In a historic show of solidarity, President Joe Biden stood alongside United Auto Workers (UAW) members on strike, emphasizing the crucial role of unions in shaping the nation’s foundation. Addressing the crowd at GM’s Van Buren Township parts distribution center in Michigan, Biden asserted, “Wall Street didn’t build this country, the middle class built this country. The unions built the middle class…you deserve what you’ve earned. And you’ve earned a hell of a lot more than you’re getting paid now.”
UAW President Shawn Fain joined Biden at the picket line, expressing gratitude for the President’s support, yet refraining from formal endorsement ahead of the 2024 Presidential election. This visit marks the first instance of a sitting president visiting a picket line in recent history, according to the White House. In parallel, former President Trump signaled his intention to visit the state, planning a rally with 500 union members in Clinton Township, Mich., on Wednesday.
The Big Three automakers, Ford, GM, and Stellantis, released statements in advance of Biden’s visit, refraining from criticism of the President’s involvement in the UAW strikes. Stellantis affirmed, “On the first day of the strike, President Biden said UAW workers ‘deserve a contract that sustains them and the middle class.’ We agree and presented a record offer.” GM emphasized their focus on sincere bargaining for an equitable agreement.
Ford, home to the significant Michigan Assembly Plant, articulated a cooperative approach, stating, “Ford and the UAW are going to be the ones to solve this by finding creative solutions to tough issues together at the bargaining table.” The company underscored their mutual interest in the enduring vitality of the domestic auto industry and manufacturing jobs in the US Midwest.
In a surprising turn of events, Ford announced a temporary pause in the development of their $3.5 billion battery plant in Marshall, Mich. The decision, attributed to competitive concerns, remains shrouded in specifics. Ford clarified that a final determination regarding the planned investment is pending. Notably, Ford had previously indicated sole ownership of the battery plant and pledged to hire all its staff. However, the licensing agreement with China’s CATL, involving CATL’s LFP battery technology for new EVs, may have prompted a reevaluation of potential government battery credits, resulting in the developmental hiatus.
The UAW swiftly responded to Ford’s decision, characterizing it as a punitive measure against the union and its call for higher wages. UAW President Shawn Fain denounced the move, stating, “This is a shameful, barely veiled threat by Ford to cut jobs…We are simply asking for a just transition to electric vehicles and Ford is instead doubling down on their race to the bottom.”
As the visit of President Biden to the UAW picket line makes headlines, and with Ford’s battery plant development on temporary hold, the ongoing strike and negotiations between the UAW and the Big Three continue to shape the future of the American automotive industry.
Source: Yahoo Finance
