Autonomous Truck Companies Are Leaving California For Texas

Looser regulations in Texas mean self-driving truck companies are packing up for the Lone Star State.

By Andy Kalmowitz
Published Wednesday , Sept. 13, 2023

Photo: Aurora

Three autonomous trucking companies with roots in California – Kodiak Robotics, Aurora Innovations and Gatik.AI – all fled the Golden State looking for greener pastures in Texas when it came time to test their vehicles. According to Bloomberg, this sort of move was set in motion back in 2017 when lawmakers in the Lone Star State approved a legal pathway for autonomous trucks. Compared with California – a state where regulators haven’t set the rules for initial trials – the choice to head east was easy.

Regulation of autonomous vehicles is up to individual states, and about a half dozen of them allow driverless trucks as well. Texas has apparently embraced the technology. It has set up a task force to collaborate with operators and troubleshoot issues like roadside inspections and how police will respond when there’s no driver.

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Meanwhile, lawmakers in California have opposed autonomous 18-wheelers. Part of that, according to Bloomberg, is because of a “robust” union campaign led by Teamsters. There’s also the issue of California’s experience with robo-taxis in San Francisco. It’s gone less than well there with a number of crashes and other incidents. State officials have actually ordered GM’s Cruise to cut its autonomous fleet in half after one of its cars hit a fire truck.

On September 11th, the California State Senate reportedly approved a bill that would require drivers to always be present in large trucks – even if they’re being operated autonomously. The legislation now heads to Governor Gavin Newsom.

Bloomberg says there’s no guarantee that it’ll pass for a number of reasons.

A top adviser in his office wrote to the bill’s sponsors saying the proposed law “takes an inflexible approach to regulating a growing industry borne out of California’s innovation economy.”

That stance raises questions about the bill’s chances of becoming law, but there’s growing opposition to driverless trucks in the state. Unions are concerned about jobs, while proponents of the technology say it will help ease a perennial trucker shortage, especially for the long-haul routes that keep drivers away from family for long periods. And with no humans behind the wheel, rules such as limits on driving hours and a ban on drug and alcohol use will no longer apply.

[...]
Safety remains the paramount concern. Software and sensors don’t “have a gut reaction” when something goes wrong, and they can’t read the body language of a driver who’s about to cut into a lane, says Mike Di Bene, a Teamster who’s worked as a driver for three decades. “Our families are on those highways,” Di Bene says. “If you’re going unmanned, you’re going unsafe.”



According to the outlet, the trucks being tested in Texas have a much easier go of it than the cars in California. Out in Texas, the highways are mostly empty and flat, and the weather is usually favorable for visibility. It’s a much different story in SF, where taxis have to contend with, well, a city.

Bloomberg says that so far it’s been going well in Texas. Federal data reportedly shows that there have been fewer than 20 incidents in Texas, and all of them were caused by the drivers of other vehicles. Contrast that with 2021 collisions involving 18-wheelers, and you get a much different story. There were nearly a half-million collisions, killing nearly 5,800 people and injuring a further 155,000. Granted, there are a hell of a lot fewer autonomous trucks in Texas.

Still, that’s probably not enough. The outlet reports that folks within the industry need the systems to be flawless – not just better than vehicles with people behind the wheel. That’s apparently because insurers will likely balk at offering coverage unless they’re sure they will not face expensive settlements.

JALOPNIK

Household Incomes Fell in Several Key US Swing States Last Year

Alex Tanzi 
Thu, September 14, 2023 

(Bloomberg) — Household incomes fell in a third of all states nationwide last year, while just five saw median income levels improve, according US Census Bureau data.

Household incomes fell in 17 states, mostly in the upper Midwest, one-year estimates from the American Community Survey found. Michigan, Pennsylvania, and Ohio — widely considered to be swing states in the 2024 US presidential election — are among those with falling household incomes.

Florida, Alabama and Utah were among states that saw incomes rise. The majority of states were relatively unchanged last year, according to the survey.

In the US overall, median income last year was $74,755 — a decline of 0.8% from 2021 after adjusting for inflation. Incomes by state ranged from a high in New Jersey of $96,346 to a low of $52,719 in Mississippi.

The Census Bureau’s American Community Survey is an annual survey that covers a broad range of topics about social, economic, demographic, and housing characteristics of the US population.

The share of older Americans living in poverty grew in 19 states, while the poverty rate for those age 65 and over was unchanged in 31 states. No states saw a decline.

In states such as Louisiana and Mississippi, almost 15% of older people lived in poverty last year, according to the survey. Even in wealthy states like New York, close to one in eight older people were considered poor.

UAW strike: Workers at 3 plants in 3 states launch historic action against Detroit Three

Jamie L. LaReauPhoebe Wall HowardEric D. Lawrence
Detroit Free Press


UAW supporters gather outside of the Michigan Assembly plant

The United Auto Workers launched a historic strike late Thursday by targeting all three Detroit automakers at once after contract negotiations failed to land a new deal.

UAW members at three assembly plants in Michigan, Ohio and Missouri went on strike after their labor contracts expired at 11:59 p.m. The UAW confirmed that about 13,000 members across the three plants are walking the picket lines.

As the deadline for a new contract passed, cheering could be heard from inside the gates at Stellantis' Toledo Assembly Complex as cars and trucks streamed out and honking horns provided the soundtrack. At Ford Motor Co.'s Michigan Assembly in Wayne, union strikers cheered: "We love you, Shawn, we love you," when UAW President Shawn Fain arrived after midnight to join the picket line. He stayed until after 1 a.m. and told members, "I work for you."

The third plant targeted in what was branded as the first wave of walkouts was General Motors' Wentzville Assembly in Missouri. In Wayne, only the Final Assembly and Paint portion of the facility was targeted.

