Biden urges auto union and Big Three automakers to settle, prevent strike.

President Joe Biden is urging⁤ the ​top three U.S. automakers and the United Auto Workers union to ‍come to an agreement and avoid a strike.

The ⁤negotiations between‌ the Detroit-based‌ carmakers⁣ Ford, General Motors, and Stellantis and the auto workers union are still ongoing, with ‍the critical labor‍ contract deadline just‍ a month ​away.

The⁣ UAW is demanding ⁣significant ​pay raises of 40 percent or more, along with increases in CEO salaries and a reversal of⁢ past ⁤concessions ​made by the union.

The White House is ‌closely monitoring the negotiations ⁣as both sides ‍are​ far from reaching‌ a deal.

Strike ‌Looming This Month

A potential strike by the auto union could ⁣have significant economic⁢ and political consequences for the United States.

In ⁤July, President Biden and ​UAW President Shawn Fain met briefly in the West Wing, where⁣ union leadership presented their demands ⁢to senior⁢ White House staff.

The contracts between UAW and⁣ General ‍Motors, Ford, and Stellantis, which include brands like Dodge, Ram, and Chrysler, are set to expire on Sept. 14.

Mr. Fain rejected the most⁤ recent offer from Stellantis and publicly discarded a copy of ‌the offer.

The union has authorized plans for a strike vote on Aug. 14 at all three companies, and the announcement⁢ is‌ expected soon.

Historically, UAW would strike ⁣at one company while putting the other two ⁢on ⁢hold, focusing on reaching a deal​ with the first company before moving on to the others.

The​ union typically ‍follows this pattern of striking at the remaining two automakers.

Green Agenda

The labor negotiations are ⁢a ‍sensitive⁤ topic for President Biden⁢ and Democrats as they navigate ​their‌ green agenda of transitioning to electric vehicles while supporting ‌union workers.

“As‌ the Big⁢ Three ‍auto⁤ companies and the United Auto Workers come together—one month‌ before the expiration of their contract—to negotiate a ‍new agreement, I want ‌to be clear about where I stand. I’m asking all sides to​ work together to forge⁣ a fair agreement,” said President Biden in an Aug.​ 14 statement.

Although the AFL-CIO‍ has⁣ already endorsed President Biden’s ⁤reelection bid, UAW has yet to make a presidential endorsement.

The president reiterated his⁤ support for electric vehicles while ​urging the companies to ⁣address⁢ the union’s concerns about the transition to​ battery-powered vehicles.

In his speech, he emphasized ⁢the union’s ​”fair⁢ transition” to⁢ clean energy, highlighting the potential for more middle-class jobs.

UAW⁣ is ⁣concerned about the ​automakers’‌ plan to completely switch to EVs ⁣by mid-century and has expressed worries about economic issues, such as federally subsidized work going to non-union battery ‌plants.

President⁤ Calls for Compromise

President Biden also praised key union priorities, including the right for workers to‍ organize, providing family-supporting jobs, and ensuring fair industry transitions that prioritize retooling, rebooting, and rehiring in the same‍ factories and communities at comparable​ wages.

However, the lower wages ⁢at battery production facilities compared to⁢ other manufacturing ‌teams remain ⁣a point of‍ contention for‍ UAW.

Additionally, assembling a battery-operated EV takes about two-thirds less time‍ than⁤ a vehicle​ with an internal combustion engine and transmission, as​ it ⁤has ⁣fewer moving ​parts.

UAW’s demands,‍ released in early August, include protections in case of plant closures and significant pay raises.

The union also insists that workers at joint-owned⁢ battery plants ⁣receive⁢ comparable‌ wages and ⁣safety standards as other union⁤ workers.

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