Subject: LRI INK: SpaceX, UAW, Labor vs. Labour, Union Harassment

February 12, 2026

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Is UAW's Volkswagen Contract A 'Historic Win'? More Like a Reality Check

by Kimberly Ricci

You might have heard about how the UAW and Volkswagen finally reached a tentative agreement for a contract last week in Chattanooga. In a video announcement and blog post, Shawn Fain crowed about "a life-changing first agreement" and "a historic breakthrough for Southern autoworkers" with 20% raises that make for great headlines that don’t tell the real story.


What Fain aims to do here is erase the nearly two-year mess involving the Southern foreign-owned auto plant unionized by the UAW. That vote happened in Apr. 2024, and some workers grew so frustrated that they gathered signatures for a decertification petition. They further alleged that the union wouldn’t allow them to vote on VW’s Oct. 2025 final offer, so let’s compare that company offer with the tentative agreement.

The Math of Those Raises Doesn’t Add Up to “Historic”

First, it’s worth looking back at the UAW’s campaign to organize Mercedes-Benz workers in Alabama. Fain had criticized 6% annual raises as “meager” and indicative of “the Alabama discount.” (And then these workers surprised him by voting against unionizing.)


Well, you’d think that the UAW’s “historic” tentative deal with VW would offer higher raises than the ones that received Fain’s disapproval, but that’s not the case. Instead, these VW workers would receive a 20% increase spread over four years, which averages out to 5% annually. Once you subtract union dues–outlined in the UAW’s constitution as two hours of pay or up to 1.44% per month–the net increase isn’t effectively higher than the 3-4% annual increases that are standard for many employers.


Tellingly, Volkswagen’s ”last, best, and final" offer also included a 20% wage boost over four years. At the time, that wasn’t enough for the union, which persuaded its workers to authorize a strike.


Then there’s the subject of bonuses. VW had offered a $4,000 ratification bonus, first-ever COLA benefits, and profit sharing. VW even offered to increase the bonus to $5,550 for timely ratification. In contrast, the UAW’s deal resulted in a $6,550 one-time bonus and $2,550 in annual bonuses.


Yes, those are larger bonuses, but workers lost the time value of earlier opportunities after waiting nearly two years for a contract. There’s also the lingering question of whether the VW raises will be retroactive, although it seems like if this was the case, Fain would have bragged about it, just like he did in 2023 when the Big Three automaker deals were announced.

When "Wins" Look a Lot Like What Was Already Offered

The UAW press release claims a deal with "significant improvements over the company's proposal in October." However, the core wage increase remains identical. Healthcare improvements were also part of VW's final offer, which included reduced premiums. The bonus structure has been adjusted, but the total compensation package is very similar to what the company offered before strike authorization.


So, it sounds like VW workers are being asked to ratify a deal that’s remarkably like what the company offered, only repackaged with different bonus structures and no mention of VW’s offered profit sharing.

Conclusion: What This Means for Southern Organizing

Fain previously declared that the future of the union "hangs in the balance" of this contract. If that's true, members should ask why their union spent nearly two years arriving at roughly the same destination offered by VW.


Fain also made no secret of his dream to double his union's size by organizing autoworkers in the South. Now, he’s asking VW workers to accept a deal with few meaningful results. These workers might be disappointed, yet they’re likely also exhausted by the wait. They might reason that this tentative agreement is better than nothing and vote “yes.”


However, “better than nothing” is a sad state, and this tentative agreement is hardly a compelling pitch for workers of other foreign-owned automakers that Fain vowed to unionize. Yet the UAW has made it clear that they will continue trying to organize the South. We’ll be watching to see whether their lackluster contract results fail to impress targeted workers.


Why Caring Is a Leadership Requirement, Not a Personality Trait

by Michael VanDervort

“Caring” still gets treated like a soft skill.


Nice to have. Good for morale. Secondary to execution.


That framing misses the point.


In Approachable Leadership, the model developed by Phillip B. Wilson, caring is not about empathy or tone. It is about whether leaders have access to accurate information early enough to act on it. If employees don’t see them as approachable and caring, they probably don’t.


