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Tag: autoworkers

  • ‘Pony up’: In strategic shift, UAW says added strikes could come “at any time” | CNN Business

    ‘Pony up’: In strategic shift, UAW says added strikes could come “at any time” | CNN Business

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    CNN
     — 

    UAW President Shawn Fain said the union would not expand its strike against the Big Three automakers on Friday, but that the UAW stood ready to add more workers to the picket lines at any time as its labor action enters a new phase.

    “We are prepared at any time to call on more locals to stand up and walk out,” Fain said in a livestream update on negotiations. He later added: “We changed the rules. Now there is only one rule – pony up.”

    The announcement marks a tactical shift, Fain said. Previously the UAW had announced strike expansions on Fain’s weekly Friday updates. But now, as part of the union’s strategy to keep the automakers off balance, Fain said strike expansions could come at any day of the week, at any time.

    This past Wednesday for the first time it announced an expansion midweek, and without warning, when 8,700 UAW members went on strike suddenly at Ford’s largest factory, the Kentucky Truck Plant in Louisville.

    “We’re entering a new phase of this strike, and it demands a new approach,” Fain said. “We’re done waiting until Fridays to escalate our strike.”

    Fain said that the companies had started to wait until Fridays to make progress in their bargaining positions, and that the union is changing it strategy in order to speed up progress in negotiations.

    “A negotiation requires both sides making movement. If they’re not ready to move, we’re going to give them a push in a language they understand – dollars and cents,” he said.

    This is the first time that the union has gone on strike against GM, Ford and Stellantis at the same time. But rather than shut down any of the companies’ US operations completely, the union has targeted its strike against specific facilities, and then expanded the strike gradually in order to increase pressure at the bargaining table.

    The Kentucky Truck Plant is a key money maker for Ford, assembling heavy duty pickup trucks and full-size SUVs and producing $25 billion in annual sales, or about one-sixth of its revenue. It also produced an estimated $150 million in profits a week, according to an estimate from Colin Langan, auto analyst at Wells Fargo.

    Ford officials told reporters Thursday that the company has gone as far as it can on the additional money it can offer members.

    “We have reached our limit. We’ve actually stretched ourselves to get to this point,” said Kumar Galhotra, president of Ford Blue, which is the unit that sells most of Ford’s gasoline-powered cars to consumers. “We are still working to get this done. We’re open to moving some money around within the deal that might fit the union’s needs better, but in terms of cost of deal, we’re there. We have been very clear, we’re at the limit. Going further will hurt our ability to invest in the business as we need to invest.”

    Fain mocked that statement from Ford, saying that while Ford has recovered well since the Great Recession, its workers have seen only modest pay increases, which were outweighed by rising prices.

    “I found a pathetic irony in that statement,” he said on Friday. “You know who stretched themselves? The Ford workers who didn’t get a single raise for a decade.”

    Fain said the union is in a strong bargaining position and has already achieved a lot in negotiations, but not enough to make up for past concessions by workers.

    “We’re at the point in this process where we’re looking for one thing only – a deal,” Fain said. “We’re not giving these companies an extra hour, or an extra day. They know what needs to happen, and they know how to get it done. Taking out Kentucky Truck sent a very clear message not only to Ford, but to GM and Stellantis as well. Don’t you dare slow walk us or low ball us. We will take out whatever plants you force us to.”

    The companies are on record as offering members an immediate 10% raise to union members and additional raises totaling 10 percentage points or more during the life of the contracts, which are likely to run through the spring of 2028.

    The companies are also agreeing to some kind of return of the cost-of-living adjustment (COLA) to union pay scales to protect workers from rising prices. The union gave up the COLA in 2007, as well as traditional pension plans and health care coverage for retirees for workers hired after the concession contracts reached that year.

    In addition, a week ago, Fain announced that GM had agreed to a major union demand to place workers at new and planned EV battery plants under the national master agreement at the company.

    GM, Ford and Stellatis have all announced plans to shift from traditional gasoline-powered vehicles to electric vehicles, or EVs. That would end the need for the jobs in their current plants that build engines and transmissions.

    All three are in the process of building at least three plants each, almost all in joint ventures with Asian battery makers, that will be used to power EVs. All are expected to pay significantly less than UAW members at those engine and transmission plants are now paid.

    Going into negotiations, the companies had insisted the battery plant workers would be employees of the joint ventures, not the companies themselves, and that their pay scale would not be included in this contract.

    Details of what GM has agreed upon in relation to workers battery plant workers is not yet known, as GM has not confirmed the tentative agreement on the issue. Ford officials have said they also have been negotiating with the union on the battery plant issue and that progress had been made, without giving details.

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  • GM settles strike at Canadian plants | CNN Business

    GM settles strike at Canadian plants | CNN Business

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    New York
    CNN
     — 

    A strike at General Motors’ Canadian plants is over less than a day after it started, according Unifor, the union that represents more than 4,000 autoworkers at the company.

    The strike had begun 11:59 pm Monday when Unifor said GM had refused to agree to a deal similar to the one the union previously reached with Ford. That kind of deal is known as a pattern agreement.

    The union said the company quickly gave in to union demands once the strike started.