The strike, which the union is calling the "Stand Up Strike," is targeting specific plants of Ford, General Motors and Stellantis, which makes Chrysler, Dodge, Jeep and Fiat brands. Union leaders have said they will select new target plants to take out on strike in various waves if negotiations continue to fail to land new agreements with the auto companies. The strategy is designed to keep the automakers off-guard and leverage the union's position to secure a better contract than the offers the Detroit automakers have made so far.

"This strategy will keep the companies guessing. It will give our national negotiators maximum leverage and flexibility in bargaining. And if we need to go all out, we will. Everything is on the table," Fain said in a late night livestream to members on Facebook Live.

“No matter what, all of us need to keep organizing: Rallies, protests, red shirt days,” Fain said during the broadcast. “We must show the companies you are ready to join and stand up and fight on a moment’s notice.”


His comments came near the end of a day of last-minute bargaining that ultimately stalled. The UAW has been negotiating with all three carmakers separately, yet simultaneously, since late summer.
Automakers react in disappointment

Shortly before midnight, GM sent out a statement saying the union informed the automaker it was on strike at Wentzville Assembly as of 11:59 PM.


"We are disappointed by the UAW leadership's actions, despite the unprecedented economic package GM put on the table, including historic wage increases and manufacturing commitments," the statement said. "We will continue to bargain in good faith with the union to reach an agreement as quickly as possible for the benefit of our team members, customers, suppliers and communities across the U.S. In the meantime, our priority is the safety of our workforce.”


Stellantis also sent a statement: "We are extremely disappointed by the UAW leadership's refusal to engage in a responsible manner to reach a fair agreement in the best interest of our employees, their families and our customers. We immediately put the Company in contingency mode and will take all the appropriate structural decisions to protect our North American operations and the Company."


Ford did not immediately provide a comment.

Cheering crowds at striking plants

Just before midnight, a man in his white GMC pickup delivered firewood to the Toledo Assembly Complex for the burn barrel that was just bursting to flame. He didn’t want to give his name but said he works mornings at the plant building Jeeps and, “I’m just trying to make sure people stay warm,” he said.

Outside Michigan Assembly in Wayne, striking workers carried signs reading, “UAW on Strike” and others with the phrase, “Saving the American Dream.”

Parking lots across the street from Michigan Assembly rapidly filled as UAW members arrived cheering and chanting and singing and shouting. They carried signs and created a sea of red in their union shirts. Cars and trucks honked while passing.


When Fain arrived after the midnight deadline, an animated crowd of people quickly surrounded him and cheered. One man remarked that even at six foot four inches, he couldn’t see Fain in the crush of people surrounding the union leader.

Members shouted, “We love you, Shawn, we love you.”

Some of the handmade signs on display at Michigan Assembly: “Detroit is a union town,” “32 hours work for 40 hours pay!” and “get wise, organize.”

Not long after midnight, members in Wayne began to chant, “Mighty, mighty union, autoworker’s union.”

Retired autoworkers, members of other unions and politicians including U.S. Rep. Debbie Dingell, D-Ann Arbor, and U.S. Rep. Rashida Tlaib, D-Detroit, came out to support the strikers.

“We’re at a crossroads,” Dingell said, standing outside of the UAW Local 900’s union hall across from the plant in Wayne. Dingell was dressed head-to-toe in red, matching colors with many of those flanking Michigan Avenue on Thursday night. “These negotiations are the most important ones I’ve witnessed in my life."

'We gave up a lot'

The striking workers have their own reasons for wanting to walk out.

Dwayne Walker, 60, president of UAW Local 900, stood at the picket line in Wayne late Thursday. Local 900 has about 5500 members, he said, 4,000 of whom are now on strike at Michigan Assembly.

“Our motive is not a labor strike,” Walker said. “We’re trying to accomplish some things.”

Joel Ventimeglia, 46, of St. Clair Shores, said he inspects Bronco and Ranger vehicles on the line, and has worked for Ford at Michigan Assembly for 11 years. His reasons for walking the line are simple, “We gave up a lot a long time ago,” he said. “We just want what’s fair.”

Some of the striking workers in Wayne said they are concerned about paying for medical bills to address maladies they’ve accumulated from working such an active job.

“Plants put your body in shambles and the money they give you for retirement doesn’t go to cover the medical bills and it puts you in debt,” said Dino DeBlair, 57, of Carleton, an upfitter who adheres stickers to cars and has worked at Ford for 28 years.

DeBlair said benefits have dwindled and wages have remained stagnant for too long.

Charmaine Sanderfield, 34, of Canton, has been an assembly worker at the plant in Wayne for nearly four years. She said “record-breaking” profits should benefit workers, too. “It’s been a long time coming: It’s time to give us rightfully what’s ours,” she said. “People break their backs, their hands, their arms and spend time away from their families to build these vehicles."

Virginia Williams, a 65-year-old retired Wayne assembly worker, said she worked as a laborer for 28 years and is now chair pro tem of Romulus’ City Council. Williams retired 10 years ago, but has three children and a grandson working at Ford.

“We can’t have workers making cars they can’t afford to buy,” she said. “It makes them feel angry.”

But one arguments some analysts have made is that if they give the union members all that they ask for, prices for new vehicles, especially electric cars, will have to go up.

Supplemental work is 'hell'

Back in Toledo, Leticia Lopez, 38, of Toledo has been a supplemental worker at the Toledo Assembly Complex for four years. She's one of 1,400 supplemental workers there, she said. Before that, she’d been a supplemental worker for 3 ½ years at GM.

Early Friday morning, she stood outside her plant cheering. She’s been waiting, she said, for this moment. Working as a supplemental worker at the plant is more than difficult.

