Union negotiators are Game Theorists – 2023 UAW strike and its outcomes | with Marc Robinson
Dec 4, 2023
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In this episode, Marc Robinson, an expert in strategy and risk management with a rich automotive industry background, delves into the recent UAW strikes and negotiations from a Game Theorist perspective. He discusses key success factors for the UAW, broader implications for the automotive industry, and future union negotiations. Topics covered include simultaneous negotiations, corruption scandals within the UAW, demands made by the new union president, wage increases, joint venture battery plants, sustainability concerns, and the need for better preparation for future negotiations.
The UAW's success in union negotiations was influenced by their historical developments and strategic moves, signaling the importance of considering past experiences and implementing effective strategies.
During the negotiations, the UAW leader, Sean Fain, employed game theory principles like the game of chicken to assert his position, highlighting the significance of using strategic tactics to demonstrate toughness and achieve desired outcomes.
Deep dives
Overview of the United Auto-Worker strikes and negotiations
The podcast discusses the recent United Auto-Worker strikes and negotiations between the UAW and the Detroit 3 (GM, Ford, and Stellantis). It highlights the complex relationships and history between the union and the companies, including major concessions made during the financial crisis and previous strikes and corruption scandals. The podcast also explains the simultaneous negotiations in the US and Canada and the separate bargaining between the UAW and each of the three companies.
Strategy and tactics employed in the negotiations
The podcast explores the strategic moves and tactics employed by Sean Fain, the new leader of the UAW, in the negotiations. It discusses his aggressive demands, bargaining in public, and selective escalation of strikes at individual plants. The podcast emphasizes how Fain utilized game theory principles, such as the game of chicken, to assert his position and demonstrate toughness. It also mentions the companies' response, their patience in negotiations, and their efforts to cope with Fain's unpredictability.
Short-term success and long-term implications
The podcast examines the short-term success of the negotiations, highlighting the gains achieved by the UAW, including significant wage increases, cost of living adjustments, and the inclusion of battery plants under the contract. However, it raises concerns about the long-term sustainability of these gains and the potential negative consequences for the union and the Detroit 3. The podcast discusses the challenges faced by the union in coordinating supplier contracts and avoiding disruption in the industry. It also mentions the need for the UAW to unionize other manufacturers to maintain their gains and Sean Fain's vision for a revitalized labor movement.
In this episode, our guest Marc Robinson, strategy and risk management expert, shares details on the recent UAW strikes and negotiations. With his rich background in the automotive industry and his experience as an economist at General Motors in the past, Marc observed the recent negotiations from a Game Theorist perspective. He shares the key success factors for the UAW to complete the union negotiations in their favor ranging from historical developments to changes in the UAW’s strategic moves compared to past union negotiations. We also discuss the broader implications of these negotiations for the automotive industry, its supply chain, and future union negotiations.
Marc Robinson works as an independent strategy and risk management consultant, following a career as an internal consultant and economist at General Motors. It was there that he first introduced game theoretic concepts and tools, applying them to a vast range of applications such as strategic product or investment decisions, or negotiations with partners, suppliers, and unions. He also taught at UCLA and Stanford and worked on the Council of Economic Advisers under President George H.W. Bush.
If you want to read more on the 2023 UAW strikes, you can check out Marc’s website https://www.csuitenewsletter.com/, where he covered the topic extensively in several blog posts.
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