President Biden has been actively involved in promoting electric vehicles (EVs) and supporting the United Automobile Workers (U.A.W.) union. However, as the U.A.W. and major automakers including General Motors, Ford Motor, and Stellantis approach a strike deadline, the challenges surrounding the transition to EVs are becoming apparent.
Under the leadership of new president Shawn Fain, the U.A.W. is advocating for better pay and labor standards for workers involved in manufacturing EV components such as batteries. Currently, most battery plants are not unionized. On the other hand, Detroit automakers argue that these workers are often employed in joint ventures with foreign manufacturers, which limits their control over wages.
Former President Donald J. Trump, who is running against President Biden, has criticized the impact of clean energy policies on American jobs and consumer prices. However, the White House asserts that President Biden’s policies prioritize the creation of high-quality jobs and a strong domestic EV industry.
While President Biden has expressed support for union jobs and fair wages, he has not provided specific details on wages in the EV industry. A potential strike could force him to make explicit decisions that balance his commitment to workers with the need to avoid a costly long-term shutdown.
Representative Ro Khanna emphasizes the importance of paying battery workers the same amount as U.A.W. workers at major automakers to create good-paying manufacturing jobs. The shift to EVs has raised concerns about the decline of unionized work in the industry.
The U.A.W. has focused its efforts on addressing the concerns of battery workers employed by G.M., Ford, and Stellantis. These workers are typically paid less than U.A.W. members, sparking calls for a substantial wage increase. The union believes that the companies can afford higher wages, considering their collective profits in North America over the past decade.
The transition to EVs is expensive, and automakers are uncertain how quickly consumers will embrace electric vehicles. Despite labor cost considerations, the Big Three automakers are committed to catching up with Tesla in the EV market. Last year, Tesla sold more EVs than G.M., Ford, and Stellantis combined.
The U.A.W. has shown frustration with setbacks in achieving its goals, such as the removal of a subsidy provision for unionized EV assembly plants. The union expects national leadership to support their efforts in ensuring fair wages for battery workers.
President Biden’s liaison to the U.A.W. and the auto industry, Gene Sperling, plays a critical role in facilitating discussions between both parties. The Energy Department has also provided funding to jump-start the EV industry and create good jobs.
Democratic politicians and environmental groups have supported the U.A.W.’s demands for unionization in the battery industry. They argue that this change would have a limited impact on automakers’ profits, as labor costs constitute a relatively small portion of overall costs.