“It’s hell,” Lopez said, noting that during the pandemic, when others stayed home if they needed to, supplemental workers “were stuck in here,” she said, pointing to the plant.

The mother of seven said she stays at her job for the health care, which is free, but it doesn’t come with dental or vision coverage. Her current pay is $17 an hour and she said there’s no pathway to a permanent spot.

Dawnya Ferdinandsen, 54, of Sandusky stood outside the Toledo Assembly Complex cheering on the cars and trucks as they honked and sped by.

“Blow that horn, that’s it,” she said.

Ferdinandsen works at the GM Propulsion plant in Toledo but came to the Stellantis plant in solidarity.

“They supported us when we went out,” she said, referencing the 2019 strike against GM when workers from Ford and Stellantis, then Fiat Chrysler Automobiles, would join the picketers outside the GM plants during their free time.

'Spur negotiations rather than paralyze'

Stellantis makes its popular Jeep Wrangler, Wrangler 4xe and Jeep Gladiator pickups at the Toledo Complex. At Michigan Assembly, formerly called Michigan Truck Plant, Ford builds the Ranger mid-size pickup and the Bronco SUV. Wentzville Assembly in Missouri is where GM builds the Chevrolet Colorado and GMC Canyon midsize pickups and the Chevrolet Express and GMC Savana vans.

"At this point, the three assembly plants that will walk out are a dramatic shot across the bow," said labor expert Harley Shaiken, professor emeritus at the University of California-Berkeley. "The closure creates economic pain without a wider paralysis throughout the company. It is meant to spur negotiations rather than paralyze the company."

If the tactic doesn't work to get a better offer, Shaiken said other more “strategic” plants may be struck that could increase the pressure on the automakers by crippling facilities that make engines, transmissions and other vital components.

"A GM stamping plant — the Chevrolet Metal Center in Flint — and a GM Delphi electronics plant in Flint went out on a 54-day strike in 1998 paralyzing virtually the entire corporation," Shaiken said.


The union's strategy possibly could lead to a lockout at other facilities that aren't struck but may not be able to operate with certain components, raising the spectre there that workers at those plants would suffer financial losses.

Alternatively, the union could revert to shutting all plants at a single automaker, Shaiken said.

"What puts us in uncharted waters is a number of sharply different paths open to the union to press its demands. We also have to be aware, however, that the UAW isn’t the only actor here," Shaiken said. "The automakers could begin choosing strategic options as well."

The UAW's initial strike targets are noteworthy because they affect an assembly plant at each of the three companies, said Marick Masters, a labor expert and business professor at Wayne State University.

"This action is significant enough to convey the union's resolve in escalating pressure to get a better deal than has been put on the table so far," Masters said. "By not striking critical components plants the UAW avoids painting the companies into the corner."

Ford's bargaining late into the night

Shortly after Fain's 10 p.m. Facebook address, Ford put out an update to its final day of bargaining with the union.

"At 8 p.m. this evening at Solidarity House in Detroit, the United Auto Workers presented its first substantive counterproposal to Ford a few hours from the expiration of the current four-year collective bargain agreement," Ford's statement read. "On the key economic issues that matter most to our UAW-represented employees, Ford has submitted four proposals to the UAW since Aug. 29."

Ford said its last offer was "historically generous," with "large" wage increases, cost-of-living adjustments, more paid time off, additional retirement contributions and more.

"Unfortunately, the UAW’s counterproposal tonight showed little movement from the union’s initial demands submitted Aug. 3," Ford's statement read. "If implemented, the proposal would more than double Ford’s current UAW-related labor costs, which are already significantly higher than the labor costs of Tesla, Toyota and other foreign-owned automakers in the United States that utilize non-union-represented labor."


Ford said union negotiators made clear that unless it agreed to the UAW's "unsustainable terms," it would strike at 11:59 p.m.

"Ford has bargained in good faith in an effort to avoid a strike, which could have wide-ranging consequences for our business and the economy," Ford said. "It also impacts the very 57,000 UAW-Ford workers we are trying to reward with this contract. Our hourly employees would take home nearly 60% less on average with UAW strike pay than they would from working. And without vehicles in production, the profit-sharing checks that UAW workers could expect to receive early next year will also be decimated by a significant strike.

"Ford remains absolutely committed to reaching an agreement that rewards our employees and protects Ford’s ability to invest in the future as we move through industry-wide transformation."

GM's last-minute offer

GM CEO Mary Barra said late Thursday afternoon that the automaker made a historic offer earlier to the UAW that pushes the hourly wage increase up to 20% over the life of the contract compared with 18%, which is what Fain said the company had offered a day earlier.

"We’ve worked days, nights and weekends since receiving the UAW’s demands. We have been bargaining in good faith to deliver a better package with historic wage increases and manufacturing commitments, recognizing your contributions to our company — past, present, and future," Barra said in a statement. "We are working with urgency and have proposed yet another increasingly strong offer with the goal of reaching an agreement tonight. Remember: we had a strike in 2019 and nobody won."

Fain revealed the list of "members" demands on Aug. 1 and they include:Eliminating wage tiers
A 40% wage increase over the life of the contract. The 40% signifies the increase to CEO salaries.
Restoring the cost-of-living allowance adjustments to counteract inflation
Defined benefit pension for all workers
The right to strike over plant closures
A reduced work week and more paid time off
Limiting the use of temporary workers
Increased benefits to current retirees
What is needed for a settlement

To get a tentative agreement that can be ratified by the membership, the UAW wants an offer that goes further on such critical issues as wages, workers reaching a top wage sooner, and the use of temps, Masters said.

