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The president also suggested a word of caution for the UAW as it puts big wage-increase demands on the table, saying that the U.S. auto industry needs to “successfully compete domestically and globally.”
Biden framed his statement as particularly vital amid a broad industry retooling for the electric vehicle future.
“The middle class built America, and unions built the middle class,” he said. “The need to transition to a clean energy economy should provide a win‑win opportunity for auto companies and unionized workers.”
Biden’s intervention comes as the UAW’s new leadership leads an aggressive campaign for better wages and benefits, with one month to go before its existing contract expires Sept. 14. The union has all but said it will strike if talks don’t progress by then.
The automotive sector is vital to U.S. manufacturing, making up about 3 percent of gross domestic product. The UAW’s 150,000 automotive members produce nearly half of the light vehicles manufactured in the United States, according to GlobalData.
With positive indicators helping buoy economists’ and consumers’ attitudes about the economy, the administration is keen to avoid a strike that could cripple such a vital part of the manufacturing sector.
“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,” Biden said.
The UAW’s newly elected president, Shawn Fain, has amped up the union’s demands after what he calls too many years of complacency and concessions by union leadership. Automakers have suggested they can’t remain competitive against Tesla and other non-unionized workplaces if they grant what the union is demanding.
General Motors, Ford and the UAW didn’t immediately provide comment on Biden’s statement. Stellantis, the parent company of Chrysler, Jeep and other brands, said it is aiming for a deal that “balances the concerns of our 43,000 employees with our vision for the future — one that better positions the business to meet the challenges of the U.S. marketplace and secures the future for all of our employees, their families and our company.”
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