The United Auto Workers (UAW) has filed charges against General Motors and Stellantis with the National Labor Relations Board, alleging that the companies have failed to engage in fair bargaining. UAW President Shawn Fain made the announcement on Thursday after weeks of tense negotiations that could result in strikes at Detroit’s major automakers starting from September 15. Fain described GM and Stellantis’ bargaining stance as “insulting and counterproductive,” and accused it of being illegal. In response, GM and Stellantis expressed surprise and rejected the accusations, stating that they have been negotiating in good faith. The union has presented almost 1,000 demands during the negotiations.
Ford, on the other hand, has made a substantial contract offer that includes improved benefits and the largest wage increase its UAW employees have seen since 1999. The offer includes a 9% increase in wages over the four-year contract, lump-sum payments equivalent to 6% of wages, and a faster wage progression for employees. Temporary workers would also see a 20% wage increase to $20 an hour. The status of temp workers has been a contentious issue in the negotiations. UAW President Fain criticized Ford’s offer, saying it insults the workers and fails to meet their needs.
The looming possibility of a strike has raised concerns in the White House. President Biden is urging the union and automakers to reach a deal, as it places him in a challenging position of balancing his support for the labor movement with promoting electric vehicle manufacturing. To demonstrate his commitment to both causes, Biden announced that federal funding programs worth $15.5 billion will prioritize electric vehicle manufacturing projects that adhere to strong labor standards. The Department of Energy will consider factors such as wages and collective bargaining status when awarding grants and loans.
UAW President Fain has called on Biden for support during the negotiation process. The union broke from tradition by not endorsing Biden for reelection, stating that endorsements must be earned. Fain previously criticized the administration for subsidizing battery and EV factories without ensuring fair wages and working conditions. Biden’s latest announcement is seen as a way to reaffirm the administration’s commitment to the labor movement. Fain has expressed support for Biden’s efforts to encourage strong labor standards in the EV transition.
As the Department of Energy awards grants and loans for the conversion of gasoline auto factories to electric vehicle production, it will prioritize projects that commit to high wages and maintain collective bargaining agreements. It will also consider projects that aim to retain high-quality jobs in communities that currently host manufacturing facilities. Additionally, the department will invest in expanding domestic battery manufacturing and prioritize applicants with strong workforce practices and plans to create high-quality jobs.
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