U.S. President Joe Biden expressed confidence on Monday that a strike by workers at the nation’s three major automakers is unlikely, despite an impending contract deadline later this month.
“I’m not worried about a strike,” the Democratic president remarked on Monday as he arrived in Philadelphia to deliver a speech in celebration of the U.S. Labor Day holiday. “I don’t think it’s going to happen.”
Late last month, the United Auto Workers (UAW) union announced that its members had overwhelmingly voted in favor of authorizing a strike at the Detroit Three automakers if an agreement is not reached before the current four-year contract expires on September 14.
While a strike remains uncertain, the significant wage and benefit increases demanded by UAW President Shawn Fain, along with the intensity of the union’s campaign, have left some Detroit industry executives and analysts prepared for potential walkouts in September.
In a broader context, the National Labor Relations Board recently announced its intention to investigate UAW claims that General Motors and Stellantis, the parent company of Chrysler, were not negotiating in good faith—a claim both automakers deny. Additionally, Ford Motor revealed it had offered a 9% wage increase through 2027, a figure considerably lower than the 46% wage hike sought by the union.
It’s worth noting that the UAW previously engaged in a 42-day strike against General Motors in 2019 before ultimately reaching a new contract.
