For the first time in ten years, Kia Corp. and its labor union inked a salary deal for 2021 on Monday without an industrial action taking place.
On Friday, 26,945 Kia employees cast their votes for or against wage proposals that included a baseline monthly pay raise of 75,000 won ($64.30), two months of performance-based compensation, and 5.8 million won in cash bonuses. Out of the 28,604 union members, more than 1,600 abstained.
However, the business turned down the union’s proposal that fired employees be given their jobs back and that the retirement age be raised from 60 to 65.
The last time a pay agreement between Kia and its union was agreed without a strike was in 2011.
Sales increased by 22% from January to July to 1.69 million automobiles from 1.39 million during the same period in 2017.
In an effort to increase sales, Kia said it would introduce the K8 sedan and the fully electric EV6 that is built on the EV platform developed by the Hyundai Motor Group in global markets in Europe and the US later this year.
The company that makes the Telluride SUV and the K5 sedan debuted the EV6 in the domestic market at the beginning of this month.
The union and its larger affiliate, Hyundai Motor Co., agreed to a salary agreement last month, preventing a walkout for the third year in a row.
In This Article...
Are Kia vehicles built in the union?
By purchasing goods created by UAW members, you can help the US auto industry’s high-quality union jobs.
Purchasing union-made, domestically produced goods helps the American economy as a whole by promoting the preservation of American jobs. In the US, 3.4 nonmanufacturing jobs are produced for every manufacturing job.
Check the vehicle identification number (VIN) to learn where it was manufactured before buying any vehicles. The country of the vehicle’s origin is indicated by the first character (number or letter) of the VIN.
The first two VINs were produced in Canada. The union that represents the manufacture of GM, Ford, and Chrysler products in Canada is known as Unifor.
There are factories all throughout the world that produce some automobiles. The Chevy Equinox, for instance, is produced in both Mexico and Canada. Prior to making a purchase, demand to view the VIN number!
Be aware that certain automobiles are produced in the United States and Canada by other manufacturers, such as Tesla, Nissan, Toyota, Mercedes, BMW, Hyundai, Kia, and Honda. Currently, there is no union representation for employees at those businesses. When buying a vehicle, we firmly advise customers to search for the union label. When a workplace is union-made, employees have a voice to bargain for things like pay, hours, safety, and general working conditions, which is not the case at non-union workplaces. At several of these automakers, employees have tried to form unions but have been rebuffed by their employers who have used hostile methods to prevent them from doing so.
Which automakers do not belong to a union?
In the US and Canada, there are two distinct auto industries: one is unionized at Chrysler, Ford, General Motors, NUMMI, and Mitsubishi. Toyota, Nissan, Honda, and a few more recent entrants make up the non-union sector of the automotive industry.
Many people believe that because of a union contract, unorganized facilities are less productive than organized ones. The pertinent data, however, show a completely different pattern: in the majority of instances11 out of 12union auto assembly plants are more productive than their non-union counterparts.
This is not a spin by the United Auto Workers. These are the details provided in the Harbour Report, the most widely read investigation into the productivity of auto plants.
The Harbour Report examined precisely 12 vehicle categories in which union and nonunion assembly factories competed, such as a Chrysler facility producing minivans vs a Honda plant producing a comparable product. GM’s plant making pickups against Toyota’s plant making the same kind of car. A Ford car facility competing with Toyota and Honda car plants.
Members of the UAW and the Canadian Auto Workers took first place and exceeded the opposition in 11 of those 12 categories.
In the title of the Harbour Report’s first page, it is stated that “Toyota leads the six largest competitors in total manufacturing productivity.” In this case, the facts in the main body of the report do not support the title.
Why? because the size and complexity of the manufactured cars are not taken into account when calculating “total manufacturing productivity.” For instance, a Toyota Camry may be produced in fewer hours than a Chrysler minivan. Among other characteristics, a minivan has three rows of seating whereas a Camry only has two. Therefore, building a minivan requires extra wiring, installation, and fitting.
Due to management choices influenced by market preferences, Chrysler, Ford, and GM produce more large vehicles than Honda, Nissan, and Toyota, including minivans, pickup trucks, and sport utility vehicles. That does not imply that unionized businesses are less effective. It simply indicates that they have decided to produce cars that require longer to make.
Consider it this way: Toyota would create more Tundras and fewer Camrys if Tundras were selling more than Camrys.
This shift would add extra hours to Toyota’s overall production schedule because Harbour figures show that it takes more over 26 hours to make a Tundra and just over 19 hours to make a Camry. That would just illustrate the outcome of a decision to build a different mix of vehicles, not that Toyota had suddenly become a less effective firm.
