Biden pressures automakers as he wades more deeply into UAW strike

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President Biden is dispatching two top aides to get more directly involved in negotiations between the United Auto Workers (UAW) and the Big Three automakers, wading more deeply into the politically complicated strike that began Friday morning.

In brief remarks Friday Biden also said that he understands the workers' grievances, especially in the face of what he called record profits by the companies involved: Ford (F), GM (GM), and Stellantis (STLA).

"Those record profits have not been shared fairly, in my view, with those workers," the president said, adding that the negotiations should end in "record contracts for the UAW."

On Friday morning, as the deadline for a deal passed, the UAW began a new "stand up" strike strategy that saw selected plants go on strike with others still working but remaining on call to walk off the job at any time.

WASHINGTON, DC - SEPTEMBER 15: U.S. President Joe Biden delivers remarks on the contract negotiations between the United Auto Workers and auto companies in the Roosevelt Room at the White House on  September 15, 2023 in Washington, DC. The United Auto Workers authorized a strike for the first time since 2019 amid negotiations with Ford, General Motors and Stellantis. (Photo by Kevin Dietsch/Getty Images)
President Joe Biden delivered remarks on the contract negotiations between the United Auto Workers and auto companies in the Roosevelt Room at the White House on Sept. 15. (Kevin Dietsch/Getty Images) (Kevin Dietsch via Getty Images)

The two aides dispatched by Biden — acting Labor Secretary Julie Su and White House Senior Adviser Gene Sperling — have largely been involved from afar up until now. Now both will be headed to Detroit to try and mediate directly in the days ahead as both sides try to avert a protracted strike.

These Biden officials have histories with auto negotiations, notably Sperling who helped lead the rescue of the auto industry in 2009 during the Obama administration.

Biden's speech in the Roosevelt Room of the White House reflected the complicated political calculations for Biden that have been evident since the talks began.

Biden himself has been pulled between his longtime allegiance to union workers and his championing of the nascent electric vehicle industry, which has disrupted the traditional auto industry and helped contribute to the current standoff.

Biden alluded to the challenge, arguing Friday that the US need for strong unions "is especially true as we transition to a clean energy future, which we are in the process of doing."

"We need labor agreements for the future," he added.

WENTZVILLE, MISSOURI - SEPTEMBER 15: GM workers with the UAW Local 2250 Union strike outside the General Motors Wentzville Assembly Plant on September 15, 2023 in Wentzville, Missouri. In the first time in its history the United Auto Workers union is on strike against all three of America’s unionized automakers, General Motors, Ford and Stellantis, at the same time. (Photo by Michael B. Thomas/Getty Images)
GM workers with the UAW Local 2250 Union strike outside the General Motors Wentzville Assembly Plant on Sept. 15 in Wentzville, Mo. (Michael B. Thomas/Getty Images) (Michael B. Thomas via Getty Images)

Biden has also had close ties with auto CEOs themselves since taking office, with Ford CEO Jim Farley and General Motors CEO Mary Barra often visiting the White House.

"He's in a very difficult position," noted Kate Bronfenbrenner, a director of labor education research at Cornell University, during a Yahoo Finance Live appearance Friday. She noted Biden "wants to be careful about putting his weight into the strike because it could go either way."

The move by the White House to get more closely involved was a marked change after weeks where the administration tried to keep its distance publicly from the talks. On Thursday, Biden gave what was billed as a major address on his economic policy, but the looming strike didn't come up during that 34-minute speech.

Now with the strike underway, Biden and the White House are trying to tread a line and end the standoff as quickly as possible before the economic costs begin to mount.

"Let's be clear, no one wants a strike but I respect the workers' right to use options under the collective bargaining system," says Biden.

Ben Werschkul is Washington correspondent for Yahoo Finance.

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