Auto Tech Centers Inc

Auto Tech Centers Inc

Auto Tech Centers Inc

Auto Tech Centers Inc – Auto assembly workers unload a truck on an assembly line at an electric car plant in Normal, Illinois, on April 11, 2022. (Getty/Brian Cassella)

Federal and state governments are taking a leading role in supporting domestic electric vehicle (EV) production, providing a historic opportunity to establish high labor standards in one of America’s strongest manufacturing hubs. The development and implementation of the current new wage policy will help to maintain the high standards of the current auto industry workforce in the transition to new EV jobs.

Auto Tech Centers Inc

Auto Tech Centers Inc

In the coming decades, sales of EVs will likely outpace those of cars and trucks powered by gas engines, transforming the U.S. automobile industry. The federal government is investing heavily in this transition, investing billions of dollars in the Infrastructure Investment and Jobs Act (IIJA) dedicated to supporting EVs, and President Joe Biden’s economic plan promises to continue. In addition, local governments make their own money, offering a tax on consumers who buy EVs and an incentive tax on companies that build new power plants.

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However, without effective regulations in place, the EV transition could reduce the quality of jobs in the automotive sector.

Auto workers have fought hard for decades of collective action to make auto jobs a path to the middle class, especially for Americans without college degrees. In contrast, many domestic EV manufacturers offer low wages, low wages, and little opportunity for wage advancement—and poor working conditions for their employees.

To help the EV revolution create quality jobs, federal and state governments must create a new type of wage policy. Current wage laws require state-subsidized firms to pay the same hourly rate of pay and benefits paid to similarly situated workers. These laws ensure that government spending supports skilled workers and does not lower standards. They are common on government construction projects and for government service contractors, although they are rarely used in production. However, the current salary concept has great promise to maintain high standards in the automotive industry as it establishes electricity, but the law needs to be properly adapted to new jobs.

These incentives are based on existing revenue policies that can be adopted by the federal or state government and apply to any type of EV subsidy, whether it is a grant, loan, tax incentive, or consumer rebate. For example, the federal or state government may pass policies to ensure that firms receiving subsidies or tax incentives to help build or renovate an EV manufacturing facility are required to pay the prevailing wage. Similarly, federal or state consumer rebates on EV purchases may require that these rebates go only to companies that pay the prevailing wage. Indeed, governments in high-income countries may adopt such policies to help their workers compete for these jobs. Finally, wherever federal or state governments provide financial support for EV production, there is an opportunity to use prevailing wage law.

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Battery cell manufacturing demonstrates the importance of a well-designed wage policy in maintaining high labor standards. Batteries are the most important part of EVs and are at the center of the EV supply chain, given the importance of power—the engine, transmission, and drive shaft—in an internal combustion engine. Furthermore, all types of manufacturing jobs require similar worker skills.1 However, reports indicate that EV battery manufacturing jobs sometimes pay as little as $20 an hour, 2 while the typical unionized auto assembly worker makes up to $60 an hour. salaries and benefits.3

If union contracts cover enough workers for the union standard to be considered the prevailing standard — which can happen with other types of wage laws — workers at state-owned companies will earn up to $60 an hour in total wages. However, a well-designed wage policy could help build a strong domestic EV supply chain that gives American workers a path to the middle class, just as the traditional auto sector has done for generations. But, the example of the production of battery cells also shows that if better data is not available, the calculation of the reward can lead to low prices that can affect the current standards.

Setting higher standards now, while the U.S. electric car industry is still in its infancy, could affect auto worker wages for years to come. As important as it is, the current award is not the only regulation needed to ensure high quality in the EV revolution. Other necessary laws include those that prevent discrimination, promote domestic production, ensure compliance with existing labor laws, and respect workers’ right to trade unions and collective bargaining. , grievance procedures, protection from retaliation, and a firm voice—all of which are not covered by existing wage laws. However, the current award may be the most important policy to see a high level in EV activities.

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Furthermore, this type of legislation and its wider application could be important to support the quality of work in the main manufacturing sector – not just in EV manufacturing. In fact, workers in the auto industry and other parts of the manufacturing industry have been struggling to keep up with their high levels since before the EV revolution began. The increase in the use of part-time workers, among other reasons, increases the decrease in wages in the repair and production of automobiles. you have paid the minimum amount available for each hour.

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Setting higher standards now, while the U.S. electric car industry is still in its infancy, could affect auto worker wages for years to come.

The EV revolution provides an important turning point for policy makers and an opportunity to set higher standards. Sometimes in the past, during major changes in major industries such as railroads6 and transportation, 7 legislators have passed laws to protect the high standards that workers have achieved through collective bargaining. This is another time for politicians to do the same.

The following sections of this report explain in detail why wage regulation is important for EV development and how such regulations can work. The report provides a framework for creating EVs, examines the application of prevailing wage laws, discusses the elements of prevailing wage model laws, and provides an example of how EV prevailing wages are calculated.

Encouraged by government emissions requirements and tax incentives, American consumers will soon switch from fossil-fueled cars and trucks to battery-powered electric vehicles. The domestic auto industry, which employs nearly 1 million people in manufacturing across the country, 8 will shift from supplying internal combustion engines and electric hybrids to the electric motors and batteries that power EVs. This change will create hundreds of thousands of jobs to meet the growing demand for EVs, which are estimated to account for 50% of all passenger car sales by 2040.9 The Biden-Harris administration promises to accelerate change, sets a goal for EV. to sell. 50 percent by 2030.10

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Like the motor and drivetrain that power an internal combustion engine, batteries not only power the EV but also sit at the center of the entire EV supply chain and manufacturing process. The battery—including the production of battery cells, modules, and packs that power the EV—is one of the most important components of an EV, accounting for 25 percent to 30 percent of the vehicle’s total volume.11 Of course, because high battery cost, EV power is more expensive than internal combustion engine power.12

Today, most of the EV battery supply chain is in China, 13 but the federal government is committed to the strong development of the US EV battery sector. The IIJA provided $3 billion in battery investment and another $3 billion in battery development funding, in addition to $500 million for the emission-free school bus program and $200 billion for EV battery research.14 Other countries have gone further. . in providing subsidies and tax reductions to encourage firms to build factories15 and consumers to buy EVs.16

EV battery manufacturing in the United States is currently known for low wages and poor working conditions.17 For example, a White House supply chain report found that jobs in the new EV battery sector pay only $17 to $21 an hour.18 Another company – Tesla, which alone accounts for almost half of sales in the United States. In 201719 EV faced allegations of low wages, 20 racial discrimination, 21 labor law violations, 22 and unsafe working conditions. 23 The company even moved from California to Texas after the company’s CEO raised concerns about local orders. faced with halting production during COVID. 19 pandemic. Travis County, Texas, which will pay local workers a “living wage” of $15 per head

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