    “When faced with the shutdown of these key facilities General Motors had no choice but to get serious at the table and agree to the pattern,” said Unifor National President Lana Payne. “The solidarity of our members has led to a comprehensive tentative agreement that follows the pattern set at Ford to the letter.”

    The union said strike actions are on hold to allow the membership to vote on the tentative agreement. The strike could resume if the rank-and-file members fail to ratify the deal.

    But it’s uncertain whether it will win approval of membership. Only 54% of Unifor members at Ford voted in favor of the deal.

    The Unifor strike occurred while GM as well as rivals Ford and Stellantis were already dealing with strikes by the United Auto Workers union. That strike had started September 15 against targeted facilities of each company. More than 25,000 UAW members are now on strike at the three companies, with nearly 10,000 of those at GM.

    “This record agreement, subject to member ratification, recognizes the many contributions of our represented team members with significant increases in wages, benefits and job security while building on GM’s historic investments in Canadian manufacturing,” said GM’s statement.

    Details of the Unifor deal were not immediately available. But the deal with Ford included a wage increase of 10% in the first year of the agreement, followed by a 2% and 3% increase over the next two years of the contract. It also restored the cost-of-living adjustments (COLA) to protect workers from rising prices.

    The Ford agreement also returned to a pension plan — rather than just 401(k)-style retirement accounts — for Unifor members hired at Ford in recent years. And it converted temporary staff who work full-time shifts into permanent employees.

    Autoworkers in both Canada and the United States used to all have COLA clauses in their contracts as well as traditional pension plans that pay retirees a set amount every month as long as they live. But the automakers got unions on both sides of the border to give up the COLA for all members and traditional pensions for new hires when the companies were in financial distress in 2007 through 2009.

    Restoring those concessions have been a major negotiation demand of both Unifor and the UAW.

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  • Contract negotiations: UAW strike puts the four-day workweek back in focus | CNN Business

    Contract negotiations: UAW strike puts the four-day workweek back in focus | CNN Business

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    CNN
     — 

    When the United Auto Workers called a strike last week against General Motors, Ford and Stellantis, one of their demands focused on an idea circulating on the periphery of labor reform circles.

    In addition to calling for a 36% pay raise and increased job security, union members want a 32-hour, four-day workweek with no pay cuts.

    Proposals to shorten the workweek have gained traction in recent years, with the flexibility of pandemic-era remote work fueling many of these calls. The accelerating use of artificial intelligence in the workplace has also pushed some workers to question the necessity of a 40-hour week.

    Sen. Bernie Sanders has long been a vocal proponent of a shortened workweek.

    “We are looking at an explosion in this country of artificial intelligence and robotics. And that means that the average worker is going to be much more productive,” the Vermont Independent told CNN’s Jake Tapper on Sunday. “The question as a nation that we have to ask ourselves is: Who is going to benefit from this productivity? We should begin a serious discussion — and the UAW is doing that — about substantially lowering the workweek.”

    Several countries have conducted trials of four-day workweeks, with the largest held in the United Kingdom last year. The trial lasted six months and encompassed about 2,900 workers across 61 companies. Participants reported better sleep, more time spent with their children and lower levels of burnout.

    “It would be an extraordinary thing to see people have more time to spend with their kids, with their families, to be able to do more cultural activities, get a better education,” said Sanders. “People in America are stressed out for a dozen different reasons, and that’s one of the reasons why life expectancy in our country is actually in decline.”

    A separate study conducted in Iceland between 2015 and 2019 found reducing the number of work days a week did not lower productivity. A similar program in the United States and Canada, composed of dozens of businesses, found none of the companies planned to return to the five-day standard after the trial ended.

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  • Autoworkers strike deadline nears as negotiators rush to avoid historic walkout | CNN Business

    Autoworkers strike deadline nears as negotiators rush to avoid historic walkout | CNN Business

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    Detroit
    CNN
     — 

    With just hours to go before labor contracts expire at America’s three unionized automakers, thousands of autoworkers could walk off the job.

    Those limited, targeted strikes could be enough to grind production to a halt at General Motors, Ford and Stellantis, which builds vehicles under the Jeep, Ram, Dodge and Chrysler brands for North America.

    But the uncertainty and confusion underscore the high stakes, with a possible historic strike at all three major automakers, disruptions to the local and national economies, and, perhaps more than anything, a hint at the future of manufacturing jobs in America.

    The union and the automakers continued to negotiate down to the wire on Thursday. GM made a new offer on Thursday afternoon, including a 20% raise, matching Ford’s offer.

    “We don’t want there to be a strike. We’re ready to work until the deadline,” Ford CEO Jim Farley told CNN. “We’d like to make history by making a historic deal, not having a historic strike,” he said.

    And President Joe Biden himself spoke to leaders of the union and the automakers, as a strike could be politically costly for him, as well.

    UAW President Shawn Fain on Wednesday evening announced plans for those targeted strikes at any company that fails to reach a labor deal with the union before contracts expire at 11:59 pm Thursday. Fain suggested the strategy, including the possibility of ramping up strikes as negotiating continues, would give the UAW more leverage. “We have the power to keep escalating and keep taking plants out,” he said.

