According to Bloomberg, several months ago, the United Automobile Workers (UAW) reached an agreement with electric vehicle maker Rivian that would make it easier for the company’s employees to unionize.
However, all this needs to be based on certain prerequisites.
, Photo source: Rivian, according to people familiar with the matter, according to a confidentiality agreement signed between Rivian and the UAW, Rivian can take a neutral stance on unionizing workers at its Illinois factory, but the neutrality promise will only take effect after the company meets profit targets and other indicators.
As for which indicators they are, the above-mentioned person familiar with the matter did not elaborate.
In recent years, the UAW has tried to establish unions in the electric vehicle industry, and Rivian is a major long-term goal.
Although the agreement signed between the two parties will help the UAW advance the unionization process in Rivian, establishing a union in Rivian remains a distant goal because the company has not yet achieved adjusted quarterly profits and has been struggling to cope with supply chain issues and challenges such as declining demand in the electric vehicle market.
Rivian did not comment on the agreement between the two parties, while the UAW declined to comment.
Reported that Rivian promised not to oppose the union efforts of its workers, a promise that is particularly important to the UAW because U.S. President-elect Donald Trump is expected to be less friendly to unions than current President Joe Biden.
, For Rivian, the agreement with the UAW could help it secure a $6.
6 billion conditional loan from the U.S. Department of Energy, according to people familiar with the matter.
According to Bloomberg reported in July, Rivian’s hostile relationship with the UAW was a point of contention during the company’s discussions with the pro-labor Biden administration over loans.
Last month, Rivian announced that the U.S. Department of Energy had approved a conditional loan of up to US$6.
6 billion to the company, including US$6 billion in principal and US$600 million in capitalized interest, to help the company build a factory in Georgia, USA.
If the UAW ultimately wins Rivian’s union vote, the company will be required to engage in collective bargaining on issues such as pay and working conditions.
Workers will have a formal say in more company decisions, while management will have limited discretion in business aspects such as benefits, scheduling and safety matters.
Bloomberg reported that for some customers, a unionized workforce can help Rivian consolidate its brand image and become a replacement for Tesla.
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