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Stellantis made $18 billion in profit last year and has continued to announce record profits since. "Yes, they've been very profitable, but they're also, at the same time, very eager to reinvest those profits into their EV product development." The union wants more guarantees the companies, flexibilityĪuto companies have already pointed to the high cost of EV transition to explain painful cuts, like when Stellantis - the parent company of Chrysler - shut down a plant in Belvidere, Ill., citing the high cost of the EV transition.īut Patty Ellison, whose shift at that plant was cut in 2019, didn't buy it. "There is some truth to this," says Ed Kim, an analyst with AutoPacific.

They argue that despite high profits, they cannot afford the union's demands - and that the high cost of the electric transition is a big reason why.Īnalysts say the automakers' stance is not entirely incorrect.

They cited enormous profits by the automakers and the hefty pay earned by the CEOs to make the case for big gains for workers. The UAW initially asked for more than 40% raises, as well as the return of pensions, cost of living increases and certain job security provisions. The Big Three say the transition to EVs limits what they can offer Big Three standards, it's not going to be a good future for anyone," he said. "If we don't secure this work and we don't secure it at. However, he said, the transition made it more crucial that both assembly line workers and battery workers (some of whom are unionizing with the UAW under separate contracts) have pay, benefits and guarantees as good as autoworkers used to have. We have to have a planet that we can live on," UAW President Shawn Fain said at a virtual rally this past weekend. The United Auto Workers union is not trying to resist this transition. Automakers are committed to rapidly scaling their production of EVs in response to government and investor pressure to cut carbon emissions and slow climate change.