Observing what transpires when they produce the same type of car is the only effective approach to compare the relative efficiency of factories run by various businesses. The results of Harbour’s analysis favor union plants.
The outstanding productivity rankings attained by UAW and CAW facilities are a testament to the dedication of our members. Additionally, it is a celebration of democracy in action.
Undoubtedly, some clauses in collective bargaining agreements need time to take effect. It’s time well spent, though. Employees truly take ownership of their job and work processes when they are given a voice in decisions that have an impact on their daily life.
In one of the most competitive industrial settings in the world, that translates into quantifiable efficiency and top-tier performance.
Undoubtedly, the men and women who work on assembly lines put in a full day of arduous labor to create a high-quality product in an efficient manner. They can be proud of the findings of the Harbour Report. However, they are also aware that this year’s report is past and that whatever they do now will be reflected in the report for the following year.
Hyundai has a labor union?
WASHINGTON (AP)
President Joe Biden and Democrats in Congress want to give American automakers with unionized workers an advantage in the rapidly growing electric vehicle market. This has sparked vocal opposition from other countries’ trade partners and Republicans who fear that domestic manufacturers will be at a disadvantage.
Numerous initiatives aimed at reducing U.S. emissions and reducing global warming are included in the $1.85 trillion spending bill that Democrats are attempting to pass through Congress. It includes incentives to speed up the switch to electric vehicles, which account for a modest but quickly expanding market share.
If passed, the law would offer consumers who purchase electric vehicles a $7,500 tax credit through the year 2026. Only purchases of electric vehicles made in the United States are eligible for the credit starting the next year. If the car is produced at a U.S. facility that operates under a collective bargaining agreement negotiated by a union, the base credit increases by $4,500. Only the Ford Motor Company, Stellantis NV, and General Motors Co. vehicle facilities are eligible.
“In a speech he gave last month at a UAW job training facility, Biden declared, “I want those jobs here in Michigan, not halfway over the world.”
The union-friendly amendment is raising eyebrows both domestically and abroad, putting to the test the Democratic Party’s dedication to the labor-friendly stance that Biden has made a centerpiece of his political persona. The clause might increase the sales of electric vehicles while hurting foreign automakers with factories in the United States that employ thousands of manufacturing workers, particularly in the South where restrictions have made it difficult to organize.
Democrats don’t back down. According to them, promoting union employment is good for the nation’s economy.
“According to Rep. Dan Kildee, D-Mich., who studies American economic history, labor unions have continuously contributed to the expansion of the middle class. “Our policies ought to be in line with our ideals. According to our beliefs, when workers have wages, benefits, and protections that not only apply to them but also set the bar for all other employees, communities and the economy are stronger.
Sen. Joe Manchin of West Virginia, a significant Democrat, though, came out against the clause on Thursday when touring a Toyota plant in his home state. Manchin was reported by Automotive News as saying that in a market economy, “You should let the product speak for itself, and maybe we’ll be able to fix that.
Manchin’s resistance to the union-friendly tax credit may be deadly in the equally divided Senate.
The credit is in conflict with U.S. trade agreements, according to recent letters to congressional leaders from ambassadors from the European Union, Canada, and South Korea “undermines the goal of trade rules, which is to ensure the free and equitable movement of commodities.
Eleven governors warned that their states’ businesses and workers will suffer as a result of the more generous tax credit for automobiles built in union factories. According to OpenSecrets, a website that tracks campaign donations, Republican lawmakers portray it as payback for the United Auto Workers, a major supporter of Democrats who contributed about $1.25 million to federal candidates in the 2020 elections, with more than 99 percent going to Democratic candidates.
Sen. John Cornyn, a Republican from Texas, said he didn’t anticipate that a more substantial tax credit for vehicles built in unions would influence car purchases in a significant way.
“Nothing about an electric vehicle created by a union makes it more environmentally friendly than a vehicle made by a nonunion, so it just seems pretty clear that it’s funding supporters. Cornyn, whose state was chosen by Tesla for a manufacturing plant as well as its new corporate headquarters, said, “I believe it’s shameful.”
“Sen. Roger Wicker, a Republican from Mississippi, whose state is home to Nissan and Toyota facilities, called it a poor idea. ” Simply put, it seems to me to be a clear gift to a political ally. There isn’t another perspective that I can see. It has a clear payout.
The tax credit, which would apply to vans, SUVs, and pickups costing less than $80,000 and automobiles costing less than $55,000, would be available to all Americans with the exception of the wealthiest.