Leaders don’t fail because they don’t care. They fail because they don’t get the truth soon enough, because their employees are reluctant to talk with them.

Leaders who are not perceived as approachable often do not get the truth early enough to lead effectively.

Power distance is automatic

Approachable Leadership starts with a basic reality of organizational life: power changes behavior.


The moment someone becomes “the boss,” power distance appears. Authority over pay, schedules, discipline, and career changes what people say, when they say it, and what they decide to keep to themselves. This happens before leaders announce open-door policies or describe themselves as approachable.


On The Leadership Project Podcast, Wilson captured it succinctly:


“Power changes the room before the leader ever opens their mouth.”


This is not a failure of intent. It is predictable human behavior.


Caring matters because it is how leaders actively counterbalance that distance so information can move upward without fear. Not to be liked. To stay informed.

Silence is calculation, not disengagement

When issues surface late, leaders often assume employees were disengaged or indifferent.


That explanation is usually wrong.


Before speaking up, employees quietly assess risk:

  • Is this safe?

  • Will this matter?

  • Will anything change?

When the answers trend no, people adapt. They soften messages.  They work around leadership instead of through it.


From the leadership seat, this often looks like stability because you aren’t hearing about problems. It is not. It is filtered information. Leaders still receive information. It just arrives late and is incomplete.


As Wilson warned on the Human Capital Leadership Podcast,


“By the time leaders hear about a problem, it’s often already expensive.”

Approachability functions as a signal system

Approachable Leadership does not define approachability by personality. It defines it by behavior that determines whether people believe honesty is worth the risk.


Three conditions consistently determine whether employees speak up early:

  • Right Space: Leaders are genuinely available when issues arise, not just theoretically accessible.

  • Right Feeling: People leave conversations feeling heard, not evaluated mid-sentence.

  • Right Action: Leadership follows through, particularly when the message is inconvenient.

Miss any one of these and silence becomes the rational choice. Don’t let this happen.

The practical ER takeaway

Approachable leadership is often discussed in cultural terms, but its ER implications are hard to miss.


When leaders are approachable, issues surface internally instead of externally. Conflict gets addressed in a timely manner. Employees are more likely to believe concerns will be heard, addressed, and acted on without needing third-party intervention.


When that belief disappears, employees do not disengage. They redirect to agencies and labor unions.


Practicing approachable leadership does not guarantee a union-free workplace. But it materially improves the odds by strengthening internal trust, surfacing issues early, and reinforcing management's credibility as a problem-solver rather than a barrier.


At the same time, the upside goes well beyond union avoidance. Organizations that get this right tend to build workplaces where accountability is clearer, feedback is earlier, and performance conversations are less defensive. In other words, environments where people can do their best work without fear, and where workarounds can create conditions under which extraordinary workplaces can be successful.


Labor or Labour | Comparing Labor Relations: Canada vs. U.S

by Michael VanDervort

In this conversation, Phil Wilson and John Mortimer discuss the intricacies of Canadian labor law, comparing it with the U.S. system.


They cover the structure of labor boards, the dynamics of union membership, and the importance of fostering positive employee relations. The conversation highlights differences in how labor laws are applied in Canada and the U.S., the challenges unions face, and the importance of creating a great workplace to avoid unionization. The discussion also touches on the future of labor relations and the evolving landscape of employee rights.


Takeaways


  • Canadian labor law varies significantly from U.S. law.

  • Each province in Canada has its own labor regulations.

  • Canada’s labor boards operate differently from the U.S. NLRB.

  • Unions in Canada have a different relationship with employees compared to the U.S.

  • Employee relations are crucial for avoiding unionization.

  • Many employees prefer non-unionized workplaces.

  • The structure of labor boards in Canada promotes fairness.

  • Unions must earn their members’ trust to remain relevant.

  • Creating a positive workplace culture can reduce the need for unions.

  • The future of unions depends on their ability to adapt to employee needs.

Chapters

00:00 Introduction to Canadian Labor Law

02:55 Understanding the Structure of Labor Law in Canada

05:45 Differences in Employment Law Between Canada and the U.S.

