The United Auto Workers (UAW) union has reportedly made progress in contract negotiations with the “Big Three” automakers of Michigan, though there is still some progress to be made, according to the organization’s president.
UAW strikes entered their fourth week on Friday, and the union held off on escalating worker walkouts for a third week in a row as new and unexpected concessions were made by General Motors (GM) this week, according to a report from Reuters. Crucially, the union expects that the concessions could put pressure on Ford and Stellantis to follow suit after GM allowed workers at its future battery plants to be covered by new contracts with the union.
“Our strike is working, but we’re not there yet,” UAW President Shawn Fain said during a live stream update.
Friday was the first deadline in two weeks in which the UAW didn’t order additional workers to walk out of facilities operated by the automakers after the union threatened to target a GM plant in Arlington, Texas that builds the Cadillac Escalade. Instead, Fain said that GM unexpectedly approved contracts covering three joint-venture battery plants being built with LG Energy Solutions.
“GM has agreed to lay the foundation for a just transition [to EVs],” Fain added.
GM did not confirm the statements, saying instead that negotiations were ongoing. LG declined to comment on the situation.
“We will continue to work towards finding solutions to address outstanding issues,” GM said in a company statement.
This is the first time in history that the UAW has lodged strikes against all three automakers simultaneously, and contracts have remained at a standstill, with battery plants being a key prospect of the talks. Ford CEO Jim Farley recently said the UAW was holding the automaker “hostage” with battery plants that didn’t yet exist, and the company even ceased construction on one new electric vehicle (EV) battery facility.
“This defines the transition to EVs,” said Harley Shaiken, a UC Berkeley labor professor. “Clearly, GM’s concession on the master agreement will positively be matched by Ford and Stellantis.”
Electrification has also been a focal point of the discussions, as many expect the transition to result in fewer available jobs than those currently utilized for internal combustion engine (ICE) production. Along with demanding a 40-percent wage increase over a four-year period (and several other demands), the UAW has highlighted the need for added job security amidst the transition.
Despite the progress, Ford said on Friday that it would be laying off an additional 495 employees at facilities in Ohio and Michigan, citing the impacts of the UAW’s strikes, according to a report from Automotive News. The layoffs add to around 7,900 Ford workers who are striking, along with another 1,800 who have lost their jobs because of a lack of available work due to ripple effects from the strikes.
On Tuesday, Ford increased its contract offers from just 20 percent in previous weeks to what it called an “unprecedented” set of pay raises amounting to a roughly 26 percent wage increase. With the addition of other parts of the contract, namely the cost-of-living adjustments (COLA), the automaker’s wage increases could offer workers close to a 30-percent wage increase, according to people familiar with the contract proposal.
The UAW held a rally in Chicago on Saturday, which you can watch via YouTube below. You can also learn more about recent concessions at the UAW website here.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
Elon Musk
xAI’s Grok approved for Pentagon classified systems: report
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.
Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.
Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards.
Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD.
Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible.
The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.
Elon Musk
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.
Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.
In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”
The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.
In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide.
Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.
Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.
In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.
News
Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict
The display comes as tensions between Tesla and IG Metall continue to escalate.
Tesla Giga Berlin is sending a strong message of solidarity amid its ongoing legal dispute with German union IG Metall.
In a post on social media platform X, Giga Berlin plant manager André Thierig shared an image of the facility’s lobby covered with a large banner that reads: “Progress. Innovation. Success.” He added that the slogan reflects what the facility has stood for since Day One.
“Our lobby at Giga Berlin covered in a huge banner these days. Progress. Innovation. Success – this is what we stand for since we started production in 2022 and how we will go into our future!” Thierig wrote in his post on X.
The display comes as tensions between Tesla and IG Metall continue to escalate.
The dispute began after Tesla accused a union representative of secretly recording a works council meeting at Giga Berlin. Tesla stated that it filed a criminal complaint after the alleged incident. Police later confirmed they had seized a computer belonging to an IG Metall member as part of their investigation.
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote on X at the time.
IG Metall denied the accusation and characterized Tesla’s move as an election tactic ahead of upcoming works council elections. The union subsequently filed a defamation complaint against Thierig. Authorities later confirmed that an investigation had been opened in connection with the matter.
Giga Berlin began production in 2022 and has since become one of Tesla’s key European manufacturing hubs, producing the Model Y, the company’s best-selling vehicle. The facility has expanded capacity over the past years despite environmental protests, labor disputes, and regulatory scrutiny.
xAI’s Grok approved for Pentagon classified systems: report
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
