[HN Gopher] Volkswagen workers vote overwhelmingly to join the UAW
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       Volkswagen workers vote overwhelmingly to join the UAW
        
       Author : danans
       Score  : 134 points
       Date   : 2024-04-20 06:03 UTC (16 hours ago)
        
 (HTM) web link (www.cnn.com)
 (TXT) w3m dump (www.cnn.com)
        
       | lucas_membrane wrote:
       | Volkswagen expected the plant to be unionized when they were
       | planning it, and it was OK about that. However, the local
       | political leaders in power let it be known that they would not
       | offer VW various incentives for locating the plant in TN if it
       | was to be unionized, presumably because union workers are much
       | more inclined to vote for, and unions much more inclined to
       | contribute to the opposite party. There are three other large
       | non-union auto plants in Tennessee and two in neighboring states.
       | The UAW certainly thinks that the VW plant will demonstrate the
       | advantage of collective bargaining to workers in those other
       | plants.
        
         | nytesky wrote:
         | I thought part of the attraction was "right to work" https://ww
         | w.law.cornell.edu/wex/right_to_work_state#:~:text=.... made the
         | unions far more fragile?
        
           | MithrilTuxedo wrote:
           | The theory may be premised on false beliefs about unions.
        
           | cool_dude85 wrote:
           | It does make things tougher financially for the union but
           | certainly still doable. Especially if you have a big national
           | like UAW that can step in if need be. My guess would be if
           | 70% voted in favor you'd see around that amount paying dues.
        
         | ItCouldBeWorse wrote:
         | Did the union gets seats in the board of directors - as they
         | have in germany?
        
         | Applejinx wrote:
         | If I understand correctly, German law REQUIRES labor to be
         | represented on the board, so it's interesting that they were
         | able to set up a plant in Tennessee in the first place when
         | they could not comply with German law doing so.
         | 
         | This in no way upsets Volkswagen, in other words. It's normal.
        
           | avianlyric wrote:
           | It seems to be upsetting VW's local US management[1], even if
           | their German based management might be quietly pleased with
           | this outcome.
           | 
           | [1] https://labornotes.org/blogs/2019/06/volkswagen-declares-
           | war...
        
             | jwagenet wrote:
             | Based on that article, European management seems to be
             | pushing against US unionization too (installing anti union
             | local ceo, etc)
        
             | rrr_oh_man wrote:
             | Anecdotally, I have not come across any German, Austrian,
             | or Swiss CEO who liked unions.
        
               | Rinzler89 wrote:
               | Pretty much, and that's considering unions in Europe are
               | a lot weaker than in the US. A lot of union busting goes
               | in in Austria even if unions are legal. Austrian Antron
               | Paar is notorious for firing everyone who voices about
               | starting a union.
               | 
               | So I have no idea why grandparent and other commenters on
               | HN, would assume VW would be "silently happy" to see more
               | unions, when I'm pretty sure they're not that happy about
               | already having one in Germany but they have to tolerate
               | it because it's the law there, but deep down they'd
               | rather not have any at all as that's how businesses role.
        
               | emptysongglass wrote:
               | > Pretty much, and that's considering unions in Europe
               | are a lot weaker than in the US.
               | 
               | I think you may be talking beyond your knowledge here.
               | Unions in the Nordics are incredibly strong with clear
               | majorities in at least Denmark and Sweden (I'll let
               | someone else chime in on Norway).
        
               | Rinzler89 wrote:
               | I was wrong to generalize. What I meant was the unions in
               | Europe where I am(Austria) are weaker than in the US
               | since they're too nice and non confrontational resulting
               | in loosing at their own interests.
        
               | rrr_oh_man wrote:
               | Respectfully, I don't think you know what you are talking
               | about.
               | 
               | There are no comic book mafia labour unions with no show
               | contracts, but employees' rights in Austria are
               | _monumentally_ better in almost every way compared to the
               | US.
        
