Tesla is implementing pay increases for its factory workers in the U.S., following victories by the United Auto Workers (UAW) at Detroit automakers. The UAW is seeking to organize at least one Tesla plant and is gathering signatures from workers. Tesla CEO Elon Musk has historically clashed with unions, and the company has faced challenges with unions in Europe as well. The pay increases come amid supply chain problems and production suspension in Germany, causing Tesla shares to close down 2.9%.
Southwest Airlines and its pilots' union have reached a preliminary labor agreement, marking the end of contentious negotiations. The deal, worth approximately $12 billion over five years, includes significant pay raises for pilots. This agreement makes Southwest the last major U.S. airline to secure a deal with its pilots. The contract still needs to be approved by the pilots. Other major airlines, including American, United, and Delta, have already finalized pilot deals this year, offering substantial pay increases and addressing concerns about working conditions.
Wage growth in the US has hit a two-year low, indicating that the "big post-pandemic pay increases seem to be behind us." This slowdown in wage growth suggests that the rapid recovery in the labor market may be losing momentum, raising concerns about the strength of the economic recovery.
The United Auto Workers (UAW) is conducting strike authorization votes at local unions as tensions rise between the UAW and the Big Three automakers over demands for double-digit pay increases, the elimination of a two-tier wage system, a shorter work week, and improved benefits. A Ford worker, Sara Schambers, expressed the difficulty of making ends meet and the need for better compensation. Pressure is mounting on both sides, with some workers believing a strike is likely. Ford, General Motors, and Stellantis released statements defending their positions.
The United Parcel Service (UPS) has reached out to the Teamsters union to resume negotiations in an effort to avoid a potential strike on August 1. The talks will focus on pay increases for experienced part-time workers who are currently making the same or less than new hires due to labor shortages. A strike could have a significant impact on UPS, which handles about 20 million packages a day and could cost over $7 billion. UPS pilots would also join the strike in solidarity with the workers.
Thousands of workers at US universities have gone on strike in 2023 amid new union contract negotiations in demand of pay increases that align with the effect high inflation rates have had on the cost of living. This strike surge has continued into 2023, with over 9,000 faculty staff, adjunct lecturers, and graduate workers represented by Rutgers AAUP-AFT, Rutgers Adjunct Faculty Union and AAUP-BHSNJ going on strike at three campuses of Rutgers University in New Jersey starting on 10 April. The unions reached an agreement to end the strike on 15 April, which was the first strike in the school’s 257-year history as union contract negotiations stalled after 10 months of bargaining without a contract.
