President Biden’s Show of Support Amplifies UAW Strikes, Shaking Up the Auto Industry

U.S. President Joe Biden has announced his forthcoming visit to Michigan, a move that is set to provide a significant boost to the ongoing United Auto Workers (UAW) strikes against major players in the automotive industry, including Ford, General Motors (GM), and Stellantis.

Biden’s commitment to stand with the striking workers in Michigan was unveiled in a recent statement posted on X, sending ripples of anticipation through the ranks of UAW members and supporters. This development follows another wave of strikes initiated by the UAW, targeting key manufacturing plants operated by GM and Stellantis. Ford, however, has been spared from the recent strikes, thanks to promising progress in negotiations, according to reports from The New York Times and AP News.

The expanded strike actions have seen workers across the nation walking off the job at 20 Stellantis auto parts distribution centers and 18 GM facilities, representing plants spanning 20 states. Ford’s ability to dodge an escalation of strikes can be attributed to its willingness to address some of the UAW’s demands. The UAW, highlighting Ford’s responsiveness, emphasized this point in a statement made by union President Shawn Fawn, while also issuing pointed comments directed at GM and Stellantis.

“At Ford, we’ve achieved genuine progress,” Fawn stated. “Though we still face significant issues that require resolution, we do want to acknowledge Ford’s sincere commitment to reaching an agreement. In the case of GM and Stellantis, the situation appears less promising.”

While the UAW has yet to finalize agreements with Ford, experts believe that sealing a deal with the company could exert substantial pressure on both GM and Stellantis. Michael Duff, a former National Labor Relations Board attorney and current Professor at Saint Louis University School of Law, opined on the matter, asserting that the UAW could leverage a favorable deal with Ford against the other two automakers.

“Securing a deal with Ford that aligns with many, if not all, of the UAW’s demands would undeniably place considerable pressure on GM and Stellantis,” Duff asserted. “It compels them to justify why they differ and why they cannot offer more.”

The UAW represents approximately 150,000 auto workers across the three automotive giants, with over 18,000 of them currently participating in the strike actions. The union’s demands include a 40-percent wage increase over the next four years to combat inflation and align with recent CEO salary hikes. Additionally, they seek an end to tiered wages, shorter workweeks, improved pension plans, and more.

As of last week, the three automakers have presented new contract offers featuring approximately 20-percent wage hikes over the next four years. Ford’s CEO, Jim Farley, expressed concerns that implementing the UAW’s current demands could financially cripple the automaker.

“These are unprecedented gains,” stated the UAW in a message to its members. “However, our journey is far from over.”

To date, the strikes have resulted in a cumulative production loss of around 16,000 vehicles, as reported by AP News. Some industry observers speculate that this disruption could inadvertently favor Tesla amidst the automotive sector’s ongoing shift towards electric vehicles (EVs). Earlier this week, Fawn took a swipe at the non-unionized EV manufacturer, asserting that their compensation packages fall short of workers’ expectations.

“The majority of employees in these companies struggle to make ends meet, while CEOs and individuals like Elon Musk continue to amass wealth, even venturing into outer space,” Fawn remarked. “This situation is simply unacceptable.”