Vaccine Mandates Being Considered By Auto Industry, UAW

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With the Biden administration having announced that it would start requiring companies to vaccinate employees, automakers and UAW are finding themselves in a sticky situation. Unions had previously said they wanted to hold off on endorsing or opposing mandatory vaccinations until after they discussed things with the industry and their own members. Considering Joe Biden said he wouldn’t make vaccines mandatory less than 10 months ago, employers are getting caught with their pants around the proverbial ankles.

Automakers had previously been surveying white-collar workers to see what they wanted to do while upping on-site COVID restrictions, but operating under the impression that any hard decisions were likely a long way off and left entirely to their discretion. Now the Department of Labor’s Occupational Safety and Health Administration is planning a new standard that requires all employers with 100 (or more) employees to guarantee their workforce is fully vaccinated or require any unvaccinated workers to produce a negative test result on a minimum weekly basis. 

Employers that fail to implement the stated requirements could face fines of nearly $14,000 per violation, according to the White House, with penalties also doubling for those who refuse to wear masks during interstate travel. Those are potentially steep fees when you’re employees number in the thousands. Union officials have said they’re considering the matter without committing to more than absolutely necessary — though the UAW officially opposed vaccine requirements in the past.

From UAW President Ray Curry:

“The UAW has and continues to strongly encourage all members and their families to be vaccinated unless there is specific health or religious concerns. We know that this is the best way to protect our members, coworkers and their families.

We are reviewing the details of yesterday’s announcements and the impact on our members and our over 700 employer contracts.

In the meantime, we continue our member commitment to practice safety in every one of our worksites by following protocols including masks, sanitizing and reporting any exposure or symptoms of the virus. At the UAW we all understand that fighting this pandemic and protecting our families is key to our survival.”

Assuming the union ultimately decides to endorse the vaccine decree, it’s likely going to be fracturing its membership. While I am hardly against vaccinations, I strongly support informed consent and speaking candidly about this has resulted in autoworkers frequently confessing they’re similarly opposed to forced vaccinations. Many have said they would immediately quit their jobs, matching a recent Washington Post poll claiming 70 percent of unvaccinated workers would simply abandon their positions if vaccine mandates are instituted. It’s my assumption that the industry will have a sudden, catastrophic staffing shortage were it to move forward with the Biden plan.

Automakers have been similarly noncommittal, with manufacturers (including Ford, GM, Stellantis, Honda, and Toyota) stating they encourage staff to get vaccinated and want to adhere to all government-issued health protocols. But they typically steer clear of addressing the Biden plan directly, possibly indicating some hesitancy. That said, it hasn’t even been a full day since the vaccine mandate was announced and their HR and legal departments are probably wringing their hands as they ponder upon what’s to be done and the fallout it might create.

Every statement automakers have been willing to make thus far can be paraphrased into “hold on … we’ve got to think about this,” followed by a paragraph about how they believe in vaccinations and want to adhere to recommendations coming from the relevant health experts. Conversely, very little has been said about the rights or preferences of their employees.

I’m not going to beat around this bush. The entire premise of these mandates seems insane to me, bordering on wicked. As an American, I always thought the whole premise of the country was predicated upon the shared belief that personal liberties and freedom of choice trump everything else. But that doesn’t seem to be what’s coming down from the top anymore. The rhetoric being used by Joe Biden is egregiously confrontational, including statements like “we’ve been patient, but our patience is wearing thin” as he made sweeping assertions about how the unvaccinated are stifling national unity and progress. He also confusingly stated that vaccinated workers need to be “protected” from the unvaccinated.

Assuming vaccines are effective, shouldn’t it be the other way round? What exactly are we shielding people from when new strains continue to manifest, can still be spread amongst the vaccinated, and the shots we currently have are targeting older COVID variants that have lost steam?

The economic and social stress this is likely to place upon the industry and country as a whole will be nothing short of monumental. Protests have been erupting across the globe all summer. Truckers have started organizing in numerous countries and have refused to deliver to areas imposing strict COVID rules, exacerbating food shortages in urban areas. In the United States, the same was true for cities that opted to defund police departments. Now they’re starting to talk about strikes focused on vaccine and mask mandates while they’re already experiencing a severe shortage of drivers. Imagine if that spills over to an automotive sector that’s already been beleaguered by the semiconductor shortage, their suppliers, and every other industry you rely on.

