Biden Advocates for 40% Pay Raise for UAW During Michigan Strike Visit, According to Reuters

By Jeff Mason and Nandita Bose

BELLEVILLE, Michigan – President Joe Biden made a groundbreaking appearance on Tuesday, joining striking autoworkers in Michigan to show his support for their demands for a 40% wage increase, stating they deserve "a lot more" than their current compensation.

Biden’s presence marked the first occasion a sitting U.S. president has joined striking workers in modern history. This visit comes just one day ahead of Donald Trump’s scheduled address to auto workers in the same state. The simultaneous events underscore the significance of union backing as both candidates gear up for the 2024 presidential election, even though unions comprise only a small portion of the U.S. workforce.

Biden visited a General Motors parts distribution center in Belleville, where he rallied with striking workers, asserting, "Companies were in trouble, now they’re doing incredibly well. And guess what? You should be doing incredibly well, too." He added that workers "deserve what you’ve earned" and that they have earned "a helluva lot more than what you’re getting paid now."

When asked about the union’s request for a 40% pay increase, which reflects the pay raises of CEOs over recent years, Biden affirmed, "Yes. I think they should be able to bargain for that." However, sources within the auto companies noted that Biden’s backing of the significant wage hike might complicate the negotiation process with the United Auto Workers (UAW), as discussions appeared stalled this week due to the focus on both Biden and Trump.

Elon Musk, CEO of Tesla, voiced his opinion on social media, suggesting that the 40% demand and reduced hours could lead to bankruptcy for the companies. Notably, Tesla’s facilities are not unionized.

Following his remarks, Biden shared light-hearted moments with the crowd, exchanging fist bumps and taking selfies, all while under the watch of Secret Service agents.

Trump is set to speak to hundreds of workers at an auto supplier in a Detroit suburb on Wednesday. That company, Drake Enterprises, is not unionized, according to an AFL-CIO spokesperson.

Republicans have criticized Biden’s push for an electrified vehicle fleet, arguing it might be unpopular among autoworkers. Trump, in a statement, accused Biden of undermining autoworkers, claiming his electric vehicle mandates will hurt the U.S. auto industry and jeopardize many jobs.

UAW President Shawn Fain welcomed Biden and shared concerns about the transition to electric vehicles, giving Biden a UAW baseball cap. While Fain deemed Biden’s visit a "historic moment," he did not officially endorse Biden’s re-election bid. Nevertheless, Biden expressed he was not focusing on such endorsements, and the union has no connection with Trump’s upcoming event, with Fain not planning to attend.

Both candidates are expected to sharpen their campaign messages in Michigan, reflecting the state’s importance in the electoral landscape. A Republican strategist noted the general election feels imminent as both parties gear up for 2024.

The UAW has initiated targeted strikes against GM, Ford, and Stellantis, demanding wage increases to align with CEO pay raises, shorter work weeks, and job security amidst the industry’s shift toward electric vehicles.

The stakes are high for both the Detroit automakers and the UAW, as federal policy decisions carry significant weight. Automakers are relying on government incentives for electric vehicle production while negotiating stricter emission regulations, which they claim are costly and fast-paced. The union fears that the move to electric vehicles could lead to job losses due to the reduced parts needed in production.

Despite only 10.1% of U.S. workers being union members in 2022, unions wield considerable political influence, especially in swing states where they can impact the working-class vote.

The intertwining of the auto industry and labor movement in Michigan and other Midwestern states is crucial to understanding political dynamics. In 2016, Trump garnered unprecedented support from union members, which helped him secure key states like Michigan. In 2020, Biden reclaimed that support with a notable margin, winning Michigan by around 154,000 votes.

Trump plans to attack Biden’s economic policies, particularly surrounding electric vehicle incentives, arguing he would better protect blue-collar workers if re-elected.

Labor experts suggest Trump is aiming to create a divide between union members and their leaders, who criticized his labor policies during his presidency.

Historians have noted that Biden’s actions in Michigan demonstrate a level of support for striking workers not seen in over a century, comparable to Theodore Roosevelt’s invitation to striking coal workers in 1902.