               | Rinzler89 wrote:
               | Please, don't move the goalposts, I was comparing unions'
               | power not workers' rights, tow deferent things.
               | 
               | Just look how useless the IT union in Austria was with
               | it's salary increases below inflation. You know what
               | would have helped with their negotiations? The right to
               | strike and let IT infra fall apart for a day, but oh
               | wait, they're not allowed to by law. Unions in the US are
               | a lot more confrontational than in Austria.
               | 
               | But since you opened that can of worms, some companies in
               | Austria will fire you on the spot if you talk about
               | starting a company union(Betreibsrat) because in Austria
               | you have no workers protection against being fired for no
               | reason, even while you're on sick leave.
               | 
               | Even colleagues from the US were shocked on how easy it
               | is for them to get fired here when back home they could
               | have sued for unfair dismissal, but here they were told
               | they have no grounds because the employer can terminate
               | you any time for any reason. Another mate, got sued by
               | his employer since the IT infra he was in charge of
               | crashed while he was sick in hospital and the employer
               | could find him liable for the damages by Austrian labor
               | law. In Austria, not the US. And let's not talk about the
               | infamous 'all-in' contracts some companies use to get you
               | to work unpaid overtime.
               | 
               | Now tell me more about these amazing workers' rights in
               | Austria.
        
               | theyinwhy wrote:
               | I am not an Austrian but what I found online is very
               | different to what you are writing. - Unions bargaining
               | for everyone, including non-members. Where on earth do
               | you have something like that? - IT KV giving everyone a
               | yearly raise instead of only raising the minimum income -
               | Also, laws against "Motivkuendigungen" seem a lot like
               | "protection against being fired for no reason" - You have
               | all-ins everywhere, this is not some Austrian specialty.
               | 
               | Oh and did you hear about the new US specialty of
               | "unlimited vacation"? It is more or less the canceling of
               | your vacation as every vacation you take will be used
               | against you.
               | 
               | I fear you have no idea what a safe haven of a country
               | you seem to be working in.
        
               | MandieD wrote:
               | "... unions in Europe are a lot weaker than in the US."
               | 
               | Maybe in other countries, but certainly not in Germany. I
               | grew up in the southern US, and am still astounded at how
               | strong and effective unions are here, even in
               | conservative Bavaria. I'm in IT, but employed under a
               | permanent contract that was negotiated by and is enforced
               | by IG Metall, the industrial union for all non-management
               | employees of lots of companies, regardless of job
               | function. For example, Germany requires that employers
               | give 24 paid vacation days per year. The contract I
               | signed has 30.
               | 
               | As the post-COVID inflation spun up, they pretty quickly
               | got us an 8% across-the-board pay increase without much
               | drama, because they're taken pretty seriously by
               | management, and that's on top of lots of little increases
               | over the years.
               | 
               | I don't adore everything IG Metall does, but I have
               | trouble even imagining a comparable situation in the US,
               | especially the southern US.
        
               | Rinzler89 wrote:
               | You're comparing the most powerful union in Germany
               | though. There are much weaker unions in Europe. For
               | example the IT union in Austria is super weak.
        
           | Wytwwww wrote:
           | > so it's interesting
           | 
           | Not at all. I don't think German labor law ever applied to
           | American residents working in the US...
        
       | Log_out_ wrote:
       | Well, naturally, same as in Germany.
        
         | hash872 wrote:
         | Eh. Sectoral bargaining is very very different from the much
         | more-confrontational US model where individual firms unionize,
         | to the extent that I don't really think they should even be in
         | the same category as each other. In an alternate history
         | sectorally bargained US, auto workers might actually have lower
         | wages than UAW workers do today because the manufacturing
         | industry sectoral union wants to have a more competitive export
         | sector. They are just two completely different models of not
         | just unionization but how to organize society and have labor-
         | corporate-government relations, so it's not helpful to compare
         | them
        
       | specialist wrote:
       | I was surprised at the time that Volkswagen's labor stakeholders
       | in the EU permitted non-union shops elsewhere.
       | 
       | A solid win.
       | 
       | For future, I support sectorial bargaining, to level the
       | battlefield.
       | 
       | (Idle thought: Perhaps UBI would serve same purpose.)
        