    But Farley said on CNN Thursday that striking plants that make critical parts could affect workers at downstream assembly plants.

    “We can’t make a vehicle without an engine or transmission or stamping. So those people will, you know, basically be furloughed,” Farley said.

    Slowing or stopping the production of a few engine or transmission plants at each company could be as effective at stopping operations as a full strike at all plants, according to industry experts.

    One engine or transmission location per company might be enough to shut down nearly three-quarters of the US assembly plants, said Jeff Schuster, global head of automotive for GlobalData, an industry consultant.

    “Two plants per company, you can pretty much idle North America,” he said.

    Halting the companies’ assembly lines would likely happen in less than a week that way, Schuster said.

    One advantage for the union of a targeted strike is the potential to save resources and extend a possible walkout. Striking union members are eligible for $500 a week from the union’s strike fund.

    If all 145,000 UAW members among the three automakers were to strike at the same time, it could cost the fund more than $70 million a week, draining the $825 million fund.

    If the companies shut down operations and lay off members who are not technically on strike, those workers could be eligible to receive state unemployment benefits rather than strike benefits, which could preserve the union’s resources.

    Strikers are not eligible for unemployment benefits, but workers on temporary layoff can receive the benefits, which differ by state but would be less than the union’s $500 strike pay. There also are legal questions in different states about qualifying for unemployment.

    An official with Ford told reporters Thursday that under state law, workers in Michigan and Ohio were not eligible to receive unemployment benefits if they were laid off due to lack of parts at their plant caused by a strike. There are some other states, such as Kentucky and Tennessee, where they would be able to receive unemployment benefits, according to the officials.

    But they said none of the Ford UAW members would be eligible for so-called “sub-pay,” which they typically receive during temporary layoffs. Sub pay is far more lucrative, covering most of the gap between unemployment benefits, typically less than $300 a week, and normal company pay, which can be close to $1,300 a week.

    GM CEO Mary Barra sent a letter to employees Thursday saying the company’s latest offer now includes a 20% raise, with an immediate 10% pay hike. The lower paid temporary employees would get $20 an hour, which represents a 20% raise from the current $16.67 an hour they receive. She called the offer “historic.”

    “We are working with urgency and have proposed yet another increasingly strong offer with the goal of reaching an agreement tonight. Remember: we had a strike in 2019 and nobody won,” she said in the letter.

    Farley told CNN the offer from Ford of a 20% raise over the life of the contract is the most lucrative offer the company has made to the union in the 80 years it has been there. But he said meeting the union’s demands of close to a 40% raise, along with a four-day work week and other benefit improvements, would have been unaffordable.

    Farley blamed the union for the lack of progress in negotiations. But the union has blamed the companies for waiting until the end of August or early September to make their first counteroffers.

    The union came up with the 40% raise request based on the increase in the pay of CEOs at the three automakers over the last four years. Ford CEO pay rose 21%, from $17 million for Farley’s predecessor Jim Hackett in 2019, to $21 million for Farley last year. (Farley is the lowest compensated of the three CEOs.)

    Asked why the union workers shouldn’t get the same increases, Farley responded, “We’re really open to huge increases.” As to the 40% increases for CEOs, Farley responded, “I wasn’t CEO four years ago, but we have put on the table huge increases, double digit increases.”

    Ford has not had a strike since 1978; it has more UAW workers than the other two automakers.

    President Joe Biden spoke with Fain and leaders of the major auto companies “to discuss the status of ongoing negotiations,” the White House said Thursday.

    The White House declined to say Wednesday that Biden would support UAW workers if they chose to strike.

    “I’m gonna leave it at, [Biden] believes the auto workers deserve a contract that sustains middle class jobs and wants the parties to stay at the table, to work round the clock to get a win-win agreement,” Council of Economic Advisors Chair Jared Bernstein told reporters during Wednesday’s White House press briefing.

    Biden became directly involved in 11th hour negotiations a year ago to stop engineers and conductors at the nation’s major freight railroad from going on strike and was credited by both sides with a deal being reached at that time. But Biden and Congress had power under a different labor law to keep workers on the job by imposing a contract, a power he used later in the year when rank-and-file rail workers rejected the deal he brokered and again threatened to strike

    The autoworkers fall under a different labor law, one that leaves Biden with no power to stop a walkout. And he has limited influence with the UAW, which has been critical of his push to have the industry convert to electric vehicles, a move that could cost members jobs in the long run.

    In a statement midday Thursday, GM said it remains in “good faith negotiations” with the UAW but cautioned that a strike would be disruptive to its business.

    “Any disruption would negatively impact our employees and customers, and would have an immediate ripple effect across our communities,” a company spokesperson said.

    One sticking point in negotiations is that wages are only part of the gap between the two sides. In some ways it might be the least difficult problem to solve, said Patrick Anderson, CEO of Anderson Economic Group, a Michigan research firm.

    “The difference between the automakers and the unions on wages is a gap that could be closed,” said Anderson. “The differences involving non-wage demands are a gulf, not a gap.”

