How UAW, Volkswagen vote could give unions 'leverage'

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The United Auto Workers (UAW) is seeking to expand its unionization efforts beyond the Detroit Big 3 automakers (STLA, GM, F). Workers at Volkswagen's (VOW.DE) plant in Tennessee are voting on unionization, a pivotal moment for the labor organization. Cornell University's Director of Labor Relations, Arthur Wheaton, provides insights into the significance of this development.

Wheaton notes that the Volkswagen vote is crucial because if the UAW can increase the number of unionized autoworkers in the United States, "it gives them more leverage at the bargaining table."

When asked about the potential impact of the Volkswagen vote on the spread of unionization to other automakers, Wheaton acknowledges that "the reality is it's going to take a lot more work" — cautioning against the expectation that "all of the other plants will immediately get majority people to say yes we want the Union."

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This post was written by Angel Smith

Video Transcript

JULIE HYMAN: The United Auto Workers Union is eyeing a significant milestone. Auto Workers at a Volkswagen plant in Tennessee are voting on union membership, a win for the UAW as it looks to spread unions beyond Detroit-owned automakers. Or it would be a win if they win. Arthur Wheaton is Cornell University director of labor studies, and he's joining us now for more on this. Art, thanks for being here. So as you look at this vote, Volkswagen, not as iconic a name as GM and Ford and the other unionized automakers in the US, but what kind of significance does this vote have?

ARTHUR WHEATON: Well, what most people don't realize is Volkswagen's actually bigger than GM and bigger than Ford, that it's a very large global company, and they've got a huge presence around the world. But yeah, it doesn't have a lot of market share in the US. It makes a big difference if the UAW can start organizing some of the foreign-owned companies here in the US, outside of just the Detroit 3.

- Art, what are the potential implications, not just in terms of the number of Toyota workers impacted here, but just in terms of the US auto industry moving forward? What could that look like?

ARTHUR WHEATON: Well, right now it's about 48% of people who make cars are unionized in the US, and about 52% non-union. So if the UAW can get a majority, and increase that number that are unionized, it gives them more leverage at the bargaining table, and they're able to say, well, this is what the UAW rate is, the others will try to pay higher to keep up with what that is to avoid a union organizing drive, so that's part of what's driving this now.