"Something north of a 30% increase in general wages, a more expedited progression to the top tier (less than three years), and restrictions on the usage of temps will be necessary steps toward a settlement," Masters said. "Obviously, the more pay that can be put into the electronic accounts of the workers the better, and there are ways of doing so without further increasing base wages."

Early on in Facebook Live appearances to members, Fain shared the offers the Detroit carmakers proposed and he indicated they belonged in the trash because they fell short of meeting any of the union's demands. At the end of last month, he filed unfair labor practice charges against GM and Stellantis saying they were bargaining in bad faith because they had not yet made a serious offer to address the demands.

Fain has emphasized that the automakers collectively have made $21 billion in the first half of the year and billions more in recent years without giving hourly workers their "fair share" after they gave big wage concessions back in 2009 when GM and Stellantis, then called Fiat Chrysler Automobiles, were going through bankruptcy.
Lawmakers weigh in

Within minutes of the strike statements from key lawmakers started streaming in to media.

Democratic U.S. Sens. Gary Peters and Debbie Stabenow of Michigan both support the UAW members. Peters said he will walk the picket line with striking auto workers Friday at 8:15 a.m. outside the Ford Michigan Assembly Plant..

Stabenow said union workers "helped build the middle class in our country and keep our economy strong. They deserve just pay and benefits, job security, and the commitment to be treated as equal partners with our auto companies as they lead the new clean energy economy.”

U.S. Rep. Haley Stevens, a Democrat representing southwestern Michigan, said, “I stand with the men and women on the picket line and urge the automakers to accept a contract that rewards UAW workers for the contributions they’ve made and the profits they’ve built.”

Speaker of the Michigan House Joe Tate, D-Detroit registered his support for the UAW members, noting about 300,000 Michigan workers are hourly workers connected to the auto industry.

“Workers are the backbone of the American auto industry, and organized labor is a part of our state’s enduring legacy," Tate said. "Decades of hard work and leadership by unions forged a path to help ensure safe workplaces, competitive wages, and the ability to raise and support a family. They helped make the American dream a reality for generations of Michiganders."

He said Michigan’s economy benefits when workers and industry negotiate together.

U.S. Rep. Elissa Slotkin, D-Lansing, said she backs the UAW workers who are "fighting to make sure a hard day’s work means a good life for you and your family. For the last two years, we’ve passed bills to incentivize American manufacturing and bring supply chains home from places like China. But the companies that benefit from these policies need to do right by the workers who make their success possible."

Slotkin said she will join auto workers on the picket line this weekend, but hopes the strike is short and the parties can continue to negotiate to reach an agreement quickly.

More: In the last hours of bargaining, GM, Ford and Stellantis move to UAW headquarters

More:Possible UAW strike Q&A: Sticking points, company profits, how long it could last

Contact Jamie L. LaReau: jlareau@freepress.com. Follow her on Twitter @jlareauan. 

‘A spit in the face.’ Electric vehicle plans worry a Midwest auto town


Chris Isidore, CNN
Wed, September 13, 2023 


Normally a new, $2.5 billion factory, complete with 1,400 expected jobs, would be considered a good thing for a local economy.

But not the battery plant in Kokomo, Indiana.

“It’s a spit in the face,” said Gary Quirk, president of United Auto Workers Local 685.

That’s because the plant will make large batteries for electric vehicles. The plant is being built by a joint venture of Stellantis, the automaker which makes vehicles under the Jeep, Ram, Dodge and Chrysler brands, and Samsung. UAW Local 685 represents four factories that Stellantis already operates in the town: three that make transmissions, one that makes engines.

The concerns of Quirk and his fellow union members epitomize a larger struggle in the US auto industry: Electric vehicles simply need less work to make. As automakers move to electric lineups, then, many of the well-paying union jobs making engines and other parts could disappear.

That struggle is on display in the Midwest now, as the current UAW contract with the Big Three unionized automakers — General Motors, Ford and Stellantis — runs out at 11:59 pm on Thursday.

The first piece of steel for the Stellantis and Samsung joint venture EV battery plant is raised earlier this year. - Adam Nelson/Stellantis

The union is demanding job protections among its ambitious slate of bargaining goals. It says it is ready to have its 145,000 members at the three companies go on strike as early as Friday if it can’t reach a deal with the companies.

Another UAW local hall in town, one that represents workers at a Stellantis casting plant also in Kokomo, sits directly across the street from the new battery plant. That local was once the home of Shawn Fain, now the president of the UAW and the one leading negotiations with automakers that could lead to a strike later this week.

“It’s our backyard,” said Denny Butler, vice president of Local 685. “It’s ironic.”
‘Borrowed time’

The planned conversion to EVs will mean upheaval and job losses for some employees who have been working in auto plants, often for generations. EVs need neither gasoline engines nor transmissions.

The jobs in Kokomo are among those most at risk.

The EV battery plant being built by Stellantis and Samsung in Kokomo, in the background, is right across the street from one of the United Auto Workers union halls in the town where current unionized factories could be threatened by the shift to EVs.

- Chris Isidore/CNN

Kokomo is an industrial island in a seat of green farm fields in north central Indiana, between Indianapolis and South Bend. Those four Stellantis plants there employ 4,500 hourly workers and another 600 salaried staff, or better than one out of every seven non-farm jobs in the city and the surrounding area.

But now Stellantis, Ford and GM are planning all-electric futures, futures that will likely need fewer workers to build the same number of vehicles.

“We know we’re on borrowed time,” said Todd Dunsmore, who has worked at Stellantis for seven years. How does he feel about the EV transition? “I know it’ll hurt Kokomo.”

But some other members of Dunsmore’s local UAW are not as convinced that EVs are an existential threat to gas powered vehicles and their jobs. Many believe the company will decide to have other work done at the Kokomo plants, even if it no longer needs transmissions or engines. And many at the union’s Kokomo offices just doubt EVs will amount to most, let alone all, of the market.

