Biden Engages in UAW Contract Negotiations with GM, Ford, Stellantis

President Joe Biden is urging the United Auto Workers and Detroit automakers to reach a “fair agreement” that avoids the closure of plants, as contentious contract negotiations for approximately 150,000 unionized U.S. auto workers take place.

Biden, known as the “most pro-union president,” emphasized that these negotiations present a “win-win opportunity” for all parties involved, while advocating for a “fair transition to a clean energy future.” He also acknowledged the crucial role the union has played in establishing the American middle class, emphasizing the need for these new contracts to sustain it.

“As the Big Three auto companies and the United Auto Workers come together to negotiate a new agreement, one month before the expiration of their contract, I want to clarify my position. I urge all sides to collaborate and forge a fair agreement,” stated Biden in a statement released by the White House.

Biden’s statement precedes the expiration of the current four-year deals between the UAW and General Motors, Ford Motor, and Stellantis, which will expire at 11:59 p.m. ET on September 14. This comes after UAW President Shawn Fain previously stated that the union would withhold a reelection endorsement for Biden until concerns regarding the auto industry’s transition to electric vehicles are addressed.

Biden also emphasized the necessity of “taking every possible step to prevent painful plant closures,” although this may prove challenging as the union demands substantial pay increases, and Stellantis has already indefinitely halted production at an assembly plant in Illinois earlier this year.

The UAW regarded Biden’s statement as a victory, as union leaders like Fain have been advocating for a “just transition” to electric vehicles that safeguard UAW jobs.

“At this crucial moment in negotiations, we appreciate President Biden’s support for strong contracts that ensure well-paying union jobs now and facilitate a fair transition to an EV future,” said Fain in a statement.

There are concerns about the impact of electric vehicles on the union and its members, given that EVs require less manual labor. Additionally, there are significant concerns regarding how pay, benefits, and the organization of joint venture battery plants between automakers and battery suppliers will affect the union.

GM, Ford, and Stellantis have stated that they are negotiating in good faith with the union to secure contracts that benefit workers and enhance the competitiveness of the companies.

“We agree that it is crucial for all parties to collaborate on a fair labor contract that provides job security, supports fair wages and benefits for our team members, and enables companies to compete successfully both domestically and globally,” stated GM.