Ultium Cells’ leader: no ‘viable legal or practical path’ to rolling workers into UAW national contract

LORDSTOWN -- There is no "viable legal or practical path" to fold employees at Ultium Cells into a national agreement between United Auto Workers and General Motors, according to a top executive at the electric-vehicle battery-cell factory in Lordstown.

Ultium Cells is a "separate legal entity and independent employer" from GM and LG Energy Solution, wrote the company's acting President Alex Eom in a letter to U.S. Sen. Sherrod Brown.

"We have communicated that position to the UAW and remain committed to bargaining a fair agreement that allows Ultium Cells, our employees and the UAW to succeed in the EV future," Eom's letter states.

The Detroit automaker and LG Energy Solutions, based in South Korea, partnered to form the joint venture Ultium Cells. The factory in Lordstown, which employs about 1,400 people, was the first built and to launch production, which began in August 2022.

Workers there in December voted overwhelmingly -- 710 to 16 -- to join the UAW. Since January, the company and the union have been in contract talks.

Brown, D-Ohio, along with 27 U.S. senators last week called on automakers to bring joint venture EV battery plant workers into the national UAW contract. In a letter to the industry's top executives, they stated workers "must share in the benefits of a union contract.

"Profits should translate to gains for workers. It is unacceptable that in the midst of extreme financial gains for the companies, executives and investors, the workers making the electric-vehicle batteries that will enable a transition to clean-energy vehicles are making poverty-level wages," the senators' letter states.

Brown on Thursday responded to Eom.

A release from his office states, "There is nothing legally stopping these workers from being folded into the national UAW contract.

"This response is just more excuses from a bunch of overpaid, out-of-touch executives. In case they didn't read my letter the first time, I'll keep it simple: fold your workers into the national UAW contract -- just like GM, Ford and Stellantis -- and pay them what they deserve to be paid."

Contract talks are underway among the UAW and GM, Ford and Stellantis, a company formed from the 2021 merger of Fiat Chrysler and PSA Peugeot. The contract expires Sept. 14.

New UAW President Shawn Fain has been critical of wages paid to workers at the Lordstown plant. The union says the plant is paying $16.50 per hour to start, with a top wage of about $20 after seven years. That's far lower than UAW production workers make.

Eom wrote since workers organized in December, "we have been negotiating in good faith to raise initial wages."

"We recognize the value of our workforce and want a labor contract that supports their needs and positions Ultium Cells to grow and be nimble enough to meet the needs to of today's and tomorrow's customers in this dynamic industry," Eom's letter states.

The UAW, according to the letter, has not provided any wage proposals or counter proposals to Ultium Cells in the six months since collective bargaining began.

"In an effort to accelerate our progress to a tentative agreement, Ultium Cells has provided a proposal for a fully comprehensive collective bargaining agreement, including substantial wages and benefits. It is not correct to say that Ultium workers have not been offered more. We're still at the table and look forward to working constructively with the UAW," Eom's letter states.

rselak@tribtoday.com