Philip Kline has worked at one of the transmission plants in town for 27 years. His dad worked there for 30 years. He doesn’t believe that there is real demand out in the public for EVs.

Employees pull carts carrying transmission parts a transmission plant in Kokomo.

 - Daniel Acker/Bloomberg/Getty Images

“The thing that worries me is that (President Joe) Biden is rushing this,” he said.

That’s a common fear, even among those who don’t believe in EVs — that the auto industry will be forced to shift to EVs whether or not there is demand for them by car buyers.

“I don’t believe that people are ready for EVs, to be honest with you,” said Quirk. “The politicians might be ready, but I don’t believe the people are.”

“It sounds pretty good on paper. But the infrastructure isn’t set up to handle it,” said Butler. “You can spend more time charging the car, or trying to find a charger, than you do on the road.”

While EV sales are still only a fraction of vehicle sales, the automakers see growing public demand for EVs — and the need to comply with increasingly tougher environmental regulations around the world.

Even with their doubts, Kline, Quirk and Butler are nervous.

“If push comes to shove, if there are layoffs because of the EVs, the bottom line is we have no place to go,” Quirk said.

A fraction of auto plant pay

The Kokomo battery plant is still more than a year away from starting production. While it’s begun to hire some employees, it doesn’t yet have the workers who will be on the floor building the batteries.

The workers will not be Stellantis employee but employees of a separate company, the union says. Senior UAW members at Stellantis, General Motors and Ford get $32.32 an hour. The battery plant workers are likely to start at half that, Quirk said.

“It’s a fraction of what we make. Let’s face it, it’s not a livable wage,” he said.

The three unionized US automakers are all building EV battery plants. There is one plant open, an Ohio joint venture plant between GM and LG, and nine more plants planned or under construction.

In all cases the plants are joint venture with foreign battery makers. That means those workers won’t be employed by the automakers themselves — and thus, they will not be union, unless they organize.

The UAW said it doesn’t oppose plans to shift to EVs, even though by some estimates that could mean a 30% drop in jobs because EVs have fewer moving parts and need less labor to make.

But the union says it must be a “just transition” to EVs with good paying, unionized jobs for those who lose their positions due to the conversion. It says the EV plans make these talks “our generation’s defining moment.”

EVs a big issue in contract talks

It will be difficult for the union to win UAW-level wages at the battery plants. Workers at the first plant to open in Ohio did vote to join the UAW in December, and the union just won more than a 20% wage increase there. Even with the pay rise, that’s still a fraction of what workers get at union plants. The workers in Ohio will now get a starting wage of $20.50 an hour, up from the previous starting wage of $16.50 an hour. Even the top wage will be nearly 30% below top wage at a UAW plant today, let alone what it could be in the upcoming contract.

Still, winning significantly higher wages for battery plant workers at the Big Three might not be enough: The three unionized US automakers aren’t the only ones rushing to build battery plants. Another dozen are planned or under construction to serve the nonunion foreign automakers that now make most cars and trucks built in North America. Many are in the lower wage, primarily nonunion Southern states.

In Kokomo, the UAW members are bracing for a strike many are sure will start this week. Dunsmore was at the union hall on a recent Wednesday afternoon to sign up for picket line duty at one of the plants in town.

“I’ve been planning on this for a year,” he said.

U.S. auto workers launch first simultaneous strike at Detroit Three

Joseph White and David Shepardson
Updated Thu, September 14, 2023 

 May Day rally for media workers held by The NewsGuild of New York on International Workers' Day in Manhattan, New York City


By Joseph White and David Shepardson

DETROIT (Reuters) -The United Auto Workers union launched simultaneous strikes at three factories owned by General Motors, Ford and Chrysler parent Stellantis early on Friday, kicking off the most ambitious U.S. industrial labor action in decades.

The walkouts at the "Detroit Three" will halt production of the Ford Bronco, Jeep Wrangler and Chevrolet Colorado pickup truck, along with other popular models. UAW President Shawn Fain said the union will hold off for now on more costly company-wide strikes, but said all options are open if new contracts are not agreed.

Fain laid out plans for the unprecedented, simultaneous walkouts in a Facebook Live address less than two hours before the expiration of the old contract.

The walkouts capped weeks of clashes between Fain and Detroit Three executives over union demands for a bigger share of profits generated by combustion trucks, and stronger job security as automakers shift to electric vehicles.

"For the first time in our history we will strike all three of the Big Three," Fain said.

The strikes involving a combined 12,700 workers will take place at assembly plants operated by Ford in Wayne, Michigan, GM in Wentzville, Missouri and Stellantis' Jeep brand in Toledo, Ohio. They are critical to the production of some of the Detroit Three's most profitable vehicles.

Fain's decision to go with targeted walkouts could limit the cost to the union of strike pay. The UAW has a strike fund of $825 million, which pales in comparisons to billions in liquidity the automakers have built up thanks to robust profits from the trucks and SUVs UAW members build.

Stellantis has more than 90 days worth of Jeeps in stock, and has been building SUVs and trucks on overtime, according to Cox Automotive data.

But a week-long shutdown at Stellantis' Jeep plant in Toledo could cut revenue by more than $380 million, based on data from the company's financial reports.

"This is more of a symbolic strike than an actual damaging one," said Sam Fiorani, a production forecaster at Auto Forecast Solutions, who added that he had expected more in the first wave of the strike.

"If the negotiations don't go in a direction that Fain thinks is positive, we can fully expect a larger strike coming in a week or two," he said.

Fiorani estimated the limited action would stop production of about 24,000 vehicles a week. And while it targets some key brands, like the Bronco, buyers would be willing to wait, for now.

