Wednesday, May 29, 2024

Sid Salter: Union Push Impacts Future of State's Robust Auto Manufacturing Sector

After winning 73 percent of the vote on April 19 among workers in a Chattanooga, Tennessee Volkswagen plant to join the United Auto Workers union, organized labor leaders began to predict a growing erosion of decades of Southern state opposition to labor union membership. Specifically, union leaders began to predict victory in an upcoming union vote in Mercedes plants in Vance and Woodstock, Alabama.

But Alabama auto workers rejected the UAW with a strong 56 percent vote against the union and in doing so, demonstrated that much of the pro-union momentum predicted by the UAW in the South may well be significantly overstated.

The U.S. Bureau of Labor Statistics reported in 2023 that “union membership in the South has been declining, reporting that unionization in the South was 4.5%, which is more than 8 percentage points lower than the national average. South Carolina had the lowest union membership rate in the country at 2.3%.

“Some states in the South, like Florida, Mississippi, Virginia, and Louisiana, have seen a decline in union density. Unions in the South face many challenges, including a culture that resists collective bargaining, right-to-work laws, and political leaders who are hostile to unions,” the agency said.

Mississippi is indeed a right-to-work state by law. But that status hasn’t stopped Mississippi from finding success in developing automobile manufacturing enterprises over the last 20 years that build a half-million new vehicles annually, according to the Mississippi Development Authority.

Jennifer Safavian, president and CEO of Autos Drive America made the case for the Mississippi auto manufacturing industry’s future as additional commitments to EV manufacturing were announced: “In 2022, international automakers created 32,000 of these good-paying jobs in the Magnolia State, generating $2.1 billion in total employee compensation. According to the EIR data, Autos Drive America member companies, like Nissan and Toyota, have invested a total of $5.2 billion into the state as of last year, in addition to generating $415 million in state and local taxes.

“Numbers like these demonstrate the pivotal role international automakers have played in bolstering Mississippi’s economic and workforce growth. In Blue Springs, Mississippi — where they’ve built the Corolla for more than 10 years — Toyota employs 2,250 people and has invested $1.2 billion in local operations. But the impact extends far beyond Blue Springs, as Mississippi-based suppliers have created an additional 1,700 jobs and invested $200 million to support Toyota’s operations in the state,” Safavian wrote.

While Mississippi has enjoyed many economic development victories over the last several years not related to the auto-building industry, there is a new project in Marshall County that is related to auto-building, specifically EV truck-building.

Mississippi lawmakers quickly and near-unanimously authorized a $482 million incentive package to build a $1.9 billion electric vehicle battery plant in Marshall County. Paccar, an engine manufacturing company with an existing plant in the Mississippi Golden Triangle, Accelera by Cummins Inc., an Indiana-based engine company, and Daimler Truck, will partner to build a $1.9 billion electric vehicle battery plant on 500 acres in the Chickasaw Trails Industrial Park in Marshall County.

For good or ill, labor unions are perceived as partisan political forces. Historically, unions have affiliated with and supported Democrats and opposed Republicans. Campaign finance reports tell the tale, as unions have a history of supporting Democrats and banks and corporations have a similar history of supporting Republicans. The lines are clearly drawn at the federal level. Increasingly, those differences are spilling over into state politics as well. Regional and sectional concerns align with factional concerns in economic development in ways not seen a half-century ago.

Economic development is already fraught with intense site selection competition. The presence of unions can and often does impact site selection decisions and can steer mega-projects across state lines. Conservative right-to-work states are already predisposed to distrust unions through their legal structures. Unions still face tough sledding in the South. Whether the Chattanooga UAW vote was an anomaly – after the recent Mercedes vote in Alabama – remains to be seen.

Sid Salter is a syndicated columnist. Contact him at sidsalter@sidsalter.com.

17 comments:

Anonymous said...

Gotta hand it to Sid for still carrying the water for the Old South!

Anonymous said...

Modern day unions have destroyed America

Anonymous said...

Companies that get unions deserve unions for hos they treat their workers. Want to avoid a union? Treat your employees fairly and you will.

Anonymous said...

Unions, criminal organizations that protect drunks and drug heads who are turning out second rate services and products......

Anonymous said...

09:45 is correct. Workers vote yes in union elections when the union provides a better deal than existing management. Saw it first hand. Site management suddenly became more visible and eager to listen to the troops during the weeks leading up to a previous down vote. The cuddle fest vaporized immediately after the vote. Next time around was +90 % in favor. Not looking for a best friend in the management ranks, just consistent honesty.

Anonymous said...

9:45 who isn't treating their employees fairly? Locally, Nissan is one of the best places to work. They offer great wages and benefits, and that also spawned the first and second tier companies that provide components as part of the automotive manufacturing process. How does that compare to the big grassy field that was there before? Before they all came to Mississippi such jobs for unskilled people were rare.
Unions are parasitic - they grow their power by duping non-thinking people into believing lies and promises. They grow their wealth on dues from the same people they sell their promises to. And when their ever-increasing demands are not met, they make people who need their jobs walk away from them, just so the Union can flex its muscle.

