IUE-CWA Announces Precedent-Setting Neutrality Agreement with Semiconductor Maker Akash Systems

In a significant milestone for the semiconductor manufacturing industry, IUE-CWA, Alameda County Building and Construction Trades Council, Jobs to Move America, and Akash Systems, an innovative chip-maker, have announced labor agreements covering both construction and production workers, including a historic first-in-the-industry labor neutrality agreement for semiconductor production workers at a new $432 million Akash Systems factory set for construction in West Oakland, Calif. The facility will employ an estimated 500 workers over the next five years, of which about half will be production-related.

Under the agreement signed by IUE-CWA and Akash Systems, production workers at Akash will be able to exercise their freedom to form a union without interference from the employer. The groups plan to collaborate with Jobs to Move America on a strategy to deliver benefits to the West Oakland community, including a workforce development plan encompassing recruitment and training of underrepresented groups.

"As we ramp up semiconductor production in the U.S., companies can choose whether or not to use the sector’s expansion to create high-quality jobs for American workers. Akash has proven that this can be a win-win for everyone,” said IUE-CWA President Carl Kennebrew. “Community-sustaining, good union jobs are essential for the prosperity of America's semiconductor industry. This agreement with Akash is a game-changer, not only for the hundreds of workers at the new Oakland factory but also for setting a powerful precedent for workers across the industry to unite and elevate standards for these jobs nationwide."