COMPANIES FEAR COST HIKES

The union has said it wants a 40% raise. The companies have offered up to 20%, but without key benefits demanded by the union. None of the Detroit Three has proposed eliminating tiered wage systems that require new hires to stay on the job for eight years to earn the same as veteran workers - a central UAW demand.

Ford said the UAW's latest proposals would double its U.S. labor costs and make it uncompetitive against Tesla and other non-union rivals. A walkout could mean that UAW profit-sharing checks for this year would be "decimated," the company said.

Stellantis responded to the union walkout by saying it had immediately put the company in "contingency mode" and would take all of the appropriate structural decisions to protect the company and its North American operations, without elaborating.

Fain said earlier this week that Stellantis had proposed shutting as many as 18 U.S. facilities.

GM said it was disappointed by the walkout, and would continue to "bargain in good faith."

Ahead of Fain's address, GM's top manufacturing executive Gerald Johnson said in a video that the UAW's wage and benefits proposals would cost the automaker $100 billion, "more than twice the value of all of General Motors and absolutely impossible to absorb." He did not detail how the union proposals would result in that cost, or over what time frame.

Fain has rejected the automakers' assertions that union demands would cost too much, saying the companies have spent billions on share buybacks and executive salaries.

Suppliers and other industries that depend on automakers and their workers could see demand and cash dry up if the UAW shut down Detroit Three's U.S. manufacturing operations. The standoff has become a political issue with President Joe Biden, facing re-election next year, prominently calling for a deal.

Biden is pouring billions in federal subsidies into expanding sales of electric vehicles. But the shift to EVs could threaten UAW combustion powertrain jobs. The union has not endorsed Biden's re-election.

"I think the Biden administration just continues to watch this slow-moving car crash as its EV strategy collides head on with unions," Wedbush analyst Dan Ives said.

UAW President Fain has taken an unorthodox approach to the negotiations, bargaining with all three Detroit automakers simultaneously. Past UAW leaders chose one company to set a contract pattern for the other two. Fain has played the companies against each other, seeking to drive up their offers.

While a deal with one or more of the automakers could come at any time, the disruption is an opportunity for non-union automakers in the United States, including Tesla, Toyota, Honda and Mercedes.

Those non-union factories, plus imported vehicles, account for more than half of the vehicles sold in the U.S. market.

A full strike would hit earnings by about $400 million to $500 million at each affected automaker per week of lost production, Deutsche Bank has estimated. Some of those losses could be recouped by boosting production schedules after a strike, but that possibility fades as a strike extends to weeks or months.

(Reporting by Joseph White in Detroit, David Shepardson in Washington, Peter Henderson in San Francisco and Mehr Bedi in Bengaluru; Editing by Jamie Freed)
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Auto workers strike after contract talks with US car giants fail


United Auto Workers union unable to agree deal with Ford, GM and Stellantis, who have seen profits and executive pay soar


Michael Sainato
@msainat1

THE GUARDIAN

Fri 15 Sep 2023

Auto workers have launched a series of strikes after their union failed to reach agreement with the US’s three largest manufacturers over a new contract, kicking off the most ambitious industrial labor action in decades.

The deadline for talks between Ford, General Motors, Stellantis and the United Auto Workers (UAW) expired at midnight on Thursday, with the sides still far apart on the union’s new contract priorities.

The strike – which marks the first time all three of the Detroit Three carmakers have been targeted by strikes at the same time – is being coordinated by UAW president Shawn Fain. He said he intended to launch a series of limited and targeted “standup” strikes to shut individual auto plants around the US.

The strikes kicked off at midnight at a General Motors plant in Wentzville, Missouri, a Stellantis plant in Toledo, Ohio, and a Ford assembly plant in Wayne, Michigan.

They involve a combined 12,700 workers at the plants, which are critical to the production of some of the Detroit Three’s most profitable vehicles including the Ford Bronco, Jeep Wrangler and Chevrolet Colorado pickup truck.

“This is our defining moment,” said Fain during a livestream on Thursday night, less than two hours before the strike was set to begin.

Fain said he would join the picket line at the Wayne plant when the action began at midnight and did not rule out broadening the strikes beyond the initial three targets. “If we need to go all out, we will.”

The UAW has a $825m strike fund that is set to compensate workers $500 a week while out on strike and could support all of its members for about three months. Staggering the strikes rather than having all 150,000 members walk out at once will allow the union to stretch those resources.

A limited strike could also reduce the potential economic damage economists and politicians fear would result from a widespread, lengthy shutdown of Detroit Three operations.

Stellantis has more than 90 days worth of Jeeps in stock, and has been building SUVs and trucks on overtime, according to Cox Automotive data.

But a week-long shutdown at Stellantis’ Jeep plant in Toledo could cut revenue by more than $380 million, based on data from the company’s financial reports.

“If the negotiations don’t go in a direction that Fain thinks is positive, we can fully expect a larger strike coming in a week or two,” said Sam Fiorani, a production forecaster at Auto Forecast Solutions.

He estimated the limited action would stop production of about 24,000 vehicles a week.

Among the union’s demands are a 40% pay increase, an end to tiers, where some workers are paid at lower wage scales than others, and the restoration of concessions from previous contracts such as medical benefits for retirees, more paid time off and rights for workers affected by plant closures.

Workers have cited past concessions and the big three’s immense profits in arguing in favor of their demands. The automakers’ profits jumped 92% from 2013 to 2022, totaling $250bn. During this same time period, chief executive pay increased 40%, and nearly $66bn was paid out in stock dividends or stock buybacks to shareholders.

The industry is also set to receive record taxpayer incentives for transitioning to electric vehicles.

