Saturday, November 11, 2023

LABOR'S PREZ

Here’s why the UAW saving this Illinois auto plant is a ‘gigantic deal’

Chris Isidore, CNN
Fri, November 10, 2023 

General Motors, Stellantis and Ford have closed dozens of US plants since the beginning of this century. Only a handful have ever been brought back to life. Now the United Auto Workers union can add one more.

That’s why US President Joe Biden attended a UAW rally in Belvidere, Illinois, Thursday, along with UAW President Shawn Fain.

Illinois is not a political battleground state like Michigan or Ohio, which have far more auto plants. But Belvidere is ground zero for the union’s successful fight to stop plant closings in its just completed tentative labor agreements with StellatisGM and Ford.

It is the site of an assembly plant that was closed in February, leaving 1,200 hourly workers either without a job or forced to transfer to another plant far away from the rural Illinois city of 25,000, about 70 miles west of Chicago.

But that plant is now due to reopen as an assembly plant in 2027, building a new midsize pickup truck. In the meantime, it will start making batteries for electric vehicles and serve as a parts depot for the company. Workers who have been laid off who can’t get one of those jobs or don’t want to move away can get partial pay in the meantime that, together with unemployment benefits, can get them more than 70% of their normal pay.

“It’s definitely unusual that a plant is brought back to life,” said Jeff Schuster, global head of automotive for GlobalData, an industry consultant. The union often will try to bring plants back during negotiations, but typically with limited success.

And that success in the just-completed labor negotiations during the strike at Stellantis is why Fain and Biden both came to Belvidere on Thursday.

“Nobody thought we could accomplish what we accomplished. Re-open Belvidere? Forget it,” Fain said during remarks Thursday.

Biden recalled two massive auto plants that GM and Chrysler used to operate in his home state of Delaware, and what happened when they closed .

President Joe Biden speaks to the United Auto Workers union in Belvidere, Illinois, on Thursday. - Evan Vucci/AP

“When they shut down, people lost their sense of pride. Neighborhoods were in real trouble. People wonder if they’re going to stick around, what was going to happen to their families,” he said. “So this opening Belvidere again is a gigantic deal as far as I’m concerned.”
‘Willing to tear apart families’

It’s a big deal for Dawn Sims, a 24-year veteran of the plant and a third-generation Chrysler worker in Belvidere, She spoke at the event with Fain and Biden, talking about the stress she and co-workers were put under when Stellantis announced plans to close the plant.

“They were willing to tear apart families, they were willing to tear apart communities,” she said.

She said that with both a son and daughter in high school, she felt she couldn’t relocate her whole family.

“To keep my job, it would mean I’d have to leave my family,” she said. “These were the tough choices we were all having to make.”

Part of the union’s success was its unusual strike strategy. The union struck all three companies together for the first time in its history, but started with strikes at only one assembly plant per company, which gave it the opportunity to add to the scope of the strike six times as it repeatedly turned up the pressure at the bargaining table.

“It was a very different tactic that seemed to work,” said Schuster.

But what really helped were record profits and/or near-record profits at the automakers. Schuster said it’s much tougher to save jobs and stop plant closings when companies are struggling, losing billions and running short on cash, or even just treading water.

The union said that the three unionized automakers, the traditional Big Three, have closed 65 plants and facilities so far this century. Some of those jobs were lost to outsourcing, either to suppliers or in some cases foreign plants, and some to automation.

Strong sales help save jobs

But much of the loss occurred due to lost market share. In 1999, data from Edmunds shows the traditional Big Three had total US sales of 11.5 million vehicles and 68% of the market. By last year, that had fallen by 51%, with US sales of just 5.7 million vehicles and only 41% of the market.

But with strong demand for cars helping fuel record car prices, the unions were in a strong position. “Record profits, record contracts” became one of its slogans on the picket lines.

Belvidere isn’t the first plant brought back to life. But it’s one of few.

In the past, just getting an automaker to drop future plans to shut down a plant was considered a win for the union.

That’s what happened with a plant in Sterling Heights, Michigan, operated by Stellantis predecessor Chrysler, which appeared slated for closing as part of its 2009 bankruptcy, and then again by 2012. But the plant has continued to operate to this day.

