EV battery workers demand better pay, challenge Ford’s labor practices in Kentucky.
At a Glance
- Supermajority of BlueOval SK workers in Kentucky sign UAW union cards
- Plant workers earn $5 less per hour than UAW members at Ford facilities
- Unionization effort aligns with UAW’s strategy to organize EV battery plants
- Success could reshape labor practices in the automotive sector
UAW Makes Bold Move in Kentucky
In a significant development for labor rights in the automotive industry, a supermajority of workers at BlueOval SK, a joint venture between Ford Motor Co. and Korean battery manufacturer SK On, have signed union cards to join the United Autoworkers (UAW) union. The plant, located in Glendale, Kentucky, near Louisville, is set to begin battery production in early 2025, employing 2,500 workers. This move marks a crucial step in the UAW’s broader strategy to unionize electric-vehicle battery plants and automotive factories in the South.
The push for unionization at BlueOval SK highlights the disparity in wages between battery plant workers and their counterparts in traditional automotive manufacturing. Currently, wages at the plant range from $21 to $37.50 per hour, significantly lower than what Ford workers under UAW contracts earn. UAW members at Ford production facilities start at $26.32 per hour and can reach over $42 per hour after three years.
"Battery workers are autoworkers.”
Today, a supermajority of battery workers at BlueOval SK in Kentucky announced that they have signed union cards and launched their public campaign to join the UAW.#StandUpUAW pic.twitter.com/4PHTDMQWpH
— UAW (@UAW) November 20, 2024
UAW’s Southern Strategy
The unionization effort at BlueOval SK is part of the UAW’s larger campaign to establish a foothold in the Southern states, traditionally resistant to union organizing. The union has experienced mixed results in the region, with a notable victory at Volkswagen USA in Chattanooga, Tennessee, but a setback at Mercedes-Benz in Vance, Alabama. This push in Kentucky mirrors the UAW’s successful unionization of Ultium Cells LLC plants in Lordstown, Ohio, and Spring Hill, Tennessee.
UAW President Shawn Fain has been vocal about including union representation at EV battery plants affiliated with Ford, GM, or Stellantis. This stance aligns with the union’s focus on nonunion battery plants as a growth strategy, following a contract with Detroit automakers in 2023. The UAW’s success in Kentucky could set a precedent for future organizing efforts in the rapidly expanding EV sector.
Implications for the Automotive Industry
If the unionization effort at BlueOval SK succeeds, it could have far-reaching implications for the automotive industry. Higher wages at battery plants would likely increase production costs for EVs, potentially slowing down the transition to electric vehicles. This could benefit traditional automakers and their workforces in the short term but may hinder America’s competitiveness in the global EV market.
The UAW’s push for higher wages and better working conditions at EV battery plants also raises questions about the long-term sustainability of the American auto industry. While improved labor conditions are commendable, they must be balanced against the need for competitive pricing in a global market. The outcome of this unionization effort could shape the future of automotive manufacturing in the United States, influencing investment decisions and potentially affecting job creation in the sector.