    The union is attempting to reverse deep concessions that go back as far as 2007. At the time, years of losses had left Ford nearly out of cash, and GM and Chrysler were on their way to bankruptcy and federal bailouts.

    The number one concession the union wants to end is a lower tier of wages and benefits for workers hired since 2007. While top pay for those newer hires, who today make up a majority of membership, is the same as the $32.32 paid to more senior members, it takes many more years to reach that level.

    The union also wants to restore traditional pension plans for those hired since 2007, as the more senior workers now receive, as well as the same retiree health care coverage. And to protect members from rising prices, it wants a return of the cost-of-living adjustments to pay that all employees lost in 2007.

    Even Fain calls those demands “ambitious,” but he said they’re driven by record or near record profits at the automakers.

    Pandemic supply chain disruptions and shortages of some parts, particularly computer chips, have led to record car prices. The average purchase price of a new car in August was nearly $48,000, according to Edmunds. That’s up 30% from August of 2019.

    Automakers have used their limited supply of parts to build vehicles loaded with options to maximize profits. That’s produced a strong bottom line. General Motors reported record profits in 2022, and Ford posted near-record profits as well. Stellantis, a European-based automaker formed in 2021 by the merger of Fiat Chrysler and PSA Group, had 2022 profits up 26% compared to its first year of combined operations.

    A strike that halts production nationwide could also be costly for the automakers at a time of strong demand by car buyers and strong competition from nonunion automakers such as Tesla and foreign brands. GM said it lost $2.9 billion during its 2019 strike.

    While the automakers have done their best to build up inventory at dealerships, car buyers could have trouble finding some of the models they want and could have to wait longer for their choice of colors and options. And limited supplies could put upward pressure on some vehicle prices.

    – CNN’s DJ Judd contributed to this report

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  • Autoworkers strike: What to watch for as the clock ticks down | CNN Business

    Autoworkers strike: What to watch for as the clock ticks down | CNN Business

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    New York
    CNN
     — 

    Time is running out to avert a strike that could shut down America’s unionized auto assembly plants and other manufacturing facilities.

    The United Auto Workers contracts with General Motors, Ford and Stellantis expire at 11:59 pm Thursday. The contracts cover 145,000 UAW members at the three companies.

    If there’s no new deal by the contract expiration, the union has said it will start targeted strikes against a undisclosed number of facilities at each company.

    Here’s what to watch as the clock ticks down:

    It might not take much to virtually shut down the output from all the companies.

    The companies operate a complex network of plants that depend on getting parts from different facilities.

    Slowing or stopping the production of a few engine or transmission plants at each company could be as effective at stopping operations as a full strike at all plants, according to industry experts.

    One engine or transmission location per company might be enough to shut down nearly three-quarters of the US assembly plants, said Jeff Schuster, global head of automotive for GlobalData, an industry consultant.

    “Two plants per company, you can pretty much idle North America,” he said.

    Halting the companies’ assembly lines would likely happen in less than a week that way, Schuster said.

    One advantage of a targeted strike for the union is the potential to save resources and extend a possible walkout. Striking union members are eligible for $500 a week from the union’s strike fund.

    If all 145,000 UAW members among the three automakers were to strike at the same time, it could cost the fund more than $70 million a week, draining the $825 million fund.

    With targeted strikes, it’s possible that the companies will shut down operations and lay off members who are not technically on strike. That could make them eligible to receive state unemployment benefits rather than strike benefits, which could preserve the union’s resources. But there are legal questions about qualifying for unemployment.

    UAW President Shawn Fain told his members in a Facebook Live appearance Wednesday evening that if they are not in one of the plants that the union picks to go on strike, they should stay on the job. He said in that case they would be working under an expired contract, rather than on an extended contract.

    Fain said he would announce at 10 pm Thursday which plants have been selected to go on strike. Among the likely targets, Schuster said, are a Stellantis transmission plant in Kokomo, Indiana, a GM transmission plant in Toledo, Ohio, and a Ford transmission plant in Livonia, Michigan. Those three plants have just over 6,000 UAW members on staff, according to figures available from the companies’ websites.

    But there is still a chance no plants will go on strike and no operations will be disrupted. While Fain warned members that a strike appeared likely – “We’re likely going to have to take action,” he said during his remarks Wednesday – he also said there had been movement at the bargaining tables.

    Fain said that all the automakers had boosted the amount they were offering to raise wages, with Ford now offering a 20% raise during the life of the contract, GM is offering 18% and Stellantis is offering 17.5%, although Fain cautioned that still did not meet the union members’ needs, which had started with a demand for an immediate 20%, and four additional raises of 5% each over the course of a four-year deal.

    And all the automakers issued statements saying they want to reach tentative labor deals before the deadline that would avoid a strike. Despite the difference, there is a chance for an 11th hour settlement or settlements.

    There are separate union contracts at each of the traditional Big Three. That means there could be a tentative labor deal reached at Ford and GM that keeps those workers on the job, while the employees at Stellantis could go out on strike.

    Ford has not had a national strike since 1976 and has not had a strike of any kind at its US plants since 1978.

    In contrast, experts say Stellantis, which builds vehicles under the Jeep, Ram, Dodge and Chrysler brands, could see workers walk off.