And it’s what happened with the last GM assembly plant in Detroit, its Hamtramck Assembly plant, that as part of the 2019 labor deal was closed in early 2020 and re-tooled to make electric pickups, reopening in November 2021.

Among the few plants that literally came back from the dead were GM assembly plants that were closed during the 2009 bankruptcy, including one in Spring Hill, Tennessee, and one in Orion Township, Michigan, that were revived as part of the 2011 labor deal.

But other plants that the union tried to save, including GM’s massive assembly plant in Lordstown, Ohio, and transmission plants in Warren, Michigan, and Baltimore have been permanently shuttered.

Biden meets with UAW president, calls for union deals across auto industry

MAX ZAHN
Thu, November 9, 2023 

President Joe Biden called for unionization across the auto industry and embraced the broader labor movement in an address to members of the United Auto Workers at a car plant in Illinois on Thursday.

Biden, who wore a red T-shirt emblazoned with the UAW logo, hailed the union workers for carrying out a 46-day strike against the automakers that ended with tentative deals last month.

"These deals are game-changers not only for UAW workers but for all workers in America," said Biden, who in September became the first U.S. president to join workers on a picket line when he visited a UAW protest in Michigan.

"I want to thank you for your commitment to solidarity," he told the workers on Thursday. "You're changing the face of the country economically."

The tentative deals, which must be ratified by union members at each of the respective carmakers, resolved an at-times contentious work stoppage that thrust UAW President Shawn Fain into the national spotlight and drew overwhelming support in public polls.

MORE: Actors union SAG-AFTRA reaches tentative deal to end monthslong strike

Tentative agreements struck with Ford, Stellantis and GM each called for a roughly 25% raise over four years, as well as significant improvements on pensions and the right to protest the closure of plants.

The event arrives roughly a year before the 2024 presidential election, which polls suggest is likely to be a repeat of the 2020 contest between Biden and former President Donald Trump.

The economy and inflation are top issues for Americans, according to an ABC News/Ipsos poll released on Sunday.

Republicans are more likely to be trusted to do a better job on these two issues, according to the poll: Americans trust Republicans to do a better job handling the economy over Democrats (35%-25%). On inflation, they trust Republicans to do a better job (35%-21%).

As part of its tentative contract ending the strike, Stellantis agreed to reopen the assembly plant in Belvidere, where Biden spoke on Thursday.

MORE: Credit card debt has reached a record high. Here's what it means for the economy.

Roughly 1,300 workers at the plant lost their jobs when the factory idled in February. Ultimately, the deal to reopen the plant could create 3,000 jobs in Belvidere.

PHOTO: President Joe Biden addresses striking members of the United Auto Workers (UAW) union at a picket line outside a General Motors Service Parts Operations plant in Belleville, Michigan, on September 26, 2023. 
(Jim Watson/AFP via Getty Images, FILE)

During contract negotiations, Biden said he called Stellantis officials to emphasize the importance of the Belvidere facility. "I got on the phone and let them know personally," the president said.

Biden commended Fain for his leadership throughout the six-week strike. "Shawn, you've done one hell of a job, pal," Biden said.

"When I called Shawn to congratulate him on this historic deal with the Big 3 automakers, he told me the credit goes to the workers," Biden added. "It doesn't hurt to have a leader with a backbone like a ramrod."

Speaking on Thursday before Biden's remarks, Fain shared his embrace. He praised Biden for the role his administration played in negotiations between the union and the carmakers. Fain and Biden met privately before speaking at the rally.

"I'm honored to be here today with the president of the United States," Fain said on Thursday. "I'm grateful for the work shown by the White House throughout this fight."

"This is a team effort," Fain added. "They went to work with us and the companies."

Biden sought to focus on the economy with the friendly crowd at the auto plant but faced a protester at the outset of the remarks who called on the White House to back a cease-fire in the Israel-Hamas war.

In recent days, Biden has urged Israeli Prime Minister Benjamin Netanyahu to impose a three-day humanitarian pause but has declined to back a cease-fire. Israel agreed to daily four-hour pauses in the fighting, the White House said on Thursday.

MORE: What caused the WeWork bankruptcy, and why does it matter?

