80-Year-Old UAW Takes on 14-Year-Old Tesla

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By Douglas A. McIntyre Updated Published
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80-Year-Old UAW Takes on 14-Year-Old Tesla

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[cnxvideo id=”508884″ placement=”ros”]When Tesla Inc. (NASDAQ: TSLA) started in 2003, CEO Elon Musk could never have imagined his electric car company would face the prospects of workers who would want to be part of a union. Recently, he found out that the 82-year-old United Automobile Workers (UAW) plans to treat Tesla much as it does other car companies. Apparently, even workers at new-age car companies need support similar to workers who were poorly paid and had no benefits in the 1930s.

The Tesla union effort shows how little the UAW has evolved. One of its primary goals always has been collective bargaining. Jose Moran, one of Tesla’s factory workers wrote:

Many of us have been talking about unionizing, and have reached out to the United Auto Workers for support. … But at the same time, management actions are feeding workers’ fears about speaking out. Recently, every worker was required to sign a confidentiality policy that threatens consequences if we exercise our right to speak out about wages and working conditions.

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Musk objects to that, based on the belief he already takes good care of his workers. And his objections border on insult. Writing at Gizmodo, he said:

There is sometimes mandatory overtime if we are trying to make up for a production stoppage, but it is dropping almost every week.

Fights between auto company management and workers always have been guided by claims and counterclaims, many of which are not true. Musk is faced with proving something about which he may know little, depending whether he tours his factory floors and talks to workers.

All Tesla, which has ramped up production, needs is a strike. The UAW has been using that leverage for decades. No reason to stop now.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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