The UAW quietly reached a deal with Rivian that could speed up EV-industry unionization
Freshly charged… The United Auto Workers could be uniting some more autoworkers soon. The 400K-member union is said to have struck a deal with EV-maker Rivian that’d make unionizing the company’s workforce less difficult. FYI: the NLRB is investigating Rivian over allegations of union busting. Bloomberg reported that Rivian agreed to take a neutral stance in future organization efforts, as long as they happen once the company reaches profitability.
Could be a minute: Rivian has never reported a quarterly adjusted profit. Last quarter, the electric SUV and truck maker lost $39K per car sold (up about $7K from the previous q). In October, it slashed its annual production target by 10K vehicles.
Greasing the wheel: The neutrality agreement is said to have helped Rivian secure a conditional $6.6B loan from the US gov’t to build a new factory in Georgia.
Lane change… The agreement signals a shift in the relationship between Rivian and the UAW, which has had its sights set outside the Big 3 carmakers for years. After securing contracts with Ford, GM, and Stellantis last year, UAW President Shawn Fain announced a $40M campaign to unionize workers at automakers including EV biggies Tesla, Rivian, and Lucid. A handful of battery plants, co-owned by big carmakers, have already moved to unionize.
Musk be watching: After the UAW’s big contract win, Tesla boosted its factory pay in an apparent effort to combat union wage arguments.
EV unionization needs a jump… Because EV motors are simpler to produce than their gas-powered counterparts and EV factories are largely located in the nonunion South, the UAW has been worried that the electric transition could lead to lower wages and fewer union jobs. As EV ownership grows, successfully organizing the industry will be vital for the union’s future.