"President Biden, you need to call for a cease-fire in Gaza," a crowd member yelled.

A chorus of boos rose up from the audience in response to the protest, but Biden called on the crowd to remain calm. "Let her go," he said. "It's OK."

Chants from the crowd then drowned out the protest. "We love Joe," they said. "We love Joe."

President Joe Biden highlights UAW strike gains in visit to Illinois plant re-opening

Doug Cunningham & Patrick Hilsman
Thu, November 9, 2023

President Joe Biden praised union workers Thursday at an event to mark the re-opening of the Belvidere, Ill., auto plant and the success of the recent UAW contract.
 Photo by Tannen Maury/UPI

Nov. 9 (UPI) -- President Joe Biden joined UAW President Shawn Fain and Illinois Gov. J.B. Pritzker Thursday to mark the re-opening of the Belvidere, Ill., auto plant and the UAW contract that won historic gains for auto workers.

The White House said Biden's trip to Illinois was meant to highlight his working-family agenda, commitment to creating good-paying union jobs and the UAW strike win that brings thousands of jobs back to the Belvidere plant.

"When ... in Belvidere, Illinois, he's going to mark the reopening of that assembly plant," White House press secretary Karine Jean-Pierre said during a press briefing Wednesday. "This reopening will create thousands of jobs, highlight the president's commitment to rehiring and retooling the EV and EV battery jobs in the same communities where auto jobs have created good-paying union jobs for decades."


Biden spoke at the Community Building Complex in Belvidere on Thursday afternoon before a scheduled stop in Chicago for a campaign reception. Biden was scheduled to return to the White House Thursday evening.

There, the president recounted his personal connections to the auto industry in his comments.


President Joe Biden praised the work of unions as he joined UAW President Shawn Fain and Illinois Gov. J.B. Pritzker Thursday to mark the re-opening of the Belvidere, Ill., auto plant and the recent UAW contract that won historic gains for auto workers. 
Photo by Tannen Maury/UPI

"My state of Delaware -- a little state -- because we've got a small population, had the highest percentage of UAW workers in the United States of America. We had the largest GM plant outside of Detroit," Biden said. "But here's the deal, I got raised on automobiles. My dad ran ... an automobile agency for a long time."

He also recounted childhood memories of how auto plant closures can affect workers and communities.


President Joe Biden praised the efforts of UAW President Shawn Fain, who was in attendance. Photo by Tannen Maury/UPI

"I grew up in neighborhoods where I know what it's like when a plant closes down. The largest General Motors plant, as I said; the largest Chrysler plant -- when they shut down, people lost their sense of pride. Neighborhoods were in real trouble. People wondered whether they were going to stick around, what would going to happen to their families," Biden said.

Biden also touted his long history with the UAW.

The UAW strike against the Detroit Three automakers won major gains for UAW members, including a 25% total wage increase over the four-year life of the new contract.
 File Photo by Bill Greenblatt/UPI

"To the members of the UAW -- you're tough, tough, tough as they come. The first outfit to ever endorse me as a 29-year-old kid when I was running for the United States Senate and have been with me my whole career," Biden said.

The president also praised UAW President Shawn Fain.


President Joe Biden praised the work of unions as he joined UAW President Shawn Fain and Illinois Gov. J.B. Pritzker Thursday to mark the re-opening of the Belvidere, Ill., auto plant and the recent UAW contract that won historic gains for auto workers. 
Photo by Tannen Maury/UPI

"You know, the fact is, this starts at the top, though, with Shawn Fain. Shawn, you've done one hell of a job, pal," Biden said.

The UAW strike against the Detroit Three automakers won major gains for UAW members, including a 25% total wage increase over the four-year life of the new contract.

During the six-week strike, Biden joined the UAW GM picket line at Willow Run, Mich., just outside of Detroit Sept. 26.

Using a bullhorn, Biden told the striking workers that they saved the automobile industry in 2008 when they made concessions as some of the automakers faced bankruptcy.

"You made a lot of sacrifices and gave up a lot," Biden said on the picket line. "The companies were in trouble. Now they are doing incredibly well and -- guess what? You should be doing incredibly well, too. You deserve a significant raise and other benefits. Let's get back what we lost."