08:54 The Role of Labor Boards in Canada vs. the U.S.

11:53 Unionization Processes and Challenges in Canada

14:52 Union Dynamics and Employee Relations in Canada

18:01 Comparative Union Density and Membership Issues

23:12 Understanding Labor Watch and Its Purpose

32:04 Creating Positive Work Environments

46:43 Decertification and Labor Relations in Canada vs. the U.S.


When a Union Decides a Wedding Is Fair Game

by Michael VanDervort

Weddings occupy a sacred and protected space in life. They are one of the few moments where people are allowed to plan joy without expecting to defend it. That a wedding, of someone totally unconnected with a labor union or labor dispute, becomes a battleground of harassment is a travesty of civility. 


A recent article describes how a labor union, acting collectively, chose to use a boycott to harass a private individual planning her wedding. The woman had no contractual relationship with the hotel at issue, no authority to resolve the labor dispute, and no involvement beyond listing a nearby hotel on her wedding website as a convenience for guests.


What followed was not a single informational outreach. The union engaged in a coordinated pattern of conduct over several months that targeted the individual rather than the hotel. 


That conduct reportedly included repeated calls to her personal phone number, outreach to friends and family members, contact with their workplaces, a protest staged outside the bride’s workplace, flyers calling her out by name, and the distribution of fake wedding invitations sent to loved ones that mocked the event itself.


This was not the act of a lone individual exercising poor judgment. It was an organizational decision by UNITE HERE. And that distinction matters.

Collective advocacy still has boundaries

The National Labor Relations Act grants labor organizations broad protection to engage in concerted activity. Boycotts, public advocacy, picketing, and appeals to consumers are all lawful tools when aimed at influencing the parties with the power to resolve a dispute.


What those protections do not do is erase every other legal or ethical boundary simply because the conduct is organized.


If the target is an individual, not an employer or labor dispute participant, and the conduct includes:

  • Repeated unwanted contact

  • Following or doxing

  • Online harassment campaigns

  • Threats tied to personal safety or reputation

Then state law remedies may apply, including restraining orders. The NLRA does not give unions a free pass to harass private citizens.

The secondary boycott issue cannot be ignored

Even viewed strictly through a labor-law lens, UNITE HERE's strategy raises serious concerns.


Section 8(b)(4) of the NLRA prohibits unions from coercing neutral third parties to pressure a primary employer. That prohibition applies to organizational conduct, not just individual acts. Targeting a private citizen, an unrelated workplace, or someone with no contractual or economic relationship to the dispute is not a gray area.


Those are precisely the kinds of facts that give rise to charges before the National Labor Relations Board, requests for injunctive relief, and potential monetary liability under Section 303 of the Labor Management Relations Act.

None of that advances the dispute. All of it creates avoidable risk.

This should trouble anyone who cares about labor credibility

Most labor organizations understand that public support depends on perceived fairness. Campaigns succeed when pressure is aimed at power, not proximity.

Weddings exist outside labor disputes for a reason. They carry no bargaining power, confer no leverage, and offer no path to resolution. Turning a wedding into a pressure point was not a strategic move. It was ham-handed. 


The decision did not strengthen the cause. It did not move the dispute forward. It made a labor organization look careless in its use of power. 


UNITE HERE should be ashamed.


SpaceX Scored a Double Win Against the NLRB, But There's A Twist

by Kimberly Ricci

Those who have watched U.S. labor law over the past year know that things have been, to put it mildly, unusual. Now, the NLRB is in reset mode to clear its case backlog, while regional offices are struggling with understaffing. And that’s only the operational side of their difficulties.

There’s also a pair of legal developments that could fundamentally change labor law enforcement. Both cases involve SpaceX, which in turn scored two wins against the Board. One case involves a jurisdictional declaration that strips the Board of authority over SpaceX, and the other involves a successful constitutional challenge to the Board’s structure.


Yet there’s a twist: SpaceX's success in shaking off NLRB jurisdiction might have inadvertently undermined its legal standing to challenge the agency's constitutionality, which could complicate future proceedings if that issue reaches the Supreme Court amid a circuit split.


