The pieces are aligning for President Joe Biden to claim victory for his pro-union stance as the second of Detroit’s Big Three car companies reaches a tentative agreement with the United Auto Workers (UAW), according to knowledgeable sources.
Stellantis has reached a deal with the union following intense negotiations, just days after the UAW reached preliminary terms with Ford. General Motors is now the only automaker left at the bargaining table, facing increasing pressure to reach an agreement as its competitors’ workers return to their jobs awaiting ratification of their agreements.
Details of the Stellantis-UAW deal have not been released yet, but they are expected to be similar to Ford’s agreement, as the union typically uses its first agreement as a template for others. Ford agreed to a 25 percent wage increase for workers over the course of the contract, along with other salary concessions.
While acceptance of the Ford and Stellantis deals by UAW members is not guaranteed, these are crucial steps toward resolving a six-week disruption in the automotive industry and its supply chains, which has resulted in billions of dollars in losses.
Biden is now closer than ever to overcoming a major concern as he enters into shared governance with new House Speaker Mike Johnson, just before another deadline to fund the government. This development alleviates the risk of unrest in the auto industry negatively impacting the economy as Biden campaigns for reelection.
Immediately after the UAW announced its agreement with Ford, their members returned to work, and it is likely that Saturday’s breakthrough will end the strike against Stellantis plants, which produce Jeep, Ram Trucks, Dodge, and Chrysler vehicles, in a short time as well.
The strike began on September 15, with Ford and GM initially offering 20 percent pay increases. Both companies increased their offers to 9 and 10 percent raises, respectively, and the UAW also adjusted its demand for 40 percent raises to match CEO pay growth over the past four years.
Both Democrats and Republicans have attempted to use the strike for political gain.
In September, Biden made history as the first sitting president in living memory to join workers on the picket line. This came a day before former President Donald Trump visited Michigan to taunt Biden and court blue-collar voters.
But Biden has additional tools at his disposal.
His administration has assigned deputies to be present on the ground. White House senior adviser Gene Sperling and acting Labor Secretary Julie Su have traveled to Detroit multiple times to meet with the parties and facilitate the bargaining process, according to a spokesperson from the Labor Department.
Meanwhile, the UAW has maintained some distance from the administration to avoid politicizing the ongoing negotiations and potentially alienating some of its members.