In a statement endorsing the legislation, UAW President Ray Curry stated that it would “unionized, well-paying jobs with long-term benefits for our nation.
“Additionally, according to Curry, this structure encourages non-union manufacturers to permit free employee organizing.
In recent decades, labor unions have seen their influence dwindle, partly as a result of dwindling membership. A sit-down strike by General Motors employees in Flint in 19361937 resulted in one of the biggest triumphs for labor unions in American history, and Flint is a part of Kildee’s congressional district. The UAW membership soared from 30,000 to 500,000 in a year, while autoworker pay rose up to 300 percent.
“It completely changed the neighborhood, and we believe that everyone should have that chance, according to Kildee.
Foreign automakers have been rapidly increasing their presence in the U.S. manufacturing sector in places like Alabama, South Carolina, Tennessee, Mississippi, and Texas, where employees cannot be required to join a union as a condition of employment. There have been numerous unsuccessful attempts to unionize plants in Alabama, Mississippi, and Tennessee.
“The American autoworkers that my members employ have chosen not to unionize, so let’s keep that in mind, said Jennifer Safavian, president and chief executive officer of the trade association Autos Drive America, whose members include a dozen international manufacturers. “It is appropriate to appreciate the fact that they made that decision for themselves.
The Alabama auto production plants for Mercedes Benz, Honda, Hyundai, and Mazda-Toyota are all non-union. According to a Mercedes announcement, its Vance site would start making electric SUVs the next year. The projected $1.29 billion electric battery plant for Toyota is also up for grabs in this state.
A Chevrolet Bolt tiny electric hatchback’s beginning price would drop from roughly $32,000 to about $20,000 thanks to the combined $12,000 credit for vehicles built in American factories by unionized laborers. That is far less than the current average new car price of almost $42,000. Additionally, the vehicle is eligible for a $500 credit for batteries made in the United States.
“The tax credits are important because they increase accessibility and affordability for individuals, according to Stephanie Brinley, a car analyst for IHS Markit.
It is difficult to anticipate exactly how much of a sales increase the credit will result in. According to Brinley, a global shortage of the computer chips required to build automobiles, for instance, is anticipated to go far until 2022.
“According to Brinley, semiconductors will keep inventory under control for some time. “With incentives, it is more difficult to change that immediately.
The sheer volume of completely electric vehicles coming off the assembly lines, many of which are in the most sought-after markets in the United States, is what is most likely to have a greater influence on sales. These include full-size pickup trucks and small SUVs, two of the most common car categories. There are currently roughly 35 totally electric vehicles, but Brinley predicted the number will increase to about 150 by 2025.
IHS Markit, a research and analytics business, projects that by 2030, the sale of electric vehicles would account for 32% of all new car sales in the United States, up from the current 2% share.
Utilizes Toyota unions?
This week, while I was returning from a trip to the Bay Area in California, I couldn’t help but bemoan local news reports that Toyota was closing its sole unionized facility in the country. The factory was a Toyota and GM joint venture that opened in 1984 as an experiment for Toyota to make automobiles in the US and for GM to acquire more effective procedures from Japan. The Fremont, California-based business will lay off 4,700 employees. According to state officials in California, the ripple effect will ultimately cost the state 40,000 jobs.
On multiple levels, I find Toyota’s decision to be wholly unfair and unwarranted. First off, the automaker has profited handsomely in recent months, selling more vehicles than any other producer through the government-funded “cash for clunkers program” in the United States. Ironically, the Corolla was the most popular product and was produced in this Fremont plant. Toyota even had to hire more staff to meet the increased demand brought on by this program. Consequently, we have American auto employees who also happen to be unionized working overtime to produce cars so that this Japanese automaker may profit from a United States government subsidy, then Toyota goes and shutters the plant after the “cash for clunkers program” is done.
Second, Toyota is closing the only facility it has that is unionized, thus this is an effort to save money at the expense of the workers. The firm actually runs plants in Alabama, Indiana, Kentucky, Texas, and West Virginia, none of which are being shut down. The UAW has failed in its attempts to unionize Toyota in these additional states.
Although they “truly regret” having to take this decision, a spokeswoman for Toyota in North America stated that “over the mid-to long term, it would not be economically sustainable to retain the factory.” So, shut down the union plant because the pay and perks are marginally higher. That is awful. Ron Gettelfinger, president of the United Auto Workers, stated that the Toyota workers at the plant “deserve better than to be abandoned by this firm, which has gained so abundantly from their labor, their productivity, and their devotion to quality.” I completely concur.