A US Energy Department plan to lend $9.2 billion to a joint venture between Ford and South Korea-based EV battery producer SK On in order to build three battery plants in the US has drawn pushback from the United Auto Workers (UAW) union.
On Friday, UAW president Shawn Fain slammed the decision, claiming the decision took "no consideration for wages, working conditions, union rights or retirement security" and will only create low-paying jobs.
"Why is Joe Biden’s administration facilitating this corporate greed with taxpayer money?” he added.
SK is a unit of SK Innovation, the other half of the BlueOval SK joint venture along with Ford. The $9.2 billion loan would be the biggest ever granted by the DOE’s loan program and would go toward building battery plants in Tennessee and Texas, the companies announced.
Ford disagreed with the UAW’s assertion, stating Friday that the company "expects that BlueOval SK will pay competitive wages and benefits to attract and retain the workforce needed to build high-tech batteries."
The workers will also be able to choose whether or not they organize, Ford said.
The Biden administration, for its part, said the White House and the UAW have the same goal "to ensure the future of the auto industry is made here in America, with good-paying, union jobs.”
In May, the UAW said it would not yet endorse Biden for reelection due to his EV policies.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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