    “I think there’s a 99% chance of a strike at Stellantis,” said Art Wheaton, director of labor studies at Cornell University’s Industrial and Labor Relations school in Buffalo.

    If the two sides are close to a deal at the deadline, they could agree to a temporary contract extension for hours or even days. That extension could even go on for months, as with the West Coast ports during negotiations with the International Longshore and Warehouse Union last year and earlier this year.

    Fain has repeatedly said that the 11:59 pm contract expiration is a “deadline, not a reference point.” In past negotiations, the union has sometimes chosen only one automaker to strike, while staying on the job at the other two. Once a deal was reached, the union moved to get the other automakers to accept that “pattern” as the basis for their own contract.

    But Fain insists the union will not follow that playbook this time.

    Sometimes one or both sides will walk away before the final minute before a contract expiration. Although the strike might not start until after the deadline, a breakdown of talks could kill the chance for an 11th-hour deal.

    That’s what happened in bargaining in May between the Writers Guild of America, which represents 11,000 writers, and the Alliance of Motion Picture and Television Producers, which represents major studios and streaming services in the contract negotiations. While the contract was due to end at midnight PDT, the talks ended about three hours earlier.

    Sometimes after talks break down, the parties can return to the table and reach a deal without a strike. That happened in July at UPS, as talks between the company and the Teamsters union ended after a marathon negotiating session in the early hours of July 5. Official talks did not resume for nearly three weeks. But when the two sides met again on July 25, they quickly reached a deal that averted an August 1 strike.

    But a break in talks at any of the automakers at this late date would not be a good sign.

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  • UAW strike countdown: Union president says targeted strike possible at all Big Three automakers

    UAW strike countdown: Union president says targeted strike possible at all Big Three automakers

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    United Auto Workers President Shawn Fain said Wednesday that autoworkers and the Big Three automakers are still far apart, although negotiations continue, and that the union may strike all of the Big Three at once.

    “We’re keeping all of our options open. An all-out strike is still a possibility,” Fain said during a webcast with members.

    The UAW and Ford Motor Co.
    F,
    +1.53%
    ,
    General Motors Co.
    GM,
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    and Stellantis NV
    STLA,
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    have made progress during their talks but were still far apart on the union’s key priorities, though negotiations will continue until the deadline of 11:59 p.m. Eastern on Thursday, Fain said.

    “For the first time in our history, we may strike all of the Big Three at once,” Fain said, adding that he looked at this time as “our defining moment.”

    He said if no deal is reached, there’s also the possibility of doing “standup strikes” at certain plants, designed to keep the companies guessing. These could escalate and spread elsewhere in order to give the union leverage in bargaining. He told UAW members that they should not strike unless their local is called to do so.

    A targeted strike helps the UAW avoid distributing strike pay, set recently at $500 a week per member, to all 150,000 of its members. But it could have a broader effect.

    “It is possible for strikes at critical parts plants to have much wider implications,” Marick Masters, a business professor at Wayne State University in Detroit, said in an interview with MarketWatch on Wednesday. 

    He noted that the 1998 strike against GM, a work stoppage by 9,200 workers at two of that company’s plants in Flint, Mich., resulted in shutdowns that affected more than 150,000 workers. 

    See: These Ford, GM plants are the most likely strike targets

    Jody Calemine, a senior fellow and director of labor and employment policy at the Century Foundation, a progressive think tank, said Wednesday that the union is employing an interesting strategy.

    “It will turn the screws slowly and probe for weaknesses, and try to get as much movement out of companies as possible while keeping the options to escalate,” he said.

    Calemine said Fain has done a “masterful job” of painting the fight as a “real showdown” between working families and the companies. But he added that “the principal danger for the union would be losing the narrative. Other places would continue to work, or get laid off or locked out.”

    That’s reflected in some of the online comments by UAW members who watched Fain’s update. One worker said on Facebook: “Strike us all or none at all.”

    The UAW president quoted scripture, repeated his calls for unity and said the “strike plan is driven by faith that together we can and will move mountains.”

    Fain said the companies have revised some of their offers: On wages, Ford has put forward a 20% increase over the life of the four-year contract, up from its previous offer of 9%, while GM’s latest offer is 18% and Stellantis’s offer is 17.5%. That’s compared to a wage increase of 40% — or 46% when compounded annually — that the union sought originally and later revised to 36%.

    “Their proposals don’t reflect the massive profits that we’ve generated for these companies,” Fain said.

    The union has pointed out that while the Big Three’s profit has risen 65% over the past four years, and the pay of each of the companies’ chief executives have risen 40%, the UAW top wage rate has risen 6% over that time.

    See: Why United Auto Workers are fighting to end a two-tier system for wages and benefits

    A GM spokesperson said Wednesday that the company continues to bargain in good faith and sent a statement that reads in part: “We are making progress in key areas that we believe are most important to our represented team members. This includes historic guaranteed annual wage increases, investments in our U.S. manufacturing plants to provide opportunities for all, and shortening the time for in-progression employees to reach maximum wages.”

    Ford and Stellantis did not immediately return a request for comment.