At one point during Thursday's event in Illinois, Biden's comments were interrupted by an Israeli war protester, who shouted, "President Biden, you need to call for a ceasefire in Gaza!" The crowd booed, and Biden continued with his comments.

President Biden visits Belvidere to celebrate UAW victory in restarting plant, saving ‘the beating heart’ of a small auto town

Robert Channick, Rick Pearson, Chicago Tribune
Thu, November 9, 2023 





Eileen T. Meslar/Chicago Tribune/TNS

President Joe Biden came to Belvidere on Thursday to celebrate the restarting of the idled Stellantis plant and tout his role in supporting the United Auto Workers, whose strike negotiations made it possible.

In a speech before a jubilant crowd of union autoworkers at the Boone County community center, Biden, who became the first sitting president to join a picket line last month in Michigan, donned a red UAW/Belvidere T-shirt in a show of solidarity before delivering his address.

“The Belvidere Assembly Plant was the beating heart of this community for nearly six decades, just like it was back in Delaware, where I was raised,” Biden said. “Eight months ago, the plant idled indefinitely, 1,200 of you lost jobs. When that happens, the community loses more than jobs. They lose their sense of pride, lose their sense of being, lose their sense of dignity.”

Biden said getting Stellantis to reopen and reinvest in the Belvidere plant was a priority for him and the UAW.

Last week, Stellantis committed to investing nearly $5 billion to retool the plant for production of a new midsize truck, build an adjacent electric vehicle battery plant and create a “megahub” parts distribution center. Part of a tentative agreement to end a six-week strike by the UAW against the Big Three automakers, the plan is expected to bring thousands of jobs back to Belvidere.

The president’s visit marked the end of a long, tough year and the beginning of a new era for the 60-year-old auto plant and the small river city near Rockford. In February, Stellantis “indefinitely” idled the Belvidere Assembly Plant and laid off its last 1,200 workers after halting production of the Jeep Cherokee amid dwindling sales.

Many people in Belvidere feared it would shift from being an auto town to a ghost town.

One month later, a devastating tornado with 100 mph winds ripped through Belvidere on the last day of March, tearing the roof off the historic Apollo Theater during a packed heavy metal concert, killing one person and injuring 40, according to the National Weather Service.

The skies were much brighter Thursday for President Biden’s visit, both meteorologically and economically.

Hundreds of Belvidere auto plant workers lined up for more than a block on a closed-off downtown street Thursday morning in front of the Boone County community center ahead of the president’s remarks, basking in the sunshine and the surreal moment that few had imagined was coming.

Near the front of the long line was Steve Walters, 61, of Caledonia, a 30-year veteran of the Belvidere plant who was laid off when it shut down in February. At the time, Walters thought indefinitely idled meant forever.

“It looked pretty bleak to me,” Walters said. “I thought they were going to close the plant, I really did. Then this surprised me — they’re going to keep it open.”

A tool and die maker, Walters came to Belvidere in the mid ’90s, when the plant began building the Dodge Neon. He stayed around through the ups and downs of ownership changes, retooling and new models. And when the plant closed, he put his faith in the union and political leaders from the statehouse to the White House who pledged to reopen it.

Walters was far from alone. On Thursday, workers in red shirts took to a stage under video screens that read “President Joe Biden, Auto Plant Reopened” and “Standing With Workers,” as they waited for his arrival. Many sang along when the piped-in music began playing “Sweet Caroline” by Neil Diamond.

“Good times never seemed so good,” the workers sang with extra gusto.

Speakers included Gov. J.B. Pritzker, UAW President Shawn Fain and Local 1268 President Matt Frantzen. But they were the opening acts for Biden, whose speech made a town of 25,000 the center of a growing union movement, a presidential campaign and the media universe, at least for a few hours.

Biden was greeted with rousing applause. But even as he spoke to a friendly and receptive crowd about the importance of autoworkers and unions to the domestic economy, he couldn’t escape international tensions over the Israel-Hamas war.

Only moments into his address, a protester interrupted the president’s speech by shouting, “President Biden, you need to call for a cease-fire in Gaza.”

