Domestic and Foreign Labor Issues in the Automotive Industry

Please join us for the next installment of the Morgan Lewis Automotive Hour Webinar series, focused on domestic and foreign labor issues in the automotive industry.

Key Takeaways

Growing Momentum for UAW: 2023’s Stand Up Strike and Government Support

• The United Auto Worker (UAW) 2023 strike introduced a novel, targeted strategy across the Big Three automakers that sought to create operational chaos and reputational damage. The strategy was part of a broader campaign to unionize Southern US automakers.
• UAW leveraged its endorsement of President Joseph Biden and the administration’s whole-of-government labor rights policy to extract significant wage increases and other concessions from automakers that could then be used to attract interest among workers in non-union plants.

European Union’s Supply Chain Due Diligence Act (LkSG)

• Effective January 2023, the LkSG requires German companies with over 1,000 employees to ensure human rights and environmental protections in supply chains. It also imposes a duty to remedy human rights violations.
• The LkSG imposes heavy fines for non-compliance, but ambiguity remains on how severe a violation made abroad must be to trigger penalties.

United Kingdom’s New Labour Government and Union Reforms

• Since the July 2024 election, new laws have been proposed to expand union access to workplaces, simplify union recognition processes, and end "fire and rehire" practices.
• The reforms are aimed at empowering workers and strengthening collective bargaining rights.

A Global Shift Towards Stronger Labor Protections

• The United States, European Union, and United Kingdom are all moving towards stronger labor protections and enhanced union influence.
• Companies must stay informed and proactive to navigate the evolving labor landscape and regulatory compliance.