Title: President Joe Biden Urges Fair Compensation as Auto Workers Strike Over Contract Negotiations
Date: September 15, 2023
President Joe Biden delivered a speech from the White House today, emphasizing the need for fair compensation for workers in light of record corporate profits made by auto companies. The speech addressed the ongoing strike by the United Auto Workers (UAW), which began when the union failed to reach a contract agreement with General Motors (GM), Ford Motor, and Stellantis.
Biden acknowledged that the companies have made significant offers but believes they should go further to ensure that the record profits translate into record contracts for the UAW. In a bid to mediate negotiations, Acting Labor Secretary Julie Su and White House Senior Advisor Gene Sperling have been dispatched to Detroit, with both officials having been actively involved in the talks thus far.
“The extraordinary skill and sacrifices of UAW workers have contributed to the record profits enjoyed by auto companies in recent years,” said President Biden, expressing his view that these profits have not been shared fairly with the workers.
Approximately 13,000 auto workers have participated in the strike, affecting plants such as GM’s midsize truck and full-size van plant in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio. UAW President Shawn Fain specified that only workers in paint and final assembly at Ford will be joining the strike.
The Biden Administration has previously played a role in resolving union disputes, such as the recent dockworkers contract negotiations. While the President does not have the legal authority to intervene in this strike, he has urged both sides to continue negotiating.
However, this strike presents a challenge for President Biden, who has positioned himself as the “most pro-union president in American history.” The UAW’s demands partially stem from concerns over the President’s electric vehicle policies, which the union believes will result in job losses. Proposed Environmental Protection Agency standards call for a significant increase in electric vehicles. By 2027-2032, the goal is for 67% of new vehicles to be electric, leading to a projected 56% reduction in emissions.
The UAW, representing approximately 146,000 workers across Ford, GM, and Stellantis, endorsed President Biden in the 2020 election. However, they are yet to endorse him for re-election. The union’s demands include a 40% hourly pay increase, a reduced 32-hour workweek, a return to traditional pensions, the elimination of compensation tiers, and enhanced retiree, vacation, and family leave benefits.
Although the auto companies have made record proposals to address some of the UAW’s demands, the union remains steadfast in its stance. The automakers have offered wage increases of about 20%, cost-of-living adjustments, altered profit-sharing bonuses, and improved vacation and family leave policies.
This is a developing story, and updates will be provided as new information becomes available.