    The most recent U.S. autoworkers’ strike was at GM in 2019, which lasted for nearly six weeks and involved about 50,000 workers.

    See: Would a United Auto Workers strike provide an opportunity for Tesla — and push up used-car prices?

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  • Biden urges UAW and Big Three automakers to reach deal to avoid strike | CNN Business

    Biden urges UAW and Big Three automakers to reach deal to avoid strike | CNN Business

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    Washington DC
    CNN
     — 

    President Joe Biden sought to ramp up pressure on the United Auto Workers union and the nation’s three unionized automakers – Ford, General Motors, and Stellantis, known as the “Big Three” – one month ahead of a critical deadline for labor talks.

    “As the Big Three auto companies and the United Auto Workers come together — one month before the expiration of their contract — to negotiate a new agreement, I want to be clear about where I stand. I’m asking all sides to work together to forge a fair agreement,” Biden said in a new statement Monday.

    The White House has been closely monitoring the talks as the two sides appear far apart. The union is demanding significant pay raises of 40% or more for members to match increases in CEO pay at the companies over the last four years and a reversal of past concessions by the union.

    Negotiations could put the White House at odds with the union. While the AFL-CIO, which is made up of multiple independent unions, has already endorsed Biden’s reelection bid, calling him the “most pro-union president in our lifetimes,” the UAW itself has yet to join in that endorsement. A strike could have massive economic – and political – consequences. Biden and UAW President Shawn Fain met briefly in the West Wing last month while UAW leadership was at the White House briefing senior staff on their positions.

    The three contracts between the UAW and General Motors, Ford and Stellantis, which sells cars and trucks under the Dodge, Ram and Chrysler brands, are due to expire September 14. Fain last week denounced the most recent offer from Stellantis, throwing a copy of the offer in the trash during a video for members. Plans for strike authorization votes at all three companies is expected to be announced soon, the union said Monday.

    Traditionally the UAW will select one of the three companies to go first and have the other two put on hold while it concentrates on reaching a deal, then the union will push for similar from the other two automakers as part of a “pattern.”

    The UAW is pushing for an aggressive set of demands at the negotiating table, and has been critical of the Biden administration’s financial support for the transition to electric vehicles, arguing that the Biden administration has been overly supportive of automakers’ plans for EV battery plants that are expected to pay far less than union wages. Fain has publicly warned that UAW is prepared to strike, saying nearly 150,000 members will strike if the three automakers do not meet their demands.

    CNN has previously reported that while Biden enjoys hefty support from leadership of many unions, he has also faced lingering mistrust and concern among some of the rank-and-file of the UAW, according to people familiar with the dynamics, a perception fueled in part by the president’s intervention to avert a freight rail strike in December.

    In a nod to the UAW’s demands, Biden used the union’s “fair transition” to clean energy language.

    “I support a fair transition to a clean energy future. That means ensuring that Big Three auto jobs are good jobs that can support a family; that auto companies should honor the right to organize; take every possible step to avoid painful plant closings; and ensure that when transitions are needed, the transitions are fair and look to retool, reboot, and rehire in the same factories and communities at comparable wages, while giving existing workers the first shot to fill those jobs,” Biden said in the statement.

    The UAW said it saw the White House statement as an endorsement of it bargaining position.

    “We appreciate President Biden’s support for strong contracts that ensure good paying union jobs now and pave the way for a just transition to an EV future,” Fain said in a statement. “We agree with the president that the Big Three’s joint venture battery plants should have the same strong pay and safety standards that generations of UAW members have fought for.”

    The three automakers said they, too, want to reach deals that would avoid a strike.

    Ford pointed out that it employs more UAW members and builds more cars and trucks at US plants than any other automaker.

    “We look forward to working with the UAW on creative solutions during this time when our dramatically changing industry needs a skilled and competitive workforce more than ever,” it said.

    “Stellantis remains committed to working constructively and collaboratively with the UAW to negotiate a new agreement that balances the concerns of our 43,000 employees with our vision for the future,” said that company.

    “We will continue to bargain in good faith with the UAW to maintain our momentum and to provide opportunities for all in our EV future,” GM said in a statement.

    The union is concerned about the plans by all three automakers to convert from traditional gasoline powered vehicles to EVs in the coming decades. it takes an estimated one third less hours of work to assemble an EV than a car with an internal combustion engine, since that engine and the transmission that goes with it has so many moving parts missing from an EV.

    The Biden administration has been active in supporting the switch to EVs, providing tax credits for EV buyers and loans to build plants necessary for EVs, such as those that make batteries.

    There are about a dozen EV battery plants now under construction nationwide. For the most part, those plants are joint ventures between automakers and battery makers, and thus will not be covered under the UAW contracts with the Big Three. Workers at the one battery plant for one of the Big Three to open so far, a Warren, Ohio, plant for the joint venture between GM and LG, voted 98% in favor of joining the UAW. But the union has yet to reach a deal with plant management on a contract, and workers there are paid about half of what UAW members are paid at the Big Three.

