Biden calls on UAW, Detroit automakers to reach ‘fair agreement’

President Biden on Monday called on both sides to strike a fair agreement amid the contract negotiations between the United Auto Workers (UAW) and the top U.S. automakers, known as the Big Three.

“As the Big Three auto companies and the United Auto Workers come together — one month before the expiration of their contract — to negotiate a new agreement, I want to be clear about where I stand. I’m asking all sides to work together to forge a fair agreement,” Biden said in a statement.

The union’s worker contracts expire in September, and the UAW has warned Ford, General Motors and Stellantis, formerly Chrysler, that it is prepared to strike over negotiations about cost-of-living pay raises, pensions and other issues.

Biden added that he supports a fair transition to a clean energy future, doubling down on the issue while the UAW is currently withholding its endorsement of his reelection bid due to concerns over the White House’s focus on electric vehicles (EVs).

The president argued the transition “means ensuring that Big Three auto jobs are good jobs that can support a family; that auto companies should honor the right to organize; take every possible step to avoid painful plant closings; and ensure 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, while giving existing workers the first shot to fill those jobs.”

“The need to transition to a clean energy economy should provide a win‑win opportunity for auto companies and unionized workers,” he added.

He also said that UAW helped create the middle class in the U.S. and “deserves a contract that sustains the middle class.”

When asked about the level of concern in the White House over a worker stoppage if negotiations fail, press secretary Karine Jean-Pierre said Biden believes in collective bargaining and pointed to the recent successful negotiations between the Teamsters and UPS.

“We’re just going to have to be hopeful and be positive that they will come to an agreement,” she added.

Biden met with UAW President Shawn Fain to discuss contract negotiations in July after union leadership had asked for an opportunity to brief White House senior staff on their analysis and positions related to the negotiations with the automakers.

When UAW announced in May that it would withhold its endorsement, Fain said that the union wants to see a “just transition” to EVs “where the workers who make the auto industry run aren’t left behind.” He noted that taxpayer money is being used to build up the electric vehicle industry.

The union has historically backed Democrats and endorsed Biden in 2020. Fain has made clear that it is not going to support former President Trump.

Updated at 2:51 pm.