LG, Samsung, SK face soaring labor costs for US battery plants

Ultium Cells' factory in the U.S. state of Ohio is seen in this July 2023 file photo. AP-Yonhap

Korean battery makers running joint factories with U.S. carmakers are facing surging labor costs as they have no choice but to sharply raise wages for their American employees amid growing union influence, according to industry officials, Tuesday.

Ultium Cells, the joint venture between LG Energy Solution and General Motors (GM), reached a tentative agreement with the United Auto Workers (UAW) on Monday (local time) for a 30 percent wage hike over three years. This came after Ultium Cells and the UAW agreed last August to increase the factory workers’ wage by 25 percent on average.

“Eighteen months ago, this company was on a low road path to poverty wages, unsafe conditions and a dark future for battery workers in 카지노 America,” UAW President Shawn Fain said. “Now they’ve more than doubled their wages by the end of this contract, won record health and safety language and showed the world what it means to win a just transition.”

UAW Local 1112 Shop Chairman Josh Ayers also said that the union wants this agreement to become a cornerstone for current and future battery plants across the nation.

Their remarks indicate that the UAW will flex its muscle once again against other joint battery plants that Samsung SDI and SK On run with U.S. carmakers.

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