Joe Biden, who claims to be the most pro-union president in modern US history, is concerned about the effects of prolonged strike on the country’s economy. The US has been trying to emerge a leader in the EV market and preventing China from strengthening its foothold on the industry.
But the United Auto Workers (UAW) strike might evolve into a major challenge for the Biden administration. Workers and the union fear the transition to EVs will come at the cost of jobs as electric vehicles require fewer people at the assembly line. Workers have voiced concerns about being pushed aside by computers, robots and EVs.
Biden maintains his pro-union and pro-worker views, saying no one wants a strike and workers deserve a fair share of the benefits they help create for an enterprise. He highlighted that companies have made significant offers, but needs to do more. “Companies have made some significant offers, but I believe it should go further to ensure record corporate profits mean record contracts.”
The UAW has called its latest strike “Stand Up Strike“, a strategic new approach. Union members say more locals may join them in Stand Up and join the strike. This will empower the UAW with maximum leverage and flexibility in their fight to win a fair contract with the Big Three automakers.
Patrick Anderson, CEO of Anderson Economic Group, says it definitely reflects UAW’s strategy to ensure that a large number of suppliers and dealers are hit, reduce the number of workers on strike and receive strike pay.
General Motors expressed disappointment with UAW going ahead with the strike. The company had gone all the way with an unprecedented economic package and historic wage increases and manufacturing commitments, but the “compelling offer” was rejected. However, it will continue bargaining in good faith to reach an agreement with the union.
The US government is keenly monitoring this strike of around 13,000 members. Word is that President Biden was of the view that the strike wouldn’t happen, but now it has. Acknowledging the concerns and fears of the auto workers, he said the transition to clean energy should be fair and a win-win for auto workers and auto companies.
Biden administration’s top aides are helping with the negotiations to help the union and companies reach a win-win deal. The government wants to resolve the strike swiftly before it takes the first blow at the vulnerable economy, which is already battling inflation.
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