President Joe Biden remained firm with the United Auto Workers (UAW) as they embarked on a historic strike against the Detroit Big Three automakers – General Motors, Ford Motor, and Stellantis. This strike, the first in the UAW’s 88-year existence, is a resounding call for fair wages, better working conditions, and a part of the unprecedented profits that these automotive titans have enjoyed in recent years.
President Biden, who is known for his pro-union attitude, wasted no time in voicing his support for the UAW strikers. Speaking from the White House just hours after the strike began, he underlined the importance of automakers recognizing their employees’ essential contributions.
Biden’s speech emphasized the stark contrast between increasing corporate profits and the wages and benefits received by workers who have played a critical part in building the industry. “The bottom line is that auto workers helped create America’s middle class,” Biden said, per USA Today . “They deserve a contract that sustains them and the middle class.”
The UAW’s demand for a 40% salary raise throughout the life of the contract is at the heart of this strike, which has seen almost 13,000 auto workers walk off the job. The union is also advocating for the reinstatement of an inflation-adjusted cost-of-living allowance adjustment, defined benefit pensions for all workers, a shorter work-week, enhanced benefits for retirees, and restrictions on the use of temporary workers.
President Biden noted that automakers have made considerable offers to employees, but feels they should go even further.“Auto companies have seen record profits including the last few years because of the extraordinary skill and sacrifices of the UAW workers,” he said. “Those record profits have not been shared fairly, in my view, with the workers.”
Biden announced the dispatch of two of his top officials to Detroit to arbitrate and promote negotiations: interim Labor Secretary Julie Su and White House senior adviser Gene Sperling. However, not everyone in the UAW strike agrees with Biden, reports CNBC News . UAW President Shawn Fain responded to the president, saying, “We agree with Joe Biden when he says ‘record profits mean record contracts. We don’t agree when he says negotiations have broken down.”
After negotiations broke down, the UAW announced a targeted strike at a few Big 3 auto plants. No one wants a strike, but I respect workers’ right to collective action. Workers deserve to share in the benefits they helped create for an enterprise. pic.twitter.com/zlnvnYVvao
— President Biden (@POTUS) September 15, 2023
The strike, which began with specific plants of the Big Three automakers, poses a huge threat to the American economy. A protracted strike might have an economic impact on ten states, including Michigan. A report by Michigan economists suggests that the impact could extend as far as Texas and New York, underscoring the far-reaching implications of this labor dispute.
This strike also occurs at an important time in American politics. A recent USA TODAY/Suffolk University Sawyer Business School poll found that Americans are still concerned about growing costs, indicating that President Biden may face hurdles in terms of public image of his economic initiatives.
The UAW’s plan to strike against all three major automakers at the same time is a calculated move aimed at keeping the industry on its toes while also using the union’s position to obtain a fairer contract. By taking this route, the UAW hopes to ensure that its members receive a fair part of the profits earned by their efforts.