    – CNN’s Vanessa Yurkevich contributed to this story

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  • Takeaways from the second Republican presidential debate | CNN Politics

    Takeaways from the second Republican presidential debate | CNN Politics

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    CNN
     — 

    The second 2024 Republican presidential primary debate ended just as it began: with former President Donald Trump – who hasn’t yet appeared alongside his rivals onstage – as the party’s dominant front-runner.

    The seven GOP contenders in Wednesday night’s showdown at the Ronald Reagan Presidential Library in California provided a handful of memorable moments, including former South Carolina Gov. Nikki Haley unloading what often seemed like the entire field’s pent-up frustration with entrepreneur Vivek Ramaswamy.

    “Honestly, every time I hear you, I feel a little bit dumber for what you say,” she said to him at one point.

    Two candidates criticized Trump’s absence, as well. Florida Gov. Ron DeSantis said he was “missing in action.” Former New Jersey Gov. Chris Christie called the former president “Donald Duck” and said he “hides behind his golf clubs” rather than defending his record on stage.

    Chris Christie takes up debate time to send Trump a clear message

    The GOP field also took early shots at President Joe Biden. South Carolina Sen. Tim Scott said Biden, rather than joining the striking auto workers’ union on the picket line Tuesday in Michigan, should be on the southern border. Former Vice President Mike Pence said Biden should be “on the unemployment line.” North Dakota Gov. Doug Burgum said Biden was interfering with “free markets.”

    However, what played out in the debate, hosted by Fox Business Network and Univision, is unlikely to change the trajectory of a GOP race in which Trump has remained dominant in national and early-state polling.

    And the frequently messy, hard-to-track crosstalk could have led many viewers to tune out entirely.

    Here are takeaways from the second GOP primary debate:

    Trump might have played it safe by skipping the debates and taking a running-as-an-incumbent approach to the 2024 GOP primary.

    It’s hard to see, though, how he would pay a significant price in the eyes of the party’s voters for missing Wednesday night’s messy engagement.

    Trump’s rivals took a few shots at him. DeSantis knocked him for deficit spending. Christie mocked him during the night’s early moments, calling him “Donald Duck” for skipping the debate and then in his final comments said he would vote Trump off the GOP island.

    “This guy has not only divided our party – he’s divided families all over this country. He’s divided friends all over this country,” Christie said. “He needs to be voted off the island and he needs to be taken out of this process.”

    However, Trump largely escaped serious scrutiny of his four years in the Oval Office from a field of rivals courting voters who have largely positive views of his presidency.

    “Tonight’s GOP debate was as boring and inconsequential as the first debate, and nothing that was said will change the dynamics of the primary contest,” Trump campaign senior adviser Chris LaCivita said in a statement.

    The second GOP primary debate was beset by interruptions, crosstalk and protracted squabbles between the candidates and moderators over speaking time.

    That’s tough for viewers trying to make sense of it all but even worse for these candidates as they attempted to stand out as viable alternatives to the absentee Trump.

    Further complicating the matter, some of the highest polling candidates after Trump – DeSantis and Haley – were among those least willing to dive into the muck, especially during the crucial first hour. The moderators repeatedly tried to clear the road for the Florida governor, at least in the beginning. But he was all but absent from the proceedings for the first 15 minutes.

    Ramaswamy fared somewhat better, speaking louder – and faster – than most of his rivals. But he was bogged down repeatedly when caught between his own talking points and cross-volleys of criticisms from frustrated candidates like Scott.

    The moderator group will likely get criticism for losing control of the room within the first half-hour, but even a messy debate tells voters something about the people taking part.

    All night, Scott seemed like he was looking for a fight with somebody and he finally got that when he set his sights on fellow South Carolinian Haley.

    He began his line of attack – which Haley interjected with a “Bring it” – by accusing her of spending $50,000 on curtains in a $15 million subsidized location during her time as the US ambassador to the United Nations.

    What ensued was the two Republicans going back and forth about the curtains. “Do your homework, Tim, because Obama bought those curtains,” Haley said, while Scott repeated, “Did you send them back? Did you send them back?” Haley then responded: “Did you send them back? You’re the one who works in Congress.”

    It wasn’t the most acrimonious moment of the night, but it was up there. The feuding between the two South Carolina natives seemed deep, but it’s worth remembering that about a decade ago, when Haley was governor, she appointed Scott to the Senate seat he currently holds after Republican Jim DeMint stepped down. That confidence in Scott seems to have dissolved in this presidential race.

    Confronted by his Republican competitors for the first time in earnest, DeSantis delivered an uneven performance from the center of the stage – a spot that is considerably less secure than it was heading into the first debate in Milwaukee.

    Despite rules that allowed candidates to respond if they were invoked, DeSantis let Fox slip to commercial break when Pence seemed to blame the governor for a jury decision to award a life sentence, not the death penalty, to the mass murderer in the Parkland high school shooting. (DeSantis opposed the decision and championed a law that made Florida the state with the lowest threshold to put someone on death row going forward.) Nor did he respond when Pence accused DeSantis of inflating Florida’s budget by 30% during his tenure.

    He later let Scott get the last word on Florida’s Black history curriculum standards and struggled to defend himself when Haley – accurately – pointed out that he took steps to block fracking in Florida on his second day in office.

