The United Automobile Workers’ big wins with Detroit’s Big Three automakers could also prove to be a significant political victory for President Biden, who openly sided with striking workers to pressure the companies, General Motors, Ford and Stellantis, to produce generous concessions.
But the U.A.W.’s turn now toward nonunionized automakers like Tesla, Hyundai, BMW and Mercedes will test whether Mr. Biden’s support, as well as measures that he signed into law, will produce the expansion of organized labor that he has long promised.
For unionized autoworkers, many of them in the swing state of Michigan, the tentative contracts, which are awaiting rank-and-file ratification, would bring substantial wage gains, “another piece of good economic news,” Mr. Biden said on Monday. The tentative contracts would lift the top U.A.W. wage to more than $40 per hour over four and a half years, from $32 an hour. Stellantis, maker of Chryslers, Jeeps and Ram trucks, agreed to reopen its assembly plant in Belvidere, Ill., near the border of Wisconsin, another crucial swing state.
“The impact of Biden’s public support can’t be overstated,” said Steve Smith, a spokesman for the umbrella A.F.L.-C.I.O., which includes the autoworkers’ union. “There’s a lot of upside here for Biden. The contracts set a new standard for the industry that clearly show the benefit of collective bargaining.”
Beyond that, G.M. agreed to bring its electric vehicle battery joint venture, Ultium, under the national contract, a boon for Ultium workers but also a pressure point for unions as they seek to organize battery plants sprouting up around the country. Such plants are using generous subsidies from Mr. Biden’s signature legislative achievements — especially the climate change provisions of the Inflation Reduction Act — as the administration pushes to speed the country’s transition to electric vehicles.
“This historic contract is a testament to the power of unions and collective bargaining to build strong middle-class jobs while helping our most iconic American companies thrive,” Mr. Biden said Monday evening.
Jason Walsh, the executive director of the BlueGreen Alliance, which has brought together labor and environmental groups to marshal support for the clean energy transition, said the contracts, if ratified by U.A.W. workers, would be a watershed moment for the economy — and possibly the planet.
“The legislative intent behind the industrial policy in the Inflation Reduction Act was an implicit deal: We as a nation are going to invest in the sectors of the economy that are important to the country and the planet in the long run, but in return we want the companies that receive those benefits to maximize returns to workers, communities and the environment,” Mr. Walsh said. To that end, the contract settlement is “huge,” he added. “It highlights the lie peddled by Donald Trump and at times the Big Three that the E.V. transition means lower-quality jobs in a nonunion work force.”
The U.A.W. actions took on strikingly political meaning. In May, the autoworkers’ union opted to withhold an endorsement of Mr. Biden’s re-election, openly expressing “our concerns with the electric vehicle transition” that the president was pushing through legislation and regulation.
Last month, Mr. Biden became the first sitting U.S. president to join a picket line. Senator Tim Scott of South Carolina, a candidate for the Republican presidential nomination, castigated striking workers, saying “they want more money working fewer hours. They want more benefits working fewer days.”
Mr. Trump, the front-runner for the Republican presidential nomination, visited a nonunion parts plant in Michigan to rail against electric vehicles and to demand that Shawn Fain, the new and aggressive U.A.W. president, endorse him for another term in the White House.
Mr. Fain said he would never do that, and supporters of the president pointed to provisions in federal laws championed by Mr. Biden that may have helped secure the deals. Subsidies for electric vehicle production will go only to domestic manufacturing plants, meaning Detroit management could not credibly threaten to move new auto plants overseas in search of cheaper labor.
But union officials did not say on Monday what their intentions were for a presidential endorsement. Mr. Fain did make clear over the weekend that he was not resting on his laurels with the gains achieved with its escalating wave of strikes against the Big Three. The union plans to target Tesla, the nonunion automaker that dominates the domestic electric vehicle market, as well as foreign automakers with factories in the Southeast, where unions have struggled to gain a foothold. Some of the biggest new plants are under construction in Georgia, a critical swing state for 2024, including a Hyundai electric vehicle plant that will be the state’s biggest economic development project ever.
Organizers will be able to lean on provisions of the three big laws that Mr. Biden signed — a $1 trillion infrastructure bill, a $280 billion measure to rekindle a domestic semiconductor industry and the Inflation Reduction Act, which included $370 billion for clean energy to combat climate change — to push their case.
Tucked into all of those laws were measures to give unions the power to effectively tell employers that accept rich federal tax incentives this: You must pay union-scale wages and use union apprenticeship and training programs, so you might as well hire union workers.
How electric vehicle and battery makers respond to the U.A.W.’s next push will go a long way toward determining whether Mr. Biden can make good on his promise that his effort to curtail climate change and wean the nation off fossil fuels will indeed produce “good union jobs.”
