Unions Take Aim at South After UAW Win

The United Auto Workers’ first-ever victory at a foreign automaker in the South marks a momentous gain for unions in a region that traditionally has been hostile to organized labor and is now in the midst of a manufacturing boom.

The win, in the face of stiff opposition from six Southern governors who said unionization would imperil jobs and future investments, is expected to trigger fiercer battles between organizers and elected officials and others resistant to their campaigns.

“The business community in right-to-work Southern states has largely been immune to sustained, well-funded organizing drives,” said Michael Lotito, co-chair of the Workplace Policy Institute at Littler, a law firm that advises employers on labor issues. “It seems those days may be coming to an end.” 

The UAW succeeded Friday in organizing about 4,300 workers at a Volkswagen plant in Chattanooga, Tenn., winning 73% of workers who cast ballots. Union officials said the win showed the UAW’s stronger position after securing pay raises in last year’s strike at the Big Three automakers, as well as greater receptivity to unions, especially among younger workers. 

The Wall Street Journal

Linda McMahon set to be first CEO of Dallas Economic Development Corp.

Linda McMahon, longtime leader of The Real Estate Council in Dallas, is set to become the first CEO of the newly created Dallas Economic Development Corp.

The Dallas EDC announced May 3 that McMahon is the sole finalist for the leadership role and could begin the position in July. The board is scheduled to vote on her appointment on May 7.

McMahon would take over an organization aimed at supporting local businesses, promoting sustainable economic development and enhancing infrastructure in the heart of Texas’ largest metro area. The Dallas EDC is an independent nonprofit focused on strengthening and expanding the city’s economic growth by attracting business investments, supporting job creation and marketing the city’s competitive advantages.

Dallas Business Journal

Hyundai’s Metaplant is in Georgia. Here’s why it’s buying Texas solar

When Hyundai Motor Group announced two years ago it would build a massive new electric vehicle “Metaplant” near the Georgia coast, the company committed to operate using 100% renewable energy from the start of mass production, expected later this year.

On Earth Day this year, Hyundai and key suppliers announced a huge power purchasing agreement, saying it would buy enough solar power to “support sustainable manufacturing” at the Metaplant and other U.S. factories.

But aside for a few solar panels on its Bryan County carpark, none of that renewable energy is being produced — or used — in Georgia.

Instead, Hyundai has a “virtual” power purchase agreement to buy 70% of the output from a new solar array in Bell County, Texas, and resell it on the local Texas market for points known as “renewable energy credits.” The company uses these credits to lower its calculated emissions.

Meanwhile, the Bryan County Metaplant will continue buying electricity from Georgia Power, which counts renewables as only about 7% of its energy mix. Recently, the utility won state regulators’ approval to build more fossil fuel-powered generators along with extra battery capacity to store electricity.

Atlanta Journal Constitution

Atlanta EV company EnviroSpark raises millions from investment firm

EnviroSpark, an Atlanta-based electric vehicle charging company, announced on Thursday it received a $50 million investment from Basalt Infrastructure Partners.

The investment comes at a time when electric vehicle companies have faced challenges and venture capital deals remain lowTesla has cut its EV charging business, done layoffs and reduced car prices.

Rivian Automotive Inc. has done two rounds of layoffs this year, lowered the starting price of its R2 model and delayed construction of its second manufacturing plant in Georgia.

Atlanta Business Chronicle

Massive $3 billion Apex, N.C. development moves closer to breaking ground (renderings)

A massive master-planned community in Apex is getting ready to break ground.

RXR, the New York developers behind Veridea, a $3 billion mixed-use development, will start site and infrastructure work this fall with plans to go vertical with the first buildings in early 2025. But plans for phase one have changed slightly as the developer adjusts to the shifting commercial real estate market.

Rebecca D’Eloia, executive vice president and development project executive for RXR, said the first buildings to go up will be the multifamily with ground-floor retail. Following that will be the industrial space of which there will be 213,000 square feet in the first phase.