         | avianlyric wrote:
         | VW runs a "Works Council" for the German plans, which is
         | basically a union, except it's funded by the company rather
         | than union dues. As it happens it's illegal for companies to
         | contribute any financial support to a labor organisation in the
         | US [1].
         | 
         | So while VW originally wanted a union, and "Work Council" type
         | setup when they came to the US. Local law basically made it
         | illegal for VW to do that. Not only that, but the local
         | politicians seemed to have fought tooth and nail to discourage
         | VW workers from unionising. It also seems that since the plant
         | was originally setup, US based management have brought their
         | strong dislike of unions to the table. So while VW didn't try
         | to prevent unionisation originally, in more recent years their
         | US management has made it very clear they don't want unions,
         | and also don't like the "Works Councils" that VW operates
         | elsewhere.
         | 
         | [1] https://www.nytimes.com/2014/02/15/business/volkswagen-
         | worke...
        
           | Rinzler89 wrote:
           | And the US VW management is not under the control of the
           | German VW management who own the US subsidiary? Therefore the
           | anti-union actions from the US management come with the
           | blessing or even the order of the German management?
        
             | Wytwwww wrote:
             | How is not allowing the company to directly fund unions
             | "anti-union"? It's the opposite if anything, it keeps them
             | independent and prevents them from being coopted and
             | influenced by management (after all UAW seems to be
             | generally more effective than German unions).
        
       | AndrewKemendo wrote:
       | This year has been absolutely amazing for Union drives:
       | 
       | https://aflcio.org/formaunion/union-organizing-wins
       | 
       | Anyone who is rightfully dissatisfied with the share of value
       | they own compared to capital should be unionizing to seize the
       | means from them
        
         | kbolino wrote:
         | Growing tensions with the PRC have been essential for this. If
         | VW had to compete with BYD, I doubt the former would survive.
        
           | mattmaroon wrote:
           | Elon is right, tariffs are going to be necessary if we don't
           | want to cede the auto industry to China, and I cannot imagine
           | we do. It's really hard to compete with nearly slave labor.
        
             | Rinzler89 wrote:
             | That same slave labor is the reason why so many western
             | companies moved their factories to China in the first place
             | form 1978 when China open to international business and
             | leaving a working class of people without jobs, and VW was
             | one of the first to open a factory there.
             | 
             | Funny how we never saw the usage of Chinese slave labor as
             | an issue warranting tariffs when it made western companies
             | huge profits and leaving westerners jobless, but only when
             | they have to face with the new Chinese competitors and
             | loose profits do they cry wolf.
             | 
             | Hypocrisy much?
        
               | mattmaroon wrote:
               | I'm not sure it's hypocrisy so much as pure self-
               | interest. It would be hypocrisy if the complaint was
               | actually about the condition of Chinese workers. Few
               | really care about that unless they're jumping out of
               | windows, and most not even then.
               | 
               | In both cases, it's just capitalists wanting to make
               | money. It may be awful but it's at least consistent.
        
               | kbolino wrote:
               | Three generations, several Presidential administrations,
               | and a few massive shifts in geopolitical realities later,
               | it's more amazing how much continuity there has been in
               | policy than how "hypocritical" a bunch of totally
               | different people are to each other.
        
             | impossiblefork wrote:
             | I don't think the problem is slave labour. I think it's
             | just that the Chinese companies don't seem to care about
             | undercutting themselves, and will instead sell as much as
             | they can to whoever will buy.
             | 
             | I can go on Alibaba and buy batteries directly from Eve
             | Energy Co for reasonable prices-- batteries that I could
             | stick in my homebuilt electric car, or do exactly whatever
             | I wanted with. I can buy synthetic crystals, quartz, yttria
             | stabilized zirconia monocrystals, sapphire boules, etc.
             | 
             | In the west all these things are locked up. You can't buy
             | them if you're an ordinary person, so no one buys them to
             | experiment on.
             | 
             | A western car manufacturer wouldn't sell batteries to an
             | individual, nor would his supplier. But in China they don't
             | care, if you pay, you get it.
             | 
             | Of course, upon all this, they're also strategic. The
             | government actually analyses things and figures out
             | critical technologies for the future and makes sure that a
             | decent number of people are working seriously on them, that
             | they do this as a job, and with the intent of actually
             | realising large-scale production with real impact.
        
