U.S. President Joe Biden on the 15th (local time) pressured automakers, stating that corporate profits should be shared with workers in relation to the simultaneous strike by the United Auto Workers (UAW).
In an emergency speech that day, President Biden said, "We respect workers' rights to collective bargaining."
President Biden pointed out that "auto workers have made many sacrifices for the automotive industry over generations, including during the COVID-19 pandemic," highlighting the record profits automakers are making. He emphasized, "Record corporate profits should lead to record labor contracts," and "Record earnings must be shared through record wage agreements."
He also said the White House would mediate to facilitate smooth negotiations. President Biden stated, "I hope both sides return to the negotiating table and reach a 'win-win' agreement," and dispatched Acting Labor Secretary Julie Su and White House advisor Gene Sperling to assist with the negotiations.
The UAW is a union that includes workers from the Big Three automakers such as Ford. As collective bargaining deadlines with Ford, Stellantis, and General Motors (GM) passed, the UAW initiated strikes at three plants located in Michigan, Ohio, and Missouri. If there is no progress in negotiations, the strike is planned to gradually expand. The UAW is demanding at least a 40% wage increase over the next four years. However, companies are resisting, citing increased costs and decreased competitiveness, stating they can only raise wages by up to 20%.
President Biden is facing a decline in approval ratings due to economic issues such as inflation ahead of next year's presidential election. Analysts suggest that if this strike prolongs, the situation could become even more difficult. While the White House successfully intervened and mediated both sides during last year's railroad strike, it currently lacks the legal grounds to intervene in this case.
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