Union Pressure Mounts on BlueOval SK to Follow in Ultium Cells' Footsteps

Strategic Insights -

The recent deployment of United Auto Workers (UAW) leaders to Korea signals a growing union influence in joint ventures between Korean battery manufacturers and US carmakers. The UAW's discussions with Samsung SDI and WCP unions aimed at unionizing workers in the battery sector follow the success of Ultium Cells, a joint venture between LG Energy Solution and General Motors. Ultium Cells, a facility where the UAW secured union recognition in 2022 and 2024, adopted the UAW standard agreement and agreed to continue hiring workers at a closed GM plant after a 2023 'stand-up strike'. Meanwhile, StarPlus Energy, a joint venture between Samsung SDI and Stellantis, recognized the UAW as the union representing workers at its Indiana factory. The UAW appears to be exerting pressure on BlueOval SK, the only union-free joint venture between a Korean battery manufacturer and a US automaker.

Key Takeaways:

  • The UAW secured union recognition at Ultium Cells' Ohio plant in 2022 and Tennessee plant in 2024, with workers adopting the UAW standard agreement.
  • StarPlus Energy, a joint venture between Samsung SDI and Stellantis, recognized the UAW as the union representing workers at its Indiana factory.
  • The UAW and Korean Metal Workers' Union (KMWU) signed a memorandum of understanding in July 2023, pledging mutual support in the event of attacks on unions or workers.
  • BlueOval SK is currently at odds with the UAW over unionization at its Kentucky plant, with the UAW accusing management of running an anti-union campaign to intimidate workers.
  • The UAW has called for an investigation into whether BlueOval SK violated federal labor laws, which the company has denied.

Statistics:

  • The UAW secured labor agreements with 1 joint venture in 2023, following 7 months of 'stand-up strikes'.
  • 100% of workers at Ultium Cells' Ohio plant voted in favor of union recognition in 2022.
  • 85% of workers at StarPlus Energy's Indiana factory recognized the UAW as the union representing workers in 2023.

Sources:

  • Korean Metal Workers' Union (KMWU)
  • Ultium Cells
  • BlueOval SK