Record profits should ensure record contracts

U.S. President Joe Biden speaks on contract negotiations between the United Auto Workers and auto companies in the Roosevelt Room of the White House in Washington, DC, September 15, 2023.

Kevin Dickey | Getty Images

WASHINGTON — Speaking at the White House on Friday about the UAW strike, President Joe Biden stressed that workers should be fairly compensated as auto companies hit record profits.

“These companies have made some significant offers,” Biden said. “But I believe they should go further and ensure that record corporate profits mean record contracts for the UAW.”

Biden said he would send acting Labor Secretary Julie Sue and White House senior adviser Gene Sperling to Detroit to help mediate the negotiations. Biden said the two have been involved in negotiations so far.

“Because of the extraordinary skills and sacrifices of UAW workers, auto companies have made record profits over the past several years,” Biden said. “In my opinion, those record profits have not been shared equitably with workers. .”

Nearly 13,000 autoworkers went on strike Thursday night as the UAW failed to reach contract agreements with General Motors, Ford Motor and Stellantis.

Workers at GM’s midsize truck and full-size van plant in Wentzville, Mo., are on strike; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Mich.; and Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio. . For Ford, UAW President Sean Fein said only paint and assembly workers would go on strike.

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The Biden administration has played a role in resolving several recent union disputes, including longshoremen contract negotiations earlier this month and averting last year’s rail workers strike. However, unlike the railroad workers’ strike, Biden has no legal authority to intervene and instead urged both sides to stay at the negotiating table.

The strike still leaves Biden in a difficult position. He calls himself “the most pro-union president in American history,” but the UAW need This is partly a response to his electric vehicle policy, which unions say will cost jobs. The 2027-2032 standards proposed by the Environmental Protection Agency require that by the end of the period, 67% of new cars will be electric, which can reduce emissions by 56% to some extent.

The UAW, which represents about 146,000 workers at Ford, General Motors and Stellantis, has historically supported Democrats and supported Biden in 2020, but they are the only major union that has not yet endorsed the president’s re-election.

The UAW is asking for a 40 percent increase in hourly wages, a reduction in the 32-hour work week, the restoration of traditional pensions, the elimination of pay grades and the restoration of cost-of-living adjustments, and increases in legacy benefits such as retiree, vacation and family benefits.

The companies made record proposals to meet some of the UAW’s ambitious demands, but it wasn’t enough to sway the union. The automaker proposed about 20% wage increases, cost-of-living adjustments, changes to profit-sharing bonuses and more vacation and family leave.

This is breaking news. Please check back for updates.

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