Despite these financial performances, hourly wages for workers have fallen 19.3%, with inflation taken into account, since 2008.

The Biden administration is reportedly considering emergency aid for smaller supply firms to the automaker manufacturers due to the strike, and president Biden spoke to Fain on the status of negotiations on Thursday.

Ford said in a statement the UAW’s latest proposals would double its US labor costs. A walkout could mean that UAW profit-sharing checks for this year will be “decimated,” the company said.

GM and Stellantis declined to comment ahead of the midnight strike deadline.

However in an earlier video GM’s top manufacturing executive Gerald Johnson said that the UAW’s wage and benefits proposals would cost the automaker $100 billion, “more than twice the value of all of General Motors and absolutely impossible to absorb.” He did not detail how the union proposals would result in that cost, or over what time frame.

And in an appearance on CNBC on Thursday evening, Ford CEO Jim Farley also criticized the union, claiming, “there’s no way we can be sustainable as a company,” if they met the union’s wage demands.

GM CEO Mary Barra also said in a letter to employees about the status of negotiations and the company’s latest offer to the union, “Remember: we had a strike in 2019 and nobody won.”

The contract fight has garnered significant support from the public and US labor movement. Drivers represented by the Teamsters have pledged not to cross the picket line, halting deliveries of vehicles from the automakers throughout the strike. Several labor unions, environmental, racial and social justice groups have publicly announced support for the UAW in their fight for new contracts.

Taseko secures final permit for Arizona copper mine




14th September 2023
By: Mariaan Webb
Creamer Media 

Senior Deputy Editor Online

Canadian mining company Taseko Mines has received the final permit to build its 85-million-pound-a-year copper mine in Arizona.

The company on Thursday announced that the US Environmental Protection Agency (EPA) had issued the final underground injection control permit (UIC) for the Florence copper project.


“We now have one of a very few construction-ready, fully permitted copper projects in North America. With approvals in place from the Arizona Department of Environmental Quality and now the EPA, we can commence construction of the Florence Copper commercial production facility,” said Taseko president and CEO Stuart McDonald.

With procurement well advanced, the next steps would be mobilisation of contractors for the wellfield and SX/EW plant construction.


“We continue to advance discussions with potential lenders and royalty providers for the remainder of the project financing package and expect to have additional commitments in place before construction spending ramps up.”

When commercial operations begin, Florence Copper will have a yearly production capacity of 85-million pounds of copper at $1.11 per pound C1 cash costs over a 22-year mine life. Based on a March 2023 technical report for the project, which is supported by results from the successful operation of a production test facility, the project has an after-tax net present value of $930-million at a copper price of $3.75/lb.

“The Florence copper project is one of the least capital-intensive copper projects in the world and will have an environmental footprint smaller than any conventional openpit or underground mining operation of comparable size. Low water use, low energy consumption and low carbon emissions make Florence copper an exceptionally green project that will supply refined copper to the rapidly growing US domestic market,” said McDonald.

US committee recommends royalties on minerals for EVs in sweeping reform proposal

Reuters | September 12, 2023 | 

Aerial view of a dirt road at Thacker Pass Nevada. 

A federal committee on Tuesday recommended imposing royalties on US hardrock mining for the first time, a move it said could increase domestic production by providing funds for the agencies in charge of issuing new mining permits.


The proposal was part of a suite of recommendations aimed at increasing supply of the materials like lithium, cobalt and nickel that are needed for a domestic electric vehicle (EV) industry that is key to President Joe Biden’s climate agenda.

In a 168-page report, the Interagency Working Group on Mining Laws, Regulations and Permitting broadly encouraged Congress to reform the General Mining Law of 1872, which established a system that provides free and open exploration of federal mineral deposits.

In addition to recommending royalties of 4% to 8%, the interagency group advocated for moving to a system of leasing federal lands for mining and encouraging mining claimants to develop claims in a timely manner by increasing fees over time.

Such changes would put the industry on more even footing with those like oil and gas and coal.

Increased funds could both shore up agency staff needed to speed mine permitting, engage with local communities and protect taxpayers from the cost of cleaning up abandoned mines.

“Agreeing to play by the same rules that other people are playing by can help with the public perception of the mining industry,” an Interior Department official said. “Also, if a community or a state is going to receive some of the revenue from this, then that can also either lower opposition or provide funding to address some of the issues that are causing the opposition.”

Automakers, miners, and mining states like Nevada have pressed for faster, more efficient mine permitting. Some tribes have asked for greater transparency and engagement around mine planning, while others and environmentalists have called for more studies on the pollution and safety risks of hard rock mining, pushing the federal government to limit mines.

The committee is led by the Interior Department and includes representatives from the Environmental Protection Agency, the Agriculture, Energy and State departments, the White House and the Advisory Council on Historic Preservation.

(By Nichola Groom; Editing by Aurora Ellis)

A Volcano In The U.S. Could Contain The Biggest Lithium Deposit In The World

Scientists think a massive volcanic eruption left behind enough lithium at the McDermitt Caldera to power the EV transition for decades.

By José Rodríguez Jr.
Monday Sept 11,2023

The site of a former supervolcano at the Oregon and Nevada border could turn out to be the largest lithium deposit in the U.S. and, possibly, the world. New research suggests that the McDermitt Caldera could contain over 132 million tons of lithium, which is enough to meet global demand for decades. This could give the U.S. a massive boost to its EV supply chain, and from a domestic source, no less.

The amount of lithium at the caldera has the potential to dwarf that of the former largest known lithium deposit in the world, the Atacama Salt Flat in Bolivia, according to the Independent. Based on volume alone, McDermitt could yield 12 times more lithium than the Atacama Salt Flat. And, more importantly, the lithium that miners plan to extract from the caldera can be collected in a way that’s allegedly less harmful to the environment.

