President Joe Biden showed his solidarity with the United Auto Workers (UAW) on Friday as they embarked on a strike against the Big Three automakers. Speaking at the White House, Biden acknowledged the remarkable skills and sacrifices of UAW workers, stating that the automotive companies' record profits have not been equitably shared with them.
In his brief address, President Biden emphasized that the substantial earnings of these companies should result in "record contracts" for the UAW. Approximately 12,700 workers commenced their strike early Friday when negotiations between their union and the Big Three automakers failed to yield an agreement before the contract expiration.
The strike targets a Ford Motor plant in Michigan, a General Motors plant in Missouri, and a Stellantis NV plant in Ohio. Notably, the UAW has yet to endorse President Biden's re-election bid, in contrast to other prominent labor unions such as the AFL-CIO. This discrepancy raises the possibility of a 2024 presidential rematch between Biden and former President Donald Trump, who managed to garner support from union households that traditionally leaned towards Democratic candidates like Biden.
During the 2020 election, Biden received more support from union households in Michigan and Wisconsin, while Trump enjoyed greater backing in Ohio and Pennsylvania among similar demographics. Trump has capitalized on concerns about the automotive industry's shift towards electric vehicles, which the Biden administration has actively advocated for. On his Truth Social platform, the former president expressed his belief that electric cars spell disaster for both the United Auto Workers and American consumers.
In related news, some experts speculate whether Tesla will emerge as the victor amidst the ongoing labor disputes within the Big Three. Additionally, there are concerns about potential price increases resulting from the UAW strike. Nevertheless, Fitch Ratings predicts that the impact of the strike on the Big Three will be relatively limited.
With President Biden's endorsement of the UAW strike, it remains to be seen how this labor dispute will unfold and what implications it may have for the automotive industry as a whole.
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