The Veridea development will be a multi-year, multi-phase project that will cover 1,200 acres along N.C. Highway 55. When complete, it will have 8,000 residential units; 3.5 million square feet of retail, hospitality and civic space; 12 million square feet of commercial space that includes life sciences and industrial; and public open space and walking trails.

Triangle Business Journal

Manufacturer eyes North Carolina for 500-job, $100M investment

A window and door manufacturer is planning an investment that could create hundreds of jobs in a small Johnston County town, according to sources with knowledge of the plans.

On Thursday, the company is expected to announce a roughly $100 million investment that will create around 500 jobs in the Town of Selma, according to multiple sources. The average wages for these jobs will be above $50,000, the sources say — well above the town’s median household income of $29,325, according to estimates from the U.S. Census Bureau.

While most sources who spoke to the Triangle Business Journal declined to name the company linked to the investment, one source said the company is New York-based Crystal Window and Door Systems. The company was founded in 1990 and has five major production facilities across the country.

“At this moment all these discussions are at early stages and very preliminary,” Steve Chen, CEO of Crystal Window and Door Systems, said in an email Wednesday when asked about the potential project.

In April, Crystal Window and Door Systems announced a $121 million investment to construct an advanced manufacturing facility and regional corporate headquarters in Texas — a move expected to create 504 jobs.

Triangle Business Journal

Deere considering expanded Triad operations with new Forsyth County, N.C. site

John Deere evidently likes the Triad.

The company was identified Thursday as the entity considering a $73 million, 151-worker manufacturing facility in Forsyth County.

County commissioners approved a package of economic-development incentives worth up to $944,006 over five years for John Deere Kernersville LLC. The incentives are in return for the $47 million investment in real estate and $23 million in machinery over five years and the creation of at least 151 new full-time equivalent jobs with an average annual wage of at least $64,362.

The payments, conditioned on making the investment and the jobs, would amount to no more than 50% of the property taxes generated by the project.

The project would continue Deere’s expansion in the Triad. Last year, it announced a joint venture with Germany’s Kreisel Electric to build battery packs for electrified heavy equipment.

It already had an excavator factory in Kernersville, having opened it in 1988 with Hitachi and taking it over completely after the joint venture ended in 2021. The facility ranked as the Triad’s 18th largest manufacturing facility with about 850 employees, as of this past fall, according to TBJ research.

Triad Business Journal

‘We have to win Oracle over.’ A huge upside for Nashville tech is in sight

Chris Cochran believes Oracle Corp.’s world headquarters relocation will generate a critical ingredient for turning Nashville into a major technology hub.

But only if Nashville can actually keep Oracle’s headquarters.

Cochran knows Oracle: He worked there for about six years, leading the Southeast region of sales managers for the company’s large corporate and institutional clients. Cochran also knows tech: He is co-founder and CEO of Brentwood-based FreightWise LLC, a shipping software company that has topped the Business Journal’s ranking of fastest-growing private companies three years in a row.

The combo of those vantage points gives Cochran perspective on the potential impact of Oracle Chairman Larry Ellison’s pronouncement on April 23 that Nashville will become the company’s global headquarters. Ellison co-founded the software business in Silicon Valley in the late 1970s. Months into the Covid-19 pandemic, Oracle changed its headquarters to Austin.

Nashville Business Journal

Geartek expanding operations in Alcorn County, Miss.

Hydraulic gear pump and motor manufacturer Geartek is expanding its operations in Corinth. The project is a $3.8 million investment that will create two new jobs.

A division of Hydraulic Analysis, Inc., Geartek’s products are used in a variety of industries, including forestry, energy, site clearing and mining. The company has long-established local ties to Corinth and is expanding its existing manufacturing facility by approximately 8,500 square feet to accommodate new manufacturing equipment for added production capacity.

The Mississippi Development Authority is providing assistance through the Mississippi Flexible Tax Incentive, or MFLEX, program. Additional support is being provided by Alcorn County and the city of Corinth.

Mississippi Development Authority