The protester was escorted out as the crowd booed. Afterward, the left-wing anti-war group CODEPINK claimed credit for the disruption.

The president displayed more aggressiveness and intensity in calling out and comparing himself with his predecessor and potential general election rival, Donald Trump, than he has in the past.

Biden reminded the audience he was the first-ever president to walk a picket line with striking UAW members in Belleville, Michigan, on Sept. 26, while Trump on the same day went to a nonunion battery manufacturing plant near Detroit, where he said electric vehicle manufacturing would destroy the U.S. auto industry and kill jobs.

“He said if America invests in electric vehicles, it would drive down wages. It would destroy jobs, it would spell the end of the American automobile industry. Well, like almost everything else he’s said, he’s wrong. You have proved him wrong,” Biden said to cheers.

Biden also derided Trump by name for his negative portrayal of the country.

But the president’s focus was on the UAW and the idled auto plant. Biden recounted a June meeting in Chicago with Frantzen, a 30-year veteran of the Belvidere Assembly Plant, who became president of UAW Local 1268 only three weeks earlier.

“He told me how critical it was to get that plant up and online again,” Biden said. “So, I told my team, ‘Make Stellantis know Belvidere is a priority.’ And I got on the phone and let them know personally I thought it was a priority.”

When Biden’s speech wrapped up, the autoworkers poured into the bright sunshine outside the center, reveling in the moment.

Tonya Glover, 50, an electrician apprentice from Rockford, had worked at the Belvidere Assembly Plant since transferring from a Delaware auto plant in 2009. While she was on the assembly line for years, her new role kept her at the plant until September, where she helped tear down production equipment.

“We were actually taking out robots and we were decommissioning the plant,” Glover said. “It was so sad to see. We dismantled everything.”

Glover is now set to be rehired to prep the plant for the new products headed to Belvidere.

Jannette Blake, 54, of Rockford, had been on the assembly line at the Belvidere for 24 years before she was laid off in February. A transfer from Syracuse, Blake wasn’t ready to retire, and didn’t want to move again after just purchasing a house.

“So I just hung in there,” Blake said. “And this happened. It’s amazing.”

On Thursday, Blake shared the stage with union leaders and President Biden. Afterward, she stayed to watch the president’s motorcade, reflecting on a remarkable afternoon in Belvidere and the broader implications of plant restarting.

“It’s going to be great for the community, families are going to be back together,” Blake said. “And I just got to see Joe Biden, the president of the United States. I am just in such shock, that I was literally in the building with the president and so close. That was just awesome.”

The Belvidere plant opened under the Chrysler banner in 1965, with a white Plymouth Fury II sedan the first vehicle to roll off the line. Over the years, the plant was retooled several times, and made everything from the Dodge Neon to the Chrysler New Yorker. The plant became the exclusive home for the Jeep Cherokee in 2017, with more than 5,000 workers on three shifts building the SUV at its peak.

But demand for the plant’s sole product waned, and downsizing accelerated under new owner Stellantis, which was formed by the merger of Fiat Chrysler Automobiles and Peugeot of France in January 2021.

U.S. Rep. Bill Foster, a Democrat whose 11th Congressional District includes Belvidere, was part of the multilayered political effort to get a new product for the plant. As he made his way out of the community center Thursday, Foster reflected on what the UAW victory would mean to Belvidere and the growing union movement nationally.

“This is going to be a turning point for the community of Belvidere,” Foster said. “And I think this will end up being a milestone in the development of unions and people’s attitudes toward them. This narrative that somehow unions have wrecked the economy of Illinois and the Rust Belt — try to tell that to Belvidere today.”

On Thursday night, union results were tallied and Local 1268 members voted overwhelmingly to ratify the UAW agreement with Stellantis, Frantzen said.

“It was a great day,” Frantzen said. “Definitely a reason to celebrate for the members, which they haven’t had in a long time.”


Biden to Belvidere UAW: 'You changed the face of the country'

Jeff Kolkey, Rockford Register Star
 Thu, November 9, 2023 

Auto workers sacrificed to save the automotive industry during the 2008 financial crisis, President Joe Biden told hundreds of United Auto Workers during a celebration in Belvidere Thursday.