    Before the first debate in Milwaukee, a top strategist for a pro-DeSantis super PAC told donors that “79% of the people tonight are going to watch the debate and turn it off after 19 minutes.”

    By that measure, the Florida governor managed to first speak Wednesday night just in the nick of time – 16 minutes into the debate. And when he finally spoke, he continued the sharper attacks on the GOP front-runner that he has previewed in recent weeks.

    DeSantis equated Trump’s absence in California to Biden, who DeSantis said was “completely missing in action for leadership” on the economy, blaming him for inflation and the autoworkers strike.

    “And you know who else is missing in action? Donald Trump is missing in action,” DeSantis said. “He should be on this stage tonight. He owes it to you to defend his record.”

    But DeSantis then largely pulled back from further targeting Trump – until a post-debate Fox News appearance when he challenged the former president to a one-on-one face-off.

    DeSantis ended the debate on a strong note. He took charge by rejecting moderator Dana Perino’s attempts to get the candidates to vote one of their competitors “off the island.” He ended his night forcefully dismissing a suggestion that Trump’s lead in the polls held meaning in September.

    “Polls don’t elect presidents, voters elect presidents,” he said, before pointing a finger at Trump for Republicans’ electoral underperformance in the last three elections.

    But as the super PAC strategist previously pointed out: By then, who was watching?

    In the final minutes of the debate, co-host Ilia Calderón of Univision asked Pence how he would reach out to those Latino voters who felt the Republican Party was hostile or didn’t care about them.

    “I’m incredibly proud of the tax cut and tax reform bill,” he said, referring to Republicans’ sweeping 2017 tax law. He also cited low unemployment rates for Hispanic Americans recorded during the Trump-Pence administration.

    Scott, faced with the same question, said it was important to lead by example. “My chief of staff is the only Hispanic female chief of staff in the Senate,” he said. “I hired her because she was the best, highest-qualified person we have.”

    Calderón focused much of her time on a series of policy questions that highlighted the candidates’ records on immigration and gun violence. At times, some of them struggled to respond directly.

    She asked Pence if he would work with Congress to find a permanent solution for people who were brought to the country illegally as children. The Trump-Pence administration ended the Deferred Action for Childhood Arrivals program, which gave those young people protected status. She repeated the question after Pence focused his answer on his work securing the border. He then talked about his time in Congress.

    “Let me tell you, I served in Congress for 12 years, although it seemed longer,” he said. “But you know, something I’ve done different than everybody on this stage is I’ve actually secured reform in Congress.”

    The candidates – and moderators – shy away from abortion talk

    It took more than a 100 minutes on Wednesday night for the first question on abortion to be asked.

    About five minutes later, the conversation had moved on. What is potentially the most potent driver (or flipper) of votes in the coming election was afforded less time than TikTok.

    Tellingly, no one onstage seemed to mind.

    Perino introduced the subject by asking DeSantis whether some Republicans were right to worry that the electoral backlash to abortion bans – or the prospect of their passage – would handicap the eventual GOP nominee.

    DeSantis, who signed a six-week ban in April, dismissed those concerns, pointing to his success in traditionally liberal parts of Florida on his way to winning a second term in 2022. Then he swiped at Trump for calling the new laws “a terrible thing and a terrible mistake.”

    Christie took a similar path, arguing that his two terms as governor of New Jersey, a traditionally blue state, showed it was possible for anti-abortion leaders to win in a environments supportive of abortion rights.

    And with that, the abortion “debate” in Simi Valley ended abruptly. No more questions and no attempts by the rest of the candidates to interject or otherwise join the chat.

    Candidates pile on Ramaswamy

    Some of the candidates onstage didn’t want to have a repeat of the first debate, in which Ramaswamy managed to stand out as a formidable debater and showman.

    Early in Wednesday’s debate, Scott went after the tech entrepreneur, saying his business record included ties to the Chinese Communist Party and money going to Hunter Biden. The visibly annoyed Ramaswamy shifted gears from praising all the other candidates onstage to defending his business record. But Scott and Ramaswamy ended up talking over each other.

    A little later on Pence began an answer with a knock on Ramaswamy, saying, “I’m glad Vivek pulled out of his business deal in China.” At another point after Ramaswamy had responded to a question about his use of TikTok, Haley jumped in, saying, “Every time I hear you, I feel a little bit dumber from what you say” and then going on to say, “We can’t trust you. We can’t trust you.” As Ramaswamy tried to readopt his unity tone, Scott could be heard trying to interrupt him.

    Despite the efforts of moderators to pin them down, DeSantis and Pence struggled to respond when challenged on their respective records on health care.

    Asked about the Trump administration’s failure to end the Affordable Care Act as promised, Pence opted instead to answer a previous question about mass gun violence. When Perino pushed Pence one more time to explain why Obamacare remains not just intact but popular, the former vice president once again demurred.

    Fox’s Stuart Varney similarly pressed DeSantis to explain why 2.5 million Floridians don’t have health insurance.

    DeSantis found a familiar foil for Republicans in California: inflation. Varney, though, said it didn’t explain why Florida has one of the highest uninsurance rates in the country, to which DeSantis had little response.