UAW’s negotiations impacted by loophole in the Inflation Reduction Act

Executive Director of Good Jobs First, Greg LeRoy, joined the America’s Work Force Union Podcast to talk about loopholes in the Inflation Reduction Act and the impact on the economy. LeRoy also talked about similarities to the loopholes found in the Clean Energy Savings For All Initiative and why the UAW’s negotiations are being impacted by them.

The Inflation Reduction Act is now a year old, and some loopholes in the bill are being exposed. Some battery factories will earn $1 billion a year, each year, for the life of the act. These are all being funded under the 45X clause in the Inflation Reduction Act (IRA) and were originally intended for the building phase of the project. Unfortunately, the jobs in the production phase are not impacting the workforce in a positive way, and union workers are being left out.

This is the second time LeRoy has seen a situation where legislation doesn’t provide safeguards for sustained good union jobs. The Clean Energy Savings For All Initiative under President Obama was the last time LeRoy saw these issues. At the time, they were able to address the issues and get the bill adjusted. LeRoy explained how Congress could possibly fix the gaps in the IRA now.

The United Autoworkers are now facing many issues during negotiations with the Big Three Automakers in Detroit related to the issues with the IRA. The one battery production provision will cost taxpayers nearly $2 billion in the IRA’s lifetime. As the push to become electric continues to impact the automotive industry, the UAW is fighting against the possibility of non-union jobs taking over the production of new battery factories of the Big Three. While they are still fighting for a new contract, LeRoy believes it’s an uphill battle that the UAW is facing now.

For more from Good Jobs First, please press play on the episode above!