It's only right now that the auto industry is reaping billions in profit that they get repaid with fair wages, cost of living adjustments and a nearly $5 billion investment to reopen and expand the Belvidere Assembly Plant with a new battery production facility and a $100 million parts distribution center, Biden said.

"The financial crisis was more than a decade ago, and now the auto companies are doing incredibly well," Biden said. "So auto workers should be doing incredibly well as well."

Biden traveled to the region Thursday, landing at the Chicago Rockford International Airport in Airforce One.

More: President Biden lands in Rockford to celebrate reopening of the Belvidere Assembly Plant

He joined Gov. JB Pritzker, UAW President Shawn Fain and UAW Local 1268 President Matt Frantzen for a rally at the Community Building Complex of Boone County, 111 W. First St. in Belvidere.

UAW workers, civic leaders and elected officials crowded into an area in front of the stage to celebrate a hard won agreement that will not only mean thousands of jobs in the Rockford region and new life for the Belvidere plant, but wage increases that are reverberating across the economy.

"Look folks, these deals are game changers," Biden said. "Not only for UAW workers, but for all workers in America. Just ask the folks at Toyota, which last week announced they would significantly increase wages. That's thanks to you. They had no choice because of what you did. It's a bigger thing than I think even you all realize. You changed the face of the country economically."

Gov. JB Pritzker said he was honored to celebrate with "the heroes of Belvidere UAW 1268." He said it was union members across the country that made the reopening of the Belvidere Assembly Plant possible.

"You fought for an agreement that brought it all together for working families," Pritzker said. "Higher wages, expanded benefits and more new jobs for your children and grandchildren in a growing industry. Belvidere will see thousands of good paying jobs and billions of dollars invested right here in Illinois because when our workers succeed, we all win."

UAW President Shawn Fain said he remembers the sacrifices auto workers made during The Great Recession that saved the auto industry.

He said he is grateful for Biden’s support and the advocacy of Illinois legislators and Pritzker to negotiate with Stellantis and assemble an attractive public incentive package.

But he said it was the workers themselves and the “Stand-Up Strike” that forced Stellantis' hand.

“Nobody thought we could accomplish what we've accomplished,” Fain said. “Reopen Belvidere? Forget it. Win a just transition to electric vehicle battery work? It's impossible. We were literally told it was illegal. And here we stand.”

This article originally appeared on Rockford Register Star: Biden in Belvidere says the UAW strike benefited 'all workers'

Biden backs UAW aim to unionize Tesla, Toyota


Thu, November 9, 2023 at 11:32 PM MST

STORY: U.S. President Joe Biden on Thursday backed the United Auto Workers' plans to turn their unionization efforts to carmakers Tesla and Toyota, as he sets out to shore up blue collar support ahead of next year's election.

"Wall Street didn't build America, the middle class built America. And unions built the middle class."

Speaking in Belvidere, Illinois, Biden congratulated the UAW and its leader Shawn Fain on achieving new deals with Detroit's Big Three automakers that ended a nearly 45-day strike, saying he wants it for "all autoworkers".

"These deals are game changers. Not only for UAW workers, but for all workers in America. Just ask the folks at Toyota, which last week announced it would significantly finally increase wages for their workers. They had no choice because of what you did, you helped everybody."

En route to the event, Biden told reporters that he “absolutely” supports UAW's efforts to unionize Tesla and Toyota workers.

In response to Biden's remarks, Toyota said it wants to "foster positive morale" and boost workforce productivity, adding that, "The decision to unionize is ultimately made by our team members."

Tesla did not immediately respond to a request for comment - though what Biden said on Thursday may renew friction between him and CEO Elon Musk, who has made anti-union comments before.

Meanwhile, Biden also made sure to remind the autoworkers of his long history supporting unions.

And pointed out how Republican presidential frontrunner Donald Trump visited a nonunion factory in Michigan in September, during the massive UAW strike.

The UAW has yet to endorse Biden, unlike most other labor organizations.

Although, labor leaders and Democratic officials say that endorsement is expected after the union's members approve their tentative contract deals with the Big Three.

The agreements dramatically raise salaries for auto workers and restricts use of lower paid temporary workers.

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