Sept. 15 (UPI) — In less than 24 hours after the United Auto Workers (UAW) union commenced a strike demanding better pay and benefits, President Joe Biden addressed the issue. On Friday, Biden expressed his understanding of the workers’ frustration considering the automakers’ recent profits.
Biden emphasized that UAW workers deserve a contract that reflects the record profits achieved by auto companies. According to the president, these profits have not been fairly shared with the workers.
During a video livestream on Friday, Biden stated, “While nobody wants a strike, I respect the rights of workers to utilize the collective bargaining system. I comprehend the frustration of the workers.”
He acknowledged that the automakers have presented significant offers, but he believes they should go even further to ensure that their substantial corporate profits result in record contracts for the UAW.
“The fact is, autoworkers played a crucial role in establishing America’s middle class,” Biden remarked. “They should be provided with a contract that sustains them and supports the middle class.”
Meanwhile, the U.S. Chamber of Commerce called for an end to the strike on Friday, also blaming Biden for the current impasse in labor negotiations.
In a publicly released statement, U.S. Chamber of Commerce CEO Suzanne P. Clark said, “The UAW strike and the ‘summer of strikes’ are direct consequences of the Biden administration’s ‘whole of government’ approach to promoting unionization regardless of the cost. The chamber urges the UAW to halt the strike and return to the negotiation table.”
Biden announced that he is dispatching acting Labor Secretary Julie Su and Senior White House Adviser Gene Sperling to Detroit to offer their support in reaching a contract agreement between the parties involved.
The UAW initiated strikes on Friday at GM’s Wentzville Assembly plant, Ford’s Michigan assembly plant, and Stellantis’ Toledo, Ohio, assembly complex. This marks the first-ever simultaneous UAW strike against all three major automakers.
The union is demanding a 40% pay increase over the duration of the four-year contract, citing a 40% raise in automaker CEOs’ salaries over the last four years. The UAW is also seeking the reinstatement of an automatic cost of living adjustment based on inflation.
In addition, the union aims to abolish the two-tier pay system that provides lower wages and excludes pensions and healthcare benefits for new autoworkers. The UAW believes it takes several years for these workers to reach wage and benefit parity with full UAW employees.
In 2008-09, the UAW made significant concessions on these benefits when the auto companies faced bankruptcy.
Furthermore, the UAW is pushing for defined benefit pensions for all workers, a reduced work week, increased paid time off, limitations on the use of temporary workers, and improved retiree benefits.
According to the UAW, the cost of the union contract constitutes approximately 5-6% of the price of a new vehicle. They argue that the companies are overcharging consumers and that the union should not be held responsible for high car prices.
GM CEO Mary Barra expressed her disappointment and frustration with the strike on Friday during an interview on Good Morning America. She stated, “If you look at the offer we have presented, it is a very strong offer.”
Barra’s current total annual compensation amounts to $29 million.
A CNN reporter questioned her about her compensation and why workers should not receive similar percentage raises to those of CEOs.
Barra explained that 92% of her compensation is tied to company performance. She mentioned that when GM performs well, UAW workers receive profit-sharing checks.
The UAW insists that lump sum bonus payments are not a substitute for substantial wage increases and the restoration of the cost of living benefit.
According to the union, its members’ compensation has been gradually eroded by concessions and inflation for many years. Now that auto companies are experiencing record profits, the UAW believes it is time for the workers to catch up.
On Friday, the UAW is organizing a strike rally in Detroit featuring Senator Bernie Sanders, I-Vermont.
If no agreement is reached soon, UAW President Shawn Fain has stated that he will escalate the strike by calling for strikes at additional plants.
The 2019 UAW strike against GM resulted in billions of dollars in losses for the company.