It’s no secret that lithium extraction is a dirty process, and that it produces a lot of harmful byproducts. The two main methods of extraction are mining lithium ore from the Earth and brine recovery. The former requires heating up rock to more than 1,000 degrees Fahrenheit using fossil fuels. And the latter is a costly, labor-intensive process that requires pumping out underground aquifers.

But due to the way the caldera formed — after a massive volcanic eruption 16 million years ago — harvesting its volcanic sedimentary lithium could be done through a third method of extraction that’s less invasive and less labor-intense. Popular Science describes it as such:

When volcanic minerals containing lithium flow into nearby valleys and react with the loose dirt, they leave behind lithium-rich sediments that require little energy and processing to separate.



The Independent cites the latest research from the scientists themselves, who add that:

“Developing a sustainable and diverse supply chain to meet lower-carbon energy and national security goals requires mining the highest-grade domestic lithium resources with the lowest waste:ore strip ratios to minimise both the volume of material extracted from the Earth,”the researchers noted in a study, published in Science Advances.

“Volcano sedimentary lithium resources have the potential to meet this requirement, as they tend to be shallow, high-tonnage deposits with low waste:ore strip ratios.”

The scientists suggest that mining in the right places will yield abundant lithium in a way that leaves little waste. It’s almost too good to be true: to happen upon the largest lithium deposit in the world right here in our own backyard. And to be able to pull most of that lithium in an allegedly less-harmful way.

The Bureau of Land Management is currently seeking public input in response to the proposal to expand lithium exploration in the McDermitt Caldera in anticipation of future mining. The proposal has already drawn criticism and protests from area tribes, including the Fort McDermitt Paiute and Shoshone and Burns Paiute, as Oregon Public Broadcasting reports.

The tribes oppose the proposed mine on the Nevada side at Thacker Pass, citing its would-be location atop sacred land. Depending on the outcome of a series of lawsuits brought by the tribes, and on whether the lithium is to be found at the McDermitt Caldera in such large quantities, mining could begin in 2026.

Tesla supplier weighs Indonesia battery metal unit IPO
Bloomberg News | September 14, 2023 | 

Credit: CNGR Advanced Material Co.

Chinese battery metals producer CNGR Advanced Material Co. is weighing an initial public offering of Indonesian assets as soon as the end of 2024, according to people familiar with the matter.


The Shenzhen-listed company is in talks with potential financial advisers for a Jakarta IPO that could raise at least $300 million, or as much as $500 million if the market is favorable, the people said. CNGR is in the process of preparing the Indonesian unit — which will include its smelter assets in the country — for listing, one of the people said, asking not to be identified as the information is private.

Indonesia’s capacity to produce nickel matte, an intermediate product that can be further refined for use in electric vehicle batteries, could jump fourfold, according to a BloombergNEF report last month. Tesla Inc. struck long-term deals last year with existing suppliers CNGR and Zhejiang Huayou Cobalt Co. that will last through 2025, in a bid to secure supplies amid intensifying competition.

Deliberations are ongoing and CNGR could decide not to proceed with an Indonesian listing, the people said. A representative for CNGR declined to comment.

CNGR has two nickel matte production lines with a combined annual capacity of 27.5 kilotons, a post on its WeChat showed. It launched its nickel matte production line in Morowali Industrial Park in October last year, according to a statement on its website, and opened a second facility in Weda Bay in January.

Indonesia’s booming IPO market this year was led by miners, as the nation’s large reserves of nickel give it an edge to supply raw materials for electric vehicle batteries. In March, PT Trimegah Bangun Persada, also known as Harita Nickel, raised about $645 million in the country’s second biggest listing this year, while PT Merdeka Battery Materials raised $610 million in the third largest listing.

(By Fathiya Dahrul, with assistance from Annie Lee)

Panama lawmakers to visit First Quantum mine amid contract debate

Reuters | September 13, 2023 | 

Cobre Panamá operation. (Image courtesy of First Quantum Minerals).

Some Panamanian members of congress will visit First Quantum’s copper mine next week, as a vote looms on a contract which would guarantee the Central American government annual income of $375 million, a lawmaker said on Wednesday.


The contract is a hot issue in Panama where opponents object to its environmental impact and permits to broaden operations.

Juan Diego Vasquez, a member of the congressional trade commission holding consultations on the contract, told Reuters the visit is scheduled for Tuesday, adding he is aiming to change it to another day so more officials can attend.

Authorities from the government of President Laurentino Cortizo have said they will take any findings from the visit into account to clear any doubts about the contract among lawmakers and the population and mull appropriate changes.

“I am going to wait for the commission to finish that process and then we will evaluate… We have always been willing to listen and improve (the contract) to the extent that it can be improved, but at this moment I would not want to get ahead,” Trade Minister Federico Alfaro Boyd told reporters on Tuesday.

Cortizo’s administration and the Canadian miner agreed on the final text for a contract to operate the key Cobre Panama copper mine in March.

Boyd told Reuters at the time he was confident the text would get the green light from authorities. First Quantum did not immediately reply to a request for comment on the contract’s future.

Panama is set to hold general elections next year. Most presidential candidates have come out in favor of the contract, but the reception has been mixed among lawmakers.

Hundreds of demonstrators gathered near Panama’s presidency to protest the contract on Wednesday, demanding more environmental protection and fewer expansion permits.

Authorities said in March the country would receive about 10 times more money with the new contract than what it was getting under the previous deal.

First Quantum paid $57 million in royalties during 2022, from Cobre Panama’s $3 billion sales revenue, according to company data.

(By Valentine Hilaire and Elida Moreno; Editing by Christian Plumb and Christopher Cushing)