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Detroit Three autoworkers could get huge bonuses

For a long time, being a line worker for one of the Detroit Three has meant living with an uncertain future. With the health of American automakers on the rise, though, things are also starting to look up for the men and women building the cars. The latest sign that things aren't bad? Big profit-sharing checks.
According to The Detroit News, Ford, General Motors and Chrysler could end up paying over $800 million to 130,000 workers as part of a profit-sharing plan. According to The News, the economic impact of these profits in Michigan alone could exceed $400 million, besting the NFL's Super Bowl, MLB's All-Star Game and the NHL's Winter Classic for their economic impact.
This is the third straight year the Detroit Three have issued profit-sharing checks to UAW employees, and for many workers, the checks are as close as they'll get to a raise, due to the most recent contract between the union and the manufacturers. On average, employees at GM and Ford receive $1 for every $1 million in North American (not just the US) pre-tax profits. Chrysler, meanwhile, gets a similar deal, although the Auburn Hills-based company calculates profit sharing using 85 percent of the brand's global profits.

UAW Chief Shawn Fain disrupts Detroit's labor tradition

He's known to quote the Bible and Nation of Islam civil rights leader Malcolm X. He's a social media fanatic who keeps the pay stubs of his union member grandfather in his wallet. And now, Shawn Fain is representing nearly 150,000 auto workers in one of the biggest labor strikes in decades. In taking action against all three Detroit carmakers, Fain, the head of the United Auto Workers, has remade the strategy of the union he leads, choosing a bolder, much riskier path than his predecessors after he won office by a narrow margin in a first-ever direct election earlier this year. The strike started as the clock hit midnight on Friday, and followed Fain's decision to open negotiations with Ford Motor, General Motors and Stellantis simultaneously and eschew public niceties involving choreographed handshakes that famously kicked off previous negotiating efforts. The strategy is not without risk. A weeks-long strike would hit workers who live paycheck to paycheck, while the Detroit Three automakers have billions in cash to withstand the walkout. Fain, 54, has made creative use of social media, appearances on network and cable news programs and alliances with high-profile progressive politicians such as U.S. Senator Bernie Sanders, to reframe the UAW's contract bargaining as a battle to re-set the balance of power between workers and global corporations. He has rebutted automakers' concerns about labor costs by pointing out that they have poured billions into share buybacks to benefit investors. "If they’ve got money for Wall Street they sure as hell have money for the workers making the product," he said. “We fight for the good of the entire working class and the poor." In lengthy social media talks to UAW members, Fain alternates quoting Bible verses with the use of charts and graphs to dissect wage and benefit offers from the automakers - details his predecessors kept behind closed doors during bargaining crunch time. Fain, in his unorthodox approach, ran what amounted to a public auction among the companies to push each one to top the other to avoid a costly walkout. Prior UAW presidents picked just one automaker to set a pattern for the other two. Over and over, Fain has told UAW members at the Detroit Three that they can reverse 20 years of wage and retiree benefit concessions, stop further plant closures and end a seniority-based, tiered compensation system that pays new hires as much as 44% less than veteran workers.

U.S. automakers unite in opposition to possible Trump vehicle tariffs

WASHINGTON — The U.S. auto industry urged President Donald Trump's administration on Monday not to saddle imported cars and auto parts with steep tariffs, after the U.S. Commerce Department sent a confidential report to the White House late on Sunday with its recommendations for how to proceed. Some trade organizations also blasted the Commerce Department for keeping the details of its "Section 232" national security report shrouded in secrecy, which will make it much harder for the industry to react during the next 90 days Trump will have to review it. "Secrecy around the report only increases the uncertainty and concern across the industry created by the threat of tariffs," the Motor and Equipment Manufacturers Association said in a statement, adding that it was "alarmed and dismayed." "It is critical that our industry have the opportunity to review the recommendations and advise the White House on how proposed tariffs, if they are recommended, will put jobs at risk, impact consumers, and trigger a reduction in U.S. investments that could set us back decades." Representatives from the White House and the Commerce Department could not immediately be reached. The industry has warned that possible tariffs of up to 25 percent on millions of imported cars and parts would add thousands of dollars to vehicle costs and potentially devastate the U.S economy by slashing jobs. Administration officials have said tariff threats on autos are a way to win concessions from Japan and the EU. Last year, Trump agreed not to impose tariffs as long as talks with the two trading partners were proceeding in a productive manner. "We believe the imposition of higher import tariffs on automotive products under Section 232 and the likely retaliatory tariffs against U.S. auto exports would undermine - and not help - the economic and employment contributions that FCA, US, Ford Motor Company and General Motors make to the U.S. economy," said former Missouri Governor Matt Blunt, the president of the American Automotive Policy Council. Some Republican lawmakers have also said they share the industry's concerns. In a statement issued on Monday, Republican Congresswoman Jackie Walorski said she fears the Commerce Department's report could "set the stage for costly tariffs on cars and auto parts." "President Trump is right to seek a level playing field for American businesses and workers, but the best way to do that is with a scalpel, not an axe," she added.