Biden's tricky foray into auto contract talks
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High-stakes contract talks between the United Auto Workers and Detroit's Big 3 automakers are a tricky test of Democratic coalition politics as the EV transition marches ahead.
Driving the news: President Biden yesterday urged the Ford, GM and Stellantis to avoid plant closures as part of a wider statement on the talks.
- He added that "when transitions are needed, the transitions are fair and look to retool, reboot, and rehire in the same factories and communities at comparable wages."
The intrigue: Biden's statement came the same day climate groups, including big players like the Sierra Club, released an open letter to auto CEOs backing UAW.
- The groups' goals include ensuring workers at battery plants — a growing investment area for automakers — have the same pay and safety standards as car factories.
State of play: As White House policies look to juice EV production, the contract talks come amid surging corporate profits and plant closures, Axios Detroit's Joe Guillen reports.
- Workers want 40% raises. Detroit automakers want more flexibility to compete with Tesla, Toyota and other EV makers that don't pay union wages.
Catch up fast: UAW President Shawn Fain has been very public about concerns the EV transition will leave union workers behind.
- Meanwhile former president Donald Trump is aggressively courting autoworkers' votes by alleging EVs will undercut them.
Quick take: The talks and the UAW's EV concerns are politically dicey.
- Biden's campaign is keen to win labor votes in swing states, while green groups want to avoid hurting deployment of climate-friendly tech.
What's next: The current UAW contract with automakers expires Sept. 14.
