A group of 33 Democratic Senators sent a letter to 13 automakers urging neutrality in the face of a widespread union organizing campaign by the United Auto Workers.
Why it matters: The letter highlights the continued – and somewhat unprecedented – involvement of political power in labor relations with the goal of increasing union density.
Carrot before the stick: While the letter itself creates no binding obligations on its target employers, it implies that federal funding authority could be used against the automakers should they “interfere with” unionization efforts. The letter specifically claims neutrality is the least the employers could do “especially as companies receive and benefit from federal funds related to the electric vehicle transition.”
The bottom line: The UAW’s unionization crusade in the American auto industry continues to have friends in high places – whether that will result in union contracts beyond the Big 3 remains to be seen.
“Commitment to neutrality:” The letter urges all 13 automakers to implement neutrality agreements at all of their manufacturing plants in the face of the UAW campaign, claiming that doing so “is the bare minimum standard manufacturers should meet in respecting workers’ rights.”
Unprecedented weight: While lawmakers such as Sen. Bernie Sanders (I-VT) have pressed companies on labor relations issues before, this letter is particularly significant given the sheer number – 33 – of Senators urging neutrality. The number of signatories demonstrates where the Senate and much of the federal political establishment sits on unionization.
Whither employer voice? The letter claims that neutrality best serves workers’ rights. However, federal labor law both guarantees an employee’s right to hear all sides on unionization as well as employer free speech. In practice, neutrality agreements work to restrict or eliminate both – an employer is prohibited from expressing its views, while employees will only hear the union’s side of the story.
Outlook: As long as President Biden remains in the White House and Democrats retain some measure of control in Congress, employers in all industries can expect this kind of political weight to be thrown behind unionization, often at the expense of employers.
