President Biden is urging car manufacturers and union leaders to forge a deal and avoid a strike as exchanges between Big-Three automakers and UAW representatives intensify.
Speaking to automakers Stellantis, General Motors and Ford, Biden strongly advised that three companies “take every possible step” to support and maintain their current workforce, even as the industry’s shift to electric vehicles forces factory shutdowns for re-tooling. Electrification has become a key issue amidst UAW contract negotiations, as workers fear that the transition from petrol and a move to affordable EVs will lead to layoffs and payment reductions. The President acknowledged these concerns in his statement: “The middle class built America, and unions built the middle class…The need to transition to a clean energy economy should provide a win-win opportunity for auto companies and unionized workers.”
However, Biden warned union leaders against pursuing unreasonable demands, such as massive pay increases. The organization is proposing a 46% wage increase over the next four years to address rising costs of living and other economic factors. Although UAW president Shawn Fain has remained adamant that members will strike should automakers fail to acquiesce before September, Biden noted that car manufacturers still need to “compete domestically and globally.” Although automakers have said they will continue to work with union representatives, OEM executives have shown little interest in adopting the proposed wage hike.
President Biden’s comments come as the UAW and Big-Three car manufacturers trade blows over union contracts. Throughout the negotiations, Fain has stayed committed to battling “corporate greed.” Last week the labor chief threw a proposal drafted by Stellantis into a trashcan during a Facebook live stream. The UAW leader has also clashed with Biden over his administration’s lack of explicit support for unions, a sentiment no doubt solidified by the federal government’s decision to force an agreement between rail companies and unionized workers last year. Despite the organization’s historically left leanings, it has so far declined to endorse the President’s 2024 re-election campaign.
