Biden urges auto union and Big Three automakers to settle, prevent strike.
President Joe Biden is urging the top three U.S. automakers and the United Auto Workers union to come to an agreement and avoid a strike.
The negotiations between the Detroit-based carmakers Ford, General Motors, and Stellantis and the auto workers union are still ongoing, with the critical labor contract deadline just a month away.
The UAW is demanding significant pay raises of 40 percent or more, along with increases in CEO salaries and a reversal of past concessions made by the union.
The White House is closely monitoring the negotiations as both sides are far from reaching a deal.
Strike Looming This Month
A potential strike by the auto union could have significant economic and political consequences for the United States.
In July, President Biden and UAW President Shawn Fain met briefly in the West Wing, where union leadership presented their demands to senior White House staff.
The contracts between UAW and General Motors, Ford, and Stellantis, which include brands like Dodge, Ram, and Chrysler, are set to expire on Sept. 14.
Mr. Fain rejected the most recent offer from Stellantis and publicly discarded a copy of the offer.
The union has authorized plans for a strike vote on Aug. 14 at all three companies, and the announcement is expected soon.
Historically, UAW would strike at one company while putting the other two on hold, focusing on reaching a deal with the first company before moving on to the others.
The union typically follows this pattern of striking at the remaining two automakers.
Green Agenda
The labor negotiations are a sensitive topic for President Biden and Democrats as they navigate their green agenda of transitioning to electric vehicles while supporting union workers.
“As the Big Three auto companies and the United Auto Workers come together—one month before the expiration of their contract—to negotiate a new agreement, I want to be clear about where I stand. I’m asking all sides to work together to forge a fair agreement,” said President Biden in an Aug. 14 statement.
Although the AFL-CIO has already endorsed President Biden’s reelection bid, UAW has yet to make a presidential endorsement.
The president reiterated his support for electric vehicles while urging the companies to address the union’s concerns about the transition to battery-powered vehicles.
In his speech, he emphasized the union’s ”fair transition” to clean energy, highlighting the potential for more middle-class jobs.
UAW is concerned about the automakers’ plan to completely switch to EVs by mid-century and has expressed worries about economic issues, such as federally subsidized work going to non-union battery plants.
President Calls for Compromise
President Biden also praised key union priorities, including the right for workers to organize, providing family-supporting jobs, and ensuring fair industry transitions that prioritize retooling, rebooting, and rehiring in the same factories and communities at comparable wages.
However, the lower wages at battery production facilities compared to other manufacturing teams remain a point of contention for UAW.
Additionally, assembling a battery-operated EV takes about two-thirds less time than a vehicle with an internal combustion engine and transmission, as it has fewer moving parts.
UAW’s demands, released in early August, include protections in case of plant closures and significant pay raises.
The union also insists that workers at joint-owned battery plants receive comparable wages and safety standards as other union workers.
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