Saturday, September 23, 2023

An Ohio Town Struggles Between Biden’s Clean Energy Agenda and Union Support

Jonathan Weisman
Sat, September 23, 2023 

George Goranitis, an Ultium team leader and U.A.W. bargaining representative, at the UAW Local 1112 union hall in Warren, Ohio, on Thursday, Sept. 21, 2023. 
(Justin Merriman/The New York Times)


LORDSTOWN, Ohio — In the shadow of a shuttered General Motors plant in Lordstown, far from the United Auto Workers’ picket lines, the UAW and the management of an electric vehicle battery plant are locked in a wholly different conflict.

It may not have the cachet of the national contract talks that have prompted the strikes that expanded Friday to around 40 plants and distribution centers, affecting more than 18,000 workers, but the negotiations unfolding in northeast Ohio could more directly answer one of the most burning questions facing President Joe Biden as he heads into his reelection campaign: Will the transition to a clean energy economy yield a bright future for American workers, or will it consign a large cohort of them to low-wage, minimal-benefit jobs that leave voters in some of the most critical swing states pining for an ecologically unsound but better-paid past?

UAW officials take pains to say the talks in Lordstown between the autoworkers union and Ultium Cells, a joint venture between GM and LG Energy Solution in South Korea that is building the fuel cells to power GM’s electric vehicles, are not directly linked to the strikes. But because batteries will replace much of the mechanics that consume the labor of conventional auto work, the Ultium talks could prove critical to the electric vehicle transition — and have captured the attention of Republicans and Democrats alike.

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Former President Donald Trump, the Republican front-runner, will be in Michigan on Wednesday — the day of the second primary debate — to argue that union leaders should undercut Biden’s clean energy agenda. One of his proteges, Sen. J.D. Vance, R-Ohio, specifically pointed to the struggles of Ultium workers laboring near the old GM plant.

“Up the road from the once-iconic Lordstown Assembly Complex, where 15,000 union workers once assembled millions of cars, now stands a battery plant that employs a fraction of the workers at a fraction of the wages,” he wrote in the newspaper of Toledo, Ohio, where UAW members have walked off the job at a sprawling Jeep complex. “Autoworkers at the Toledo Assembly Complex and Toledo Transmission can look to Lordstown for a cautionary tale of what Joe Biden has in store for them.”

Democrats and their union allies say the notion that an electric vehicle transition driven by the auto industry can simply be stopped is absurd.

“I love the internal combustion engine. There’s nothing like the sound of a small-block V-8 just rumbling down the street,” said Ethan Surganevic, a sheet metal worker who maintains Ultium’s heating and air-conditioning systems. “But as we progress into the future, we need some sort of renewable energy source. We need to stop relying on fossil fuels.”

But Democrats, too, have their worries.

“These workers feel betrayed because presidents of both parties, from Bush to Clinton, then Bush 2, then Obama, then Trump, have sold them out,” said Sen. Sherrod Brown, a pro-union Democrat who faces a tough reelection bid next year in Ohio. “We keep pushing the White House to do more.” Brown said Friday morning that he had encouraged Biden to join the UAW picket lines. On Friday afternoon, the president announced he would, in Michigan on Tuesday.

As the only battery plant organized by a union in the country, Lordstown Ultium is expected to produce a first-ever wage, benefit and worker safety contract, which in turn will influence labor demands in battery plants springing up all over the country.

Yet workers here feel the Biden administration has paid far too little attention to the contract negotiations. Once at full capacity, Ultium could reap tax benefits totaling $1.2 billion a year through legislation signed by the president to speed up the transition to electric vehicles. That is leverage that workers say Biden is not using.

“If this is truly something they support, they could probably back in a little more,” said Eric Manaro, 34, a crew leader in the Ultium packaging department. “I mean, they’ve never been down to the area. You know, proof to the pudding.”

George Goranitis, 33, an Ultium team leader and UAW bargaining representative, went further. “Biden and his team, I honestly truly believe they failed,” he said, adding, “There should have been certain terms and regulations when they gave this money out.”

