President Joe Biden’s green agenda for the auto industry could result in a massive wealth shift from American workers to multinational corporations, according to a report released by the United Auto Workers (UAW).
.@GM: We are putting you on notice that we will not back down. Not only did the federal government bail you out, so did @UAW workers (and their families!), and now that you can afford to provide health care and fair wages, you are abandoning them. pic.twitter.com/J0O7fi1wyO
— Rashida Tlaib (@RashidaTlaib) September 16, 2019
The Inflation Reduction Act, a key component of Biden’s plan, aims to provide generous subsidies totaling $220 billion by 2031 to automakers involved in the production of Electric Vehicles (EVs) and their accompanying batteries.
These subsidies, funded by taxpayers, are conditional upon the EVs and batteries being predominantly sourced and manufactured within the United States, Canada, or Mexico.
While the legislation intends to promote domestic manufacturing and stimulate the EV market, it also facilitates the transfer of billions of dollars to multinational corporations.
Effectively, this amounts to an industry-wide bailout at the expense of hardworking taxpayers. The UAW report focuses on the case of General Motors (GM) and LG’s joint venture, Ultium Cells — an EV battery plant situated in Lordstown, Ohio. The Ultium Cells plant was established to replace GM’s previous vehicle assembly facility.
Comparing pay between the former GM plant and Ultium Cells, the UAW highlights a significant disparity. Workers at the original plant earned wages of up to $30 per hour, whereas those employed at the Ultium Cells plant received approximately $16.50 per hour, with a gradual increase to $20 per hour over seven years.
Remarkably, GM and LG stand to benefit immensely from Biden’s EV tax credits, potentially receiving over $1 billion annually in subsidies through the Ultium Cells plant alone. The UAW expresses concern that these subsidies will only serve to bolster corporate profits while simultaneously slashing compensations for workers.
The report warns against the possibility of hundreds of billions of taxpayer dollars being channeled into an EV industry that exploits and jeopardizes its workforce.
The UAW’s decision to not endorse President Biden stems from the administration’s failure to fulfill commitments assuring auto workers that their pay would not be compromised during the transition to green energy jobs.
These recent findings serve as a critical call to action, urging policymakers to prioritize fair treatment for workers, underscoring the need for a comprehensive approach that protects American livelihoods.