If you think this sounds too circular to wrap your hands around, you are spot on. Let’s make some sense out of this developing situation.

The Jurisdictional Outcome

On Feb. 9, it was announced that the NLRB stepped away from a multi-year battle against the Elon Musk-led company. This notice came from Regional Director Danielle Pierce in a dismissal letter, in which she cited a Jan. 14 National Mediation Board (NMB) opinion and concluded, “Accordingly, the [NLRB] lacks jurisdiction over the Employer and, therefore, I am dismissing [this] charge.”


Long story short: The NMB had determined, in a case involving fired SpaceX workers, that the company doesn’t fall under the NLRB’s authority but, instead, is covered by the Railway Labor Act (RLA). In doing so, the NMB found that the RLA, which applies to airlines, has jurisdiction over SpaceX disputes because the company is in the business of providing commercial flights, and “[p]rior to entering outer space, space transport includes air travel within the same air space as airlines.”


The Board itself had no comment on the matter after the regional director agreed with this determination.


A side effect: The RLA is more employer-friendly than the NLRB because it makes organizing more difficult. The act raises the threshold for filing a union petition, and the RLA’s mediation requirements make strikes less likely. So, there are multiple reasons for SpaceX to be pleased with this part of the case’s outcome.

The Twist: Is SpaceX’s Standing Gone?

That said, this jurisdictional determination could backfire on SpaceX’s interests because of an interesting question: If the company is no longer subject to NLRB oversight, does it still have standing to challenge the agency's structure as unconstitutional?


To have standing in a lawsuit, a party must have a personal stake in the case’s outcome and an injury that the court could remedy. Since SpaceX apparently no longer answers to the NLRB, it likely doesn’t have sufficient interest in the Board’s structure to support a lawsuit.


Let’s keep going with this train of thought.

SpaceX’s Constitutional Challenge Against the Board

In Aug. 2025, the Fifth Circuit granted SpaceX an injunction, arguing that the Board’s structure could violate the separation of powers. The court agreed, finding that NLRB members and ALJs’ removal shields are unconstitutional. This ruling also froze ULP cases against SpaceX (and two other Fifth Circuit employers) on the grounds that subjecting companies to an unconstitutionally structured agency could cause “irreparable harm.”


The NLRB then declined to appeal, and the Supreme Court denied a motion to intervene by the AFL-CIO and OPEIU for lack of standing, so the Fifth Circuit’s ruling remains binding and benefits employers in states including Texas, Louisiana, and Mississippi.


However, SpaceX no longer falls under the NLRB’s jurisdiction, so that takes away an “irreparable harm” claim to establish standing if this issue goes to the Supreme Court. This could very well happen, since the Third Circuit barred employers from using injunctions to halt NLRB proceedings while arguing that the NLRB is unconstitutional. Similarly, the Ninth Circuit also rejected employers’ constitutional attacks on the Board.

What’s Next?

The only currently evident outcome of these SpaceX developments is that the NLRB’s authority is being eroded. Several employers, including Starbucks and Trader Joe’s, have also argued against the Board’s structure, and the NLRB chose not to defend itself against the Fifth Circuit’s ruling. Yet if the Supreme Court chooses to resolve the circuit split, it’ll likely do so without SpaceX’s participation, given the jurisdictional finding.


This complicated web might get messier, and clearly, the legal landscape surrounding the Board is in flux. This might not go much further if Congress or other courts step in to bolster the NLRB’s authority, but still, stay tuned.


About Labor Relations INK

Labor Relations INK is published weekly and is edited by LRI Consulting Services, Inc. Feel free to pass this newsletter on to anyone you think might enjoy it. New subscribers can sign up by visiting here.


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Contributing editors for this issue: Greg Kittinger, Michael VanDervort, and Kimberly Ricci.


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About LRI Consulting Services, Inc.

LRI Consulting Services, Inc. exists to help our clients thrive and become extraordinary workplaces. We improve the lives of working people by strengthening relationships with their leaders and each other. For over 40 years, LRI Consulting Services, Inc. has led the labor and employee relations industry, driven by our core values and our proven process, the LRI Way.

 

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