         | verteu wrote:
         | Are VW's shareholders actually doing well?
         | 
         | It seems Volkswagen stock is down -16.23% last-5-years, and
         | trading at a price-to-book ratio of 0.39.
         | 
         | I'm not an accountant, but with such a low P/B ratio, is there
         | a chance the company gets bought out and liquidated for its
         | assets, costing everyone's jobs?
         | 
         | For comparison: Ford trades at price-to-book ratio of 1.13 and
         | is up 16.62% last-5-years (still not much better than the risk-
         | free rate). And long-term TSLA shareholders, of course, have
         | made incredible profits.
         | 
         | https://ycharts.com/companies/VLKAF/price_to_book_value
         | 
         | https://ycharts.com/companies/F/price_to_book_value
        
           | srockets wrote:
           | It bears repeating that Tesla isn't in the same category:
           | their main value is in their stock price, not stamped metal
           | and batteries, or even the knowledge in assembling those into
           | vehicles.
        
             | Rinzler89 wrote:
             | _> Tesla isn't in the same category: their main value is in
             | their stock price,_
             | 
             | So it's like Bitcoin. It's worth a lot because a lot of
             | people believe it's worth a lot.
        
               | srockets wrote:
               | This is true for any stock. The difference between
               | speculation and investment is what drives that belief in
               | future worth of the assest.
        
               | Rinzler89 wrote:
               | That would make Tesla's value more speculation than
               | investment.
        
           | TacticalCoder wrote:
           | VW's problem is the EU: the EU decided (corruption?
           | incompetence? both?) to hand over the EU market to non-EU
           | companies, like the chinese ones.
           | 
           | They way they did that was to come up with the craziest green
           | agenda ever: no more sales of ICE vehicles in the EU by...
           | 2035. They decided that a few years ago and this was the
           | beginning of the end for all the EU car manufacturers.
           | 
           | There's no way the EU car manufacturers can be competitive
           | with Tesla on one hand (better batteries) or the chinese
           | (way, way, way cheaper vehicles) by 2035.
           | 
           | So EU politicians, in their usual idiocy, decided to destroy
           | the economy of the biggest country in the EU, Germany.
           | 
           | Seeing this as an EU citizen makes me sick.
           | 
           | I understand that it's great to take ESG postures but... At
           | the cost of destroying your entire economy? All the while the
           | EU is a measly 400 million people and there are _billions_ of
           | people in, say, China and India who don 't give a fuck about
           | destroying the planet.
           | 
           | Insanity. 2035 was way too early: this left no time to german
           | car manufacturers. A sad state of affair.
        
             | toyg wrote:
             | "EU politicians" don't exist. The EU agenda is set by
             | national governments in the Council - including the German
             | one, which happens to have produced important Commissioners
             | like _the current Commission President_.
             | 
             | The woes of VW have little to do with the green agenda (the
             | electric switch is a reality worldwide), and more to do
             | with a brand tarnished by the emission scandal and the
             | whiff of corruption emanated by the (lack of real)
             | consequences in Germany - because the German government
             | largely looked the other way.
        
             | aurareturn wrote:
             | Yes, EU decided to hand over their markets to China even
             | though Mercedes and Audi sell more cars in China than all
             | of Europe combined.
        
           | Wytwwww wrote:
           | > is there a chance the company gets bought out and
           | liquidated for its assets
           | 
           | Not really. Its partially state owned and considering the
           | influence of the unions and the government nobody could
           | really buy it (especially not to liquidate it).
           | 
           | The valuation is not great, but they are still reasonably
           | profitable also it pays a 5-7% dividend which is quite decent
           | (and I think if its taken into account the return over the
           | last 5 years was positive if still not great).
        
       | MasPlan wrote:
       | Such unionization also has significant spill-over effect on non-
       | unionized workers, which improves their outcomes also
       | (https://www.nominalnews.com/p/unions-strike-action-and-
       | the-e...). It's good to see this shift as it also improves
       | outcomes for consumers.
        
       | nine_zeros wrote:
       | Saw how comfortable and respectful unionized jobs are when my
       | wife had a medical condition. At my tech company, they'll try to
       | create fake narratives to PIP you out.
       | 
       | Unions are totally worth it when there is abuse of power.
        
         | srockets wrote:
         | s/abuse of power/imbalance in power/
        
           | loa_in_ wrote:
           | Imbalance of power is almost universal, but the abuse of it
           | isn't necessarily so.
        
       | ThrowawayTestr wrote:
       | Good for them. More shops should be unionized.
        
       | ChrisArchitect wrote:
       | [dupe]
       | 
       | Some more discussion:
       | https://news.ycombinator.com/item?id=40094264
        
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