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| A battery plant run by Ultium Cells, a joint venture between LG Energy Solutions and General Motors, in Warren, Ohio, U.S. Courtesy of Ultium Cells |
By Kim Hyun-bin
Concerns are rising at LG Energy Solutions (LGES) after unionized workers at the company's battery plant in the U.S. state of Ohio are demanding a significant increase in wages. Depending on the outcome of wage talks, battery plants in other regions could be affected, according to industry officials, Friday.
Ultium Cells, a joint battery manufacturing company set up by LGES and General Motors (GM) in Warren, Ohio, said the United Auto Workers intend to proceed with the first collective wage negotiations after a local chapter of the union is formed next month.
The UAW is expected to demand a pay raise to $32 an hour in the first collective bargaining agreement. If reached, it will become the highest hourly wage in the U.S. auto parts industry.
LGES and GM are expected to focus on suppressing the wage increase rate as an increase in salaries can lead to a decline in battery price competitiveness. In addition, the outcome of the labor-management negotiations could affect wages at other factories that will start operating in the states of Tennessee and Michigan in the future.
Ultium Cells is already turning to local labor-management relations experts in preparation for negotiations with the union.
"The company is committed to the collective bargaining process, and will work in good faith with the UAW to reach a competitive agreement that positions our employees and our Ohio battery cell manufacturing facility for success. We look forward to a positive working relationship with the UAW," Ultium Cells said.