White House officials on Friday said they were doing all they can to support UAW workers. Energy Secretary Jennifer Granholm called GM CEO Mary Barra twice to ensure a fair union election last December and pointedly did not give final approval to Ultium loan guarantees until after the vote.

“The president has made clear from the start his full commitment to fighting for electric vehicle jobs — including battery jobs — that are good-paying, safe UAW jobs that can support a family and bolster the middle class,” said Gene Sperling, Biden’s envoy to the UAW and the Detroit automakers.

But some of the most pro-union provisions in Biden’s economic agenda were stripped out of the final Inflation Reduction Act. Officials also conceded that they had not communicated their efforts well enough to reach workers like Manaro and Goranitis.

Like many workers in Lordstown, both Manaro and Goranitis are familiar with presidential politics. There may be no factory town in the United States that has been more of a political football in the past 15 years. In 2009, after he bailed out Detroit, President Barack Obama drove a Chevy Cruze on the factory floor as a victory lap. Manaro and Goranitis were there as assembly line workers. In 2018, GM shut down the factory anyway, provoking a tirade by Trump, who then engineered the sale of the plant to a startup company making electric pickup trucks.

As the plant teetered, he told workers the jobs were “all coming back.”

“Don’t move; don’t sell your house,” he counseled.

The startup, Lordstown Motors, went belly-up, filing for bankruptcy in June.

UAW union members in a Democratic region that swung solidly behind Trump are deeply split on the electric revolution in which they are key participants.

Surganevic said he was “no fan” of Trump’s. Manaro and Goranitis are. Manaro even credited the former president’s browbeating of Barra for her decision to build Ultium in Lordstown, although construction was completed well after he left office and the company denied its location had anything to do with Trump.

Biden, it seems, cannot get a break.

For all the downturns and false starts in Lordstown, it is no wonder that many in Trumbull and Mahoning counties, first hit by the steep decline of steel and then manufacturing, are viewing any new hope for the Mahoning Valley with skepticism — and that Republicans like Trump are appealing to voters by evoking a return to some halcyon days, just as he did with coal and steel.

But, said AJ Sumell, an economist at the Center for Working Class Studies of Youngstown State University, the electric vehicle transition is happening, whether Trump wants it or not.

When the GM plant finally closed for good, it was down to a single shift, with 1,600 workers. Ultium, whose plant sprawls across 2.8 million square feet and which started the year with 1,100 workers, is now at 1,400, with 1,700 expected to be working there within another year.

“Ultium Cells’ workforce is the foundation of a dynamic new industry that is transforming American transportation and leading the way to an all-EV future,” said Katie Burdette, an Ultium spokesperson.

About 600 more are working at the old GM facility, but for Taiwanese contract manufacturer Foxconn, which just started producing boutique electric tractors.

For now, though, that old GM plant is a shadow of its former self, with a scattering of cars in its vast parking lot, which is sprouting weeds, and only a fraction of the shop floor in use.

But if pay, benefits and workplace safety concerns can be put to rest at Ultium, the president might get some credit for the clean energy transition he helped set in motion from the workers actually doing it.

“This plant is going to be the pattern for everything that’s coming in the future,” said Tim O’Hara, who was the vice president of the Lordstown UAW local when the GM plant shut down.

The negotiations have already produced results, even before a final contract is reached. In late August, Ultium announced an interim agreement that gave 1,100 workers an immediate 25% pay raise and back pay ranging from $3,000 to $7,000. Sumell said that lifted hourly wages from the minimum of $16.50 to a starting wage of $20 and a top wage of about $24 — still considerably lower than the $32 that GM once paid its top earners but likely better than most battery makers springing up with huge subsidies signed into law by Biden.

The UAW still has significant beefs with Ultium, especially with what it says are unsafe working conditions that should be covered by the safety provisions of the national contract. And the talks “have a ways to go,” said Josh Ayers, the bargaining chair at UAW Local 1112.

Workers would like Biden to give the process a nudge.

“If he would come out and say these battery plants need to be unionized, need to go UAW or whatever, then we would throw our backs behind him,” Surganevic said. “But people are seeing the government threw billions of dollars in low-interest loans to the big corporation and didn’t tell them how they were supposed to spend it.”

Of Biden, he added, “I think he is playing it too safe.”

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