Anonymous said...

The organizations like unions owe their continued existence to their ability to convince a naive populace of the ever-presense of the past oppression which gave rise to their organizations in the first place. Workers who are paid a fair wage and work under reasonable conditions are told they are being tortured as mere slaves of oppresive captialists who get rich while they can only aspire to a horrible "middle class" existence. The rich owners should be made share the wealth! The unions do not care that the end result is always the ultimate failure of the businesses they attack which will become uncompetitive due to unreasonable labor costs. They only care about their own
day in the sun.

Anonymous said...

Democrats love unions until they have to deal with the fallout. I recall Continental Tire originally had Jackson on the list of possible locations, until Chowkie started gum flapping about their employees needing union representation. Jackson was quickly crossed off the list, depriving the city of jobs and desperately needed tax revenue.

Yet when JTran drivers sent a list of grievances to the mayor and asked for a meeting, he couldn’t be bothered to even acknowledge them. That is, not until they failed to come to work.

Seems like every thing the mayor touches turns to shit.

Anonymous said...

May 29, 2024 at 12:25 PM, you are so right. Unions operate the same way the race hustlers operate, using the long gone past to justify their power.

Anonymous said...

Unions are great if you’re one of the union leaders pulling down a seven figure salary “representing” the rank and file.

Anonymous said...

Did Sid mention this, this show is not over!
https://apnews.com/article/uaw-mercedes-alabama-00c0ec401d18f6a82d9b56bf71543f30

Anonymous said...

The USW has been corrupt for decades. Their leadership often supports candidates that have political positions that are contrary to the workers’ best interests. If Biden has his way, most auto plants will close in the next 20 years and we will be buying our vehicles (EVs) from China. Yet union bosses seize the dues and send the money to Democrsts.

Biden is a major threat to our Nissan and Toyota plants and all the industries her that supply or service them.

Anonymous said...

Yes, unions are sometimes corrupt. Yes, yes, they're a lot of bad this and that. But if the guise in the C-suites back at Corporate could be trusted to deal fairly with the working man from now till the end of time, I'd be one of those trashing unions, advocating their abolishment.

But that ain't never going to happen, is it, Mr. CEO?

Sure, Peckerwood, go negotiate your pay and benefits with Mr. CEO of Multi-billion Dollar Conglomerate, Inc. He's got his door open, just waiting for you to drop by.

Anonymous said...

VW voted in the union on the 3rd vote.

At Mercedes, a 44% vote on the first try is pretty darn good.

The UAW has set up shop in Bama, and it is a matter of time before the second vote - I'd guess 3 years the UAW will win. Then there are 2 more non-union shops in Bama for the UAW to attack.

Don Drane said...

Unions protect the slovenly, the sleepers, those who'd rather not report for work, employees who have no respect for authority (in fact don't recognize authority), those who refuse to follow company policy and those who gain an assignment based simply on tenure.

In that regard, unions are entirely and completely antithetical to sound management practices. The first goal of union organization and existence is to challenge the rights of management and ownership.

Failed presidential candidate Bernie Sanders has come to Mississippi at least twice to 'assist' with (failed) union organizing efforts. It's not become apparent why a double handful of black preachers joined him in those efforts. 'Follow the money' is probably the rational since unions contribute heavily and specifically to democrat causes.

Three personal experiences:

1. A union grievance was filed against me for changing a fluorescent light bulb in my own office. The rational of the union was that only a member of the bargaining unit could perform a maintenance task.

2. After being caught twice sleeping under a staircase (while on duty), an employee was fired. A union grievance resulted in his being returned to work.

3. A shop steward was terminated for job abandonment after leaving a critically important assignment in an industrial production setting. The shop steward claimed to have 'gone down to HR to protest the treatment of a union member'.

This went all the way to a federal trial. The terminated employee was represented by a National Labor Relations Board attorney out of New Orleans. The judge 'orchestrating' the trial was an NLRB federal judge. All NLRB federal judges are prior NLRB attorneys (who represent the grievant).

All of the evidence pointed to a clear and reasonable right to terminate. The termination was overturned, and the employee was returned to work a year after termination and was subsequently elected to the office of Union President.

The National Labor Relations Board is nothing more than an extension of the ACLU and the EEOC. Just one more reason industries leave the north and often go offshore.

Every union sours the management-employee relationship in one or more ways.

If Sid could perform at a real job, he'd make a fair Union Shop Steward.



Anonymous said...

Can some of you disgruntled Nissan employees tell us what, exactly makes you unhappy at work....Other than thinking you're worth $28 bucks an hour and ain't gettin' it?

Anonymous said...

Let get rid of the police union too


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