Biden Calls for Auto Union and Big 3 Automakers to Reach Deal, Avoid Strike

Members of the United Auto Workers (UAW) and supporters picket outside of General Motors Detroit/Hamtramck Assembly in Detroit as they strike on Sept. 22, 2019. Jeff Kowalsky/AFP via Getty Images

President Joe Biden has called for the top three U.S. automakers and the United Auto Workers (UAW) union to settle contract talks and avoid a strike.

The Detroit-based automakers Ford, General Motors, and Stellantis are still negotiating with the auto workers union, one month ahead of the critical labor contract deadline.

UAW is demanding massive pay raises of 40 percent or more, in conjunction with increases in CEO salaries over the past four years and after a reversal of past concessions by the union.

The White House has been closely monitoring the talks as sides remain far apart from a deal.

Strike Looming This Month

An auto union strike could have massive economic and political consequences for the United States.

President Biden and UAW President Shawn Fain met briefly in the West Wing in July while union leadership gave senior White House staff their demands.

The three contracts between UAW and General Motors, Ford, and Stellantis—which sells cars and trucks under the brands of Dodge, Ram, and Chrysler—are due to expire on Sept. 14.

Mr. Fain rejected the most recent offer from Stellantis and filmed himself throwing a copy of the offer into the trash for members.

The union authorized plans for the first strike vote on Aug. 14 at all three companies; the outcome is expected to be announced soon.

Historically, UAW has gone on strike at one of the three companies and put the other two on hold while it focuses on reaching a deal with the first.

The union normally follows up with a strike at the other two automakers.

Green Agenda

The labor negotiations are a sensitive topic for President Biden and Democrats, as they try to balance their green agenda of forcing the country to transition to electric vehicles with their traditional support for 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,” President Biden said in an Aug. 14 statement.

Although the AFL-CIO has already endorsed President Biden’s reelection bid, calling him the “most pro-union president in our lifetimes,” UAW has yet to make a presidential endorsement.

The president reaffirmed his support for electric vehicles while urging the companies to address the union’s concerns over the transition to battery-powered vehicles.

In a nod to UAW’s demands, he emphasized the union’s “fair transition” to clean energy in his speech, touting the technology as a path for more middle-class jobs.

UAW is concerned about the plan by the three automakers to entirely switch from traditional gas-powered vehicles to EVs by mid-century.

The union has expressed concerns over a range of economic issues affecting the industry, such as federally subsidized work going to non-union battery plants, with the backing of the Biden administration.

President Calls for Compromise

President Biden went on to praise key union priorities, such as the right for workers to organize, providing jobs “that can support a family,” and ensuring that industry “transitions are fair and look to retool, reboot, and rehire in the same factories and communities at comparable wages, while giving existing workers the first shot to fill those jobs.”

However, the battery production facilities pay workers less, unlike the rest of the manufacturing teams, which is a sore spot for UAW.

It also takes approximately two-thirds the time to assemble a battery-operated EV as it does a vehicle with an internal combustion engine and transmission, as it has fewer moving parts.

UAW’s demands, which were released in early August, specifically asked for protections in the case of plant closures, as well as major pay raises.

The union also demanded that workers at the joint-owned battery plants be brought up to comparable wage and safety standards as other union workers.

“Companies should use this process to make sure they enlist their workers in the next chapter of the industry by offering them good paying jobs and a say in the future of their workplace,” President Biden said.

A recent letter from Senate Democrats suggested that automakers include those changes in their contracts.

Union, Automakers Hear Biden’s Plea

UAW and General Motors separately welcomed the president’s comments, while praising different parts of his address, although he didn’t directly address the joint battery plants by name.

Mr. Fain said the union agreed “with the president that the Big Three’s joint venture battery plants should have the same strong pay and safety standards that generations of UAW members have fought for.”

UAW also wants President Biden to show more support for its position in his administration’s plan to move the United States to a green energy economy.

A senior administration official told Politico on Aug. 10 that UAW had no expectation that the president would discuss specific demands.

Meanwhile, GM stated, “We agree it is critical for all sides to work together on a fair labor contract—a contract that provides job security and supports good wages and benefits for our team members while enabling companies to compete successfully domestically and globally.”

The Epoch Times reached out to UAW and General Motors for comment but received none by press time.