Ultium Workers in Tennessee Join UAW: What It Means for EV Manufacturers

A major change is happening in the U.S. labor market, especially in the fast-growing electric vehicle (EV) industry. Recently, most of the workers at the Ultium Cells plant in Spring Hill, Tennessee, voted to join the United Auto Workers (UAW) union. Ultium, a partnership between General Motors and LG Energy Solution, accepted the union after 1,000 employees signed up. This decision came without any pushback from the company, allowing workers to freely choose to unionize.

What Does This Mean for Workers?

This news is a big win for workers at Ultium and the growing labor movement in the South. Unions have traditionally been less common in the Southern U.S., but things have been steadily changing since the Pandemic low in 2020. As Ultium worker Trudy Lindahl put it, “Southern workers are ready to stand up and win our fair share by winning our unions.” This follows a similar success at Volkswagen in Chattanooga, Tennessee, where 4,300 workers joined a union earlier this year.

Joining a union brings real benefits to workers. At Ultium's first plant in Lordstown, Ohio, which unionized in 2022, workers have already seen better health and safety protections and significant wage increases. By 2027, their pay is expected to more than double from what it was when the plant first opened. These gains set an example for the new union members in Spring Hill, showing the potential for better pay and working conditions across the EV industry.

What does this mean for Manufacturers and EV manufacturers in particular?

The unionization of Ultium in Tennessee reflects a larger trend of growing union activity in the South, particularly in the EV sector. As Tim Smith, Director of UAW Region 8, said, “The new jobs of the South will be union jobs.” With a growing shortage of skilled workers, manufacturers, especially those in the EV industry, will need to offer competitive wages and benefits to attract and retain talent.

But it’s not just about monetary compensation. Companies will also need to prioritize workplace protections, foster a positive work environment, and provide greater transparency, engagement, and communication with their workforce. These factors will likely become standard practices for companies looking to build a dependable and committed workforce.

Is Your Compensation Package Competitive?

With these changes in the labor market, it's more important than ever for companies to ensure their compensation packages are competitive. Offering a competitive package isn't just about staying in line with the market—it's about attracting and keeping the best talent in a field that is growing fast.

If you're unsure whether your compensation package meets the market standard, Impel Careers can help. As a staffing agency focused on the EV industry, we understand what today's workers are looking for.

Partner with Impel Careers today and make sure your workforce is prepared for the future of the EV industry.

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