cemex decision in Ninth Circuit may soon resume
November 27
Amazon wins preliminary injunction against New York’s private sector bargaining law; ALJs resume decisions; and the CFPB intends to make unilateral changes without bargaining.
November 26
In today’s news and commentary, NLRB lawyers urge the 3rd Circuit to follow recent district court cases that declined to enjoin Board proceedings; the percentage of unemployed Americans with a college degree reaches its highest level since tracking began in 1992; and a member of the House proposes a bill that would require secret ballot […]