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.
In This Article...
Do Toyota employees belong to unions?
One of the largest labor unions of the corporation is the Toyota Motor Workers’ Union, which has 63,000 members. The union holds its yearly rally in the spring, when the majority of Japanese businesses engage labor discussions, with about 3,000 members often attending, according to Nakamaru.
Why doesn’t Toyota have a union?
Toyota has managed to prevent unionization in part by locating its manufacturing facilities in rural locations where the workforce is appreciative of their jobs and is not used to unions. In the impoverished city of Tupelo, Mississippi, Toyota will soon open a new facility.
According to William Maloney of the University of Kentucky’s Center for Labor Education and Research, “Toyota has adopted a grand strategy of establishing in smaller southern towns without a history of organizing.”
Many employees believe they have a great deal in terms of compensation and benefits, therefore they are unsure about the advantages of unionizing.
James, a Toyota employee, expressed it more plainly. Eastern Kentucky workers came from “nothing,” and they are too appreciative and afraid to complain about their unfavorable working conditions.
There are hundreds more out there, James added, so Toyota can replace them. Toyota is aware of this. They advise us to leave if we don’t like it. McDonald’s has openings.
The current four-year contract between the UAW and the Detroit manufacturers expires in September, and a summer of heated negotiations will be coming to a close, according to anti-union worker Howard. At that time, Toyota will likely announce modifications to its pay and benefits package.
“At the moment, in my opinion, the union campaigners are exhausted,” Howard stated. “I believe their campaign is over if the wage announcement this fall is positive. However, they might win more support if a large enough number of the team members find it undesirable.
Toyotas are union-built, right?
Not all automobiles made in the US or Canada are constructed by workers who are members of unions. The UAW makes the Toyota Corolla in the United States, for instance, while the Canadian model is produced in a non-union facility, and other vehicles are imported from another nation.
Toyota and Honda employees unionized?
Vehicles made by Honda, Toyota, and a number of other foreign manufacturers are produced in American plants that do not employ union labor.
“Congress should treat all EVs produced by American auto workers fairly and similarly if it is serious about combating the climate catastrophe and achieving its aim of seeing these vehicles developed in the country. We implore Congress to remove from its budget reconciliation proposal the discriminatory wording linking unionization to incentives “In a statement, Honda stated.
Tesla has a union?
There has been no communication between the union’s leadership and the electric vehicle manufacturer as a result of Elon Musk’s offer to the United Auto Workers to try and organize Tesla’s California assembly plant. The multibillionaire businessman appeared to lessen the likelihood of that by claiming that the labor union was stealing from its members.
The UAW International’s Raymond Curry said the union was aware of Elon Musk’s invitation via Twitter this month for a union vote at the Fremont, California, plant but that there hasn’t been any follow-up from the business. Curry was speaking at a briefing hosted by the Automotive Press Association in Detroit today. The National Labor Relations Board’s ruling that Tesla broke American labor rules by firing a union activist and a Musk tweet from 2018 that seemed to threaten employees with the loss of stock options if they joined the UAW remain legal challenges by Tesla, the executive added.
Curry stated, “I’ve actually never spoken to Mr. Musk or any Tesla representative.
Tesla could start moving forward with a good-faith effort, and they can show their dedication to the people at the site by dismissing their current NLRB allegations. They are currently reinstated those workers who were genuinely terminated and have an NLRB appeal pending. That would be a sincere effort, in my opinion. If they wanted to have a conversation like that.
That currently seems unlikely. Tuesday, in reaction to a report about an ex-union official pleading guilty to embezzling cash posted by a Tesla fan, Musk delivered his toughest public remarks regarding the labor movement. He tweeted, “UAW slogan: Fighting for the right to steal money from auto employees. “Unlike Tesla, which has made many employees millionaires, the UAW plundered millions from workers (via stock grants). A little but significant difference.
In California, Nevada, New York, or Texas, none of Musk’s Tesla (or SpaceX) sites are currently covered by labor unions. The union represented workers at the Fremont plant when it was a General Motors facility from the 1960s until 1984 and subsequently a GM-Toyota joint venture facility from 1984 to 2009. In order for Tesla to begin producing its Model S electric sedan by 2012, Toyota sold the enormous plant to the start-up automaker in 2010.
Tim Edmunds, a former official at a union local in the Detroit region, stole money, according to UAW auditors, according to Curry, who didn’t directly address the subject of Musk’s most recent tweets. UAW auditors then gave the information to federal investigators. He admitted that certain executives had made mistakes in the past “There have been several people who are no longer affiliated with the UAW.
“We are being open and honest with the membership as I carry out my duties as president, he said. “We definitely have reforms in place, and we keep reviewing the organization from top to bottom to ensure that the mistakes of the past do not recur.
The union currently has 372,254 members, and Curry said it is seeking to increase that number by focusing on plants run by startup EV manufacturers and new plants being developed by American automakers, including GM, Ford, and Stellantis. The UAW has failed to organize American factories run by foreign automakers such as Toyota Motor, Honda, Nissan, Hyundai, Kia, Subaru, Mercedes-Benz, BMW, Volkswagen, and Volvo Cars in addition to Tesla.
Tesla’s legal team is contesting the NLRB’s ruling. Richard Ortiz, the fired employee, hasn’t been hired back as of yet, and Musk hasn’t removed the offensive tweet as required by the NLRB. An NLRB spokesperson, Kayla Blado, stated that the organization had no further comment on Musk’s remarks.
According to the NLRB, it is unlawful for employers to obstruct workers’ attempts to form unions. This includes forbidding “union buttons, t-shirts, and other union insignia unless extraordinary circumstances necessitate them and to “convey the idea that selecting a union would be pointless.
Kia has a union?
The top Korean automakers’ plan to spend $7.09 billion on the production of electric vehicles (EVs) in the United States is being opposed by unions.
In a statement released on May 17, unionized workers from Hyundai Motor stated, “Announcing such a major investment plan without even discussing it with the union is an action that entirely disregards the 50,000 members of the union.” We acknowledge that keeping facilities overseas is vital owing to tariff concerns, but we already have enough of them.
The 30,000 unionized Kia employees are also against the investment choice and want the business to develop specific plans on how to hasten the manufacturing of EV models and hydrogen-powered cars at its local factories.
With the intention of beginning the manufacturing of their EV cars in the U.S. by the end of next year, Hyundai Motor and Kia revealed last week that they will invest a combined 8.4 trillion won in the country until 2025. The Korean manufacturers added that the funds would be used to explore technology for future mobility, such as robots and autonomous driving.
Because EV models will have a significant impact on future business, the production of EV models directly relates to job security at the auto industry.
The Niro and Soul from Kia and the Ioniq 5 from Hyundai Motor have up till now been produced at their home factories. Exports have been able to meet overseas demand. 7,410 of Hyundai Motor and Kia’s all-electric vehicles were exported to the United States last year. The Ulsan facility of Hyundai Motor produces just the Ioniq 5.
The newest expansion of the Korean automakers’ U.S. operations, they said, was in reaction to President Joe Biden’s strong support for green mobility, which is anticipated to increase EV demand there.
The unions are attempting to gain the upper hand in the next pay discussions at Hyundai and Kia.
The unionized staff at Hyundai Motor recently asked the corporation to increase base pay by 99,000 won per month and give out bonuses equal to 30% of net earnings.
In the midst of the epidemic last year, Hyundai Motor and its union reached an agreement to freeze the base salary for the first time in 11 years. The automaker has made significant progress this year, reporting 1.5 trillion won in net profit in the first quartera 175.4 percent increase year over year.