explain ghe conflict of interest between the US car manufacturers and the UAW.
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As an employer, the US car manufacturer negotiates with the union of automobile workers, UAW for an appropriate compensation based on profit-maximization of the firm, suitable working conditions, and security of tenure. As a union, the UAW presses the management for a higher than equilibrium wage rate, wage indexation against inflation, continuous assessment of wages with changing market conditions. Precisely,
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Explain ghe conflict of interest between the US car manufacturers and the UAW.
- The United Auto Employees (UAW), also known as the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, is an American labour union that represents workers in the United States (including Puerto Rico) and Canada. It was established in the 1930s as a component of the Congress of Industrial Organizations (CIO), and from 1936 until the 1950s, it experienced significant growth.
- Under Walter Reuther's leadership, the union was very important to the Democratic Party's liberal wing (president 1946–1970). It was renowned for winning high pay and pensions for auto workers, but after the 1970s, it was unable to unionise auto plants created by foreign-based car manufacturers in the South, and its membership began to steadily fall.
- Growing automation, a decline in the usage of labour, manufacturing shifts (particularly a response to NAFTA), and increased globalisation were all contributing factors.
- UAW employees today work in a variety of sectors, including higher education, healthcare, the casino gaming industry, and automobiles and auto components. The union's administrative centre is in Detroit, Michigan. The UAW had more than 391,000 active members as of February 24, 2022, and more than 580,000 retired members in more than 600 local unions. It also had 1,150 contracts with about 1,600 firms.
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