Chapter 179: The Trade Union Question

This mission to Detroit Bun Xuan is only half completed, and now the signing has been completed. All that remains is to negotiate with trade unions and workers' representatives. Although the United States is a capitalist society, workers in the automobile industry are masters, and trade unions are too emperor-like existence. Not to mention Heiyun, a new army that has just entered the American auto industry, even century-old auto giants such as Ford and General Motors have no good way to organize trade unions.

When the negotiations first began, the trade union organization intervened, but later saw that the Black Cloud Group had the intention of backing down, so it stopped. Now that the dust has settled, the trade union organization has begun to do things again, and actually asked Bao Zixuan to increase workers' wages and reduce working hours. At the same time, it is also threatened with strikes, and if the general demand is also counted. Now it is directly demanding that workers' wages be doubled and their working hours reduced by one-third;

No business can stand such conditions, and Bao Zixuan didn't expect things to turn out like this. I've only heard of the American Auto Union organization in the past, and some of it is insatiable. I didn't want it to be so excessive, so it's no wonder that many companies are moving out of the United States. It is too difficult for these workers to work in Asia rather than increase freight rates. An entrepreneur actually asks them to do something, which makes many people unbearable. Bao Zixuan was no exception, and on the third day after the takeover, he had to meet with members of the trade union and workers' representatives.

After the economic crisis in the United States in the 1930s, President Roosevelt implemented the "New Deal", and with the introduction of the National Industrial Recovery Act and the National Labor Relations Act, American labor unions gained legal status and the right to collective bargaining. Detroit, a northern city in the United States, is home to a large number of American auto manufacturing companies, and the National Auto Workers Union was founded in Detroit in 1930. After the union was formed, most of the workers of the three major automobile companies joined the union. But the problem is that the management of all three major companies is boycotting the unions. In order to prevent the union from recruiting members within the company, the management sought out many "thieves" among the workers, who would inform the managers of the union's activities, who would then punish or dismiss those who joined the union and those who were dissatisfied.

By 1936, the U.S. economy had largely emerged from the crisis, and automobile production was at an all-time high, with General Motors leading the way in automobile production among the three major companies, its products were popular, and workers' wages were higher than those of Ford and Chrysler. Still, the workers were dissatisfied, seeing that managers were paid much more than their $1,000 a month, at $200,000 a year. Moreover, the working conditions in the factory are very poor, and workers are not allowed to go to the toilet during working hours, working up to 12-14 hours a day, six days a week. The assembly line in the workshop runs very fast, which leads to many injuries to workers. In July 1936, temperatures in GM's Flint plant reached 38 degrees, killing several workers from heat stroke, and the company did not pay compensation to their families. These circumstances have made workers realize that in order to raise wages and benefits, unions must be recognized by management in factories and must be collectively bargained.

At the end of 1936, the United Auto Workers wrote a letter to General Motors, asking for talks with the company on the issue of collective bargaining. However, it was rejected by the management. On December 28, workers at GM's Cleveland plant pulled down the power brake on an assembly line, and workers went on strike. In the past, workers would march out of the factories after a strike, but this time they did not do so, and they sat quietly at their respective jobs after the strike, which gave rise to a new form of strike – the sit-down strike. Workers also set up picket lines at the entrance of the workshop to prevent temporary workers recruited by the management from entering the workshop to take their place. At the same time, the workers carefully protected the machinery and equipment in the workshop, so as not to leave an excuse for the management to "destroy the company's property". The strike involved 200,000 workers.

In the aftermath of the strike, Governor Frank Murphy of Michigan, where the city of Detroit is located, had intended to use the military and police to force workers to return to work. Before he did so, he called Lewis, president of the Confederation of Industrial Trade Unions, to which the National Auto Workers are a member, and threatened to use force. But Lewis's answer was, "I'll tell the workers to fight to the end, I'll go to the biggest window in the factory, open the window, take off my tunics, peel off my shirts, and expose my chest." If you give the order to shoot, then let your first bullet go into my chest, and the moment I fall, you will hear your grandfather's voice in your ear asking you - Frank, surely you are doing the right thing?". Later, as Murphy recalled, Lewis's last words touched him too much, because his grandfather was arrested and hanged during an uprising. In the end, Murphy did not order the army and police to enter the factory to suppress the workers, but simply told them to isolate the union pickets from the security guards hired by the company in case of conflict. At the same time, Murphy put pressure on GM's management to negotiate with the union.

After the strike at all GM plants, the union also adopted a quarantine strategy and did not organize strikes at Ford and Chrysler. As a result, the two companies were producing cars at full capacity, which soon became a threat to GM's market, which made GM's shareholders unbearable, and they put pressure on the management to negotiate with the union as soon as possible to end the strike and resume production.

In February 1937, after 44 days of strikes, the workers and unions finally received a commitment from GM management: not to prevent workers from joining the workers, not to discriminate against union membership, and to raise wages. On February 11, the union announced the resumption of work. This strike laid the foundation for the collective bargaining mechanism of the American auto manufacturing industry, and through several rounds of collective bargaining, the wages and benefits of American auto workers have been continuously increased.

Looking at the past strike record and negotiation goals organized by the American auto union, it may have been for better working conditions. Now that the trade union organization has gone sour, it is more like a political tool for some people to achieve their goals. If the workers go on strike just after the acquisition is completed, it will definitely be bad news for Heiyun's overseas expansion, and it will also have an impact on Bao Zixuan's reputation.

Bao Zixuan also knows that it is really necessary to appropriately improve the welfare of workers, but the welfare of American workers is already the highest in the world. This made him very unwilling, but now he can only bite the bullet. After all, when the U.S. Department of Commerce approved the acquisition of Jeep and Dodge, it required that the two car companies not be moved out of the United States, and that more than 200 workers should not be fired.

Now it seems that all this is a pitfall, and we must be more careful when acquiring American companies in the future. If one is not careful, he will be taken to the ditch, the Ministry of Commerce is on the one hand, and the workers and trade union organizations are also on the other.

These people have grown up in the bloody struggle, and giants with deep roots in the United States like General Motors have been scorched, and now Heiyun, the dragon that crosses the river, is really more low-key.

Bao Zixuan is collecting information on workers and trade unions, and the trade unions are also collecting information about Bao Zixuan and Heiyun Group. It's about workers' welfare, treatment and the right to speak in trade unions. Both sides are gearing up for the most reasonable solution.

The workers want to get the treatment they want, and Heiyun Group wants to solve the matter as soon as possible. The development of the first hybrid car is nearing completion, and now is the time for a factory prototype.