[Image: Michael Vi/Shutterstock]

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Biden Planning to Pour $100 Billion Worth Of Rebates Onto EVs

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The Biden administration expanded on its $174 billion proposal to boost electric vehicle sales on Thursday, suggesting that the United States government make it rain money on those purchasing EVs.

Technically a part of the $2.3 trillion infrastructure plan, which has been expanded to include jobs and numerous environmental projects, the proposal makes a lot of special exemptions for alternative energy vehicles backed by large financial commitments. $100 billion will be set aside for new consumer rebates, potentially opening up the door for manufacturers that have already exhausted their quota of federal tax credits linked to zero-emission cars. 

Politico shared a U.S. Transportation Department email sent to congressional staff outlining additional details of the plan. The memo included allocating $15 billion to add another 500,000 EV charging points to the national network, $20 billion for electric school buses, $25 billion for establishing emissions-friendly public transit solutions, and an additional $14 billion in miscellaneous EV incentives. While the White House has not committed itself to explaining exactly how the funding will be broken down, the DOT email said the brunt of the money will go toward encouraging Americans to swap to electric vehicles and more energy-efficient appliances.

This comes after several years of Democrat leadership, aggressively advocating for EVs and influencing the markets as much as would be needed to achieve the desired outcome. Senate Democratic Leader Chuck Schumer was pitching a modified version of Cash for Clunkers that would have offered $454 billion (over ten years) to people trading in an older, gasoline-powered car for a modern electric one. The president also floated a highly similar Car Allowance Rebate System while campaigning in 2020.

“These are the most critical investments we can make for the long-term health and vitality of the American economy and the safety of the American people,” Joe Biden said last July. “Here we are now with the economy in crisis, but with an incredible opportunity not just to build back to where we were before, but better, stronger, more resilient, and more prepared for the challenges that lie ahead … And there is no more consequential challenge that we must meet in this next decade than the onrushing climate crisis.”

Though Biden and Schumer are just a couple of examples drawn from an incredibly deep well of politicians. Reuters noted that Michigan Senator Debbie Stabenow and Representative Dan Kildee have been working on a bill to restore and expand the Obama-era EV tax credit system — which they elaborated upon in a recent interview.

From Reuters:

Kildee wants to skew the credit in favor of vehicles with more affordable vehicles with longer range, to “democratize the electric vehicle market.”

He said they are “looking at ways to make the credit more accessible to middle- and lower-income families, potentially even making the credit refundable.”

Kildee said EVs are “where the market is going — full stop. The only question that we have to answer is are these going to be vehicles made by American workers.” Kildee said they could also introduce a credit for used EV purchases.

Stabenow said it was important to give automakers incentives to produce electric vehicles in the United States.

“China has committed $100 billion to grab this market — both battery cell production but also in other component parts of electric vehicles,” Stabenow said. “We better take it seriously.”

While your author is generally skeptical of social engineering, there’s plenty of evidence to suggest that the original Cash for Clunkers program was not environmentally sound. Adopting a blind push into electrification, as China has, may also have unintended consequences. China’s heavy incentivization of EVs backfired as consumers started pulling out of the market, unsure of what the next round of regulations or incentives would look like. Subsequent cuts to subsidies then crippled the auto market and started negatively impacting some of China’s biggest auto brands.

We expect to see Republicans pushing back eventually, however they seem to be preoccupied with President Biden’s recent executive orders pertaining to gun control. As many are calling the actions unconstitutional, it’s likely to receive the brunt of the media focus. It could be days before they’ll able to organize comprehensive criticisms against the infrastructure/EV proposals. But we’re betting the response will be rather meek until the current administration better explains how the credit process is supposed to work and which entities will be eligible. As things currently stand, the only censures to be made are that it sounds like a heck of a lot of money to swell a plan we’ve tried already.

[Image: Welcomia/Shutterstock]

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