WASHINGTON — President Joe Biden expressed his belief on Friday that workers should receive fair compensation as auto companies generate record profits. This statement comes after the United Auto Workers union initiated a strike against General Motors, Ford Motor, and Stellantis.
In a speech at the White House, Biden acknowledged that the companies have made significant offers, but urged them to go further in ensuring that these record profits translate into record contracts for the UAW.
To aid in the negotiations, Biden announced that acting Labor Secretary Julie Su and White House senior advisor Gene Sperling would be dispatched to Detroit. He mentioned that both individuals have already been involved in the talks.
Biden emphasized that the auto companies have achieved record profits due to the extraordinary skill and sacrifices of UAW workers. In his view, these profits have not been shared equitably with the workers.
UAW President Shawn Fain issued a statement after Biden’s remarks, disagreeing with the characterization that negotiations have broken down. Fain affirmed the UAW’s alignment with Biden’s perspective on record profits leading to record contracts.
The strike began after contract negotiations ended without an agreement on Thursday night, prompting nearly 13,000 autoworkers to walk off the job. Workers from multiple plants, including GM’s facility in Missouri, Ford’s plants in Michigan, and Stellantis’ plant in Ohio, are participating in the strike.
In an upcoming interview with NBC News’ Kristen Welker on “Meet the Press,” former President Donald Trump expressed criticism towards Fain and voiced concerns about the future of autoworkers, suggesting that these jobs will soon disappear.
Ammar Moussa, spokesperson for the Biden campaign, issued a statement in response to Trump’s criticism, crediting the Biden administration with preventing the closure of auto companies and the outsourcing of American jobs. Moussa emphasized the potential devastating impact on the industry and millions of lives under Trump’s leadership.
The Biden administration has been involved in resolving various union disputes, including recent talks that resulted in a ratified dockworkers contract and the avoidance of a rail workers strike. However, in the case of the UAW strike, Biden does not possess legal authority to intervene and instead urges both sides to continue negotiating.
The UAW strike presents Biden with a challenging situation. While he has positioned himself as the most pro-union president in American history, the UAW’s demands partially arise from concerns about Biden’s electric vehicle policies, which the union believes will lead to job losses. Proposed Environmental Protection Agency standards for 2027-2032 call for a significant increase in electric vehicles, accompanied by a reduction in emissions.
The UAW, representing approximately 146,000 workers across Ford, GM, and Stellantis, has historically supported Democrats and endorsed Biden in 2020. However, it has yet to endorse him for reelection.
The UAW is seeking hourly pay increases of 40%, a reduced 32-hour workweek, the reinstatement of traditional pensions, the elimination of compensation tiers, the restoration of cost-of-living adjustments, and improvements to retiree, vacation, and family leave benefits.
Although the auto companies have made substantial proposals to address the UAW’s demands, they have not been sufficient to sway the union. The offers include wage increases of approximately 20%, cost-of-living adjustments, modified profit-sharing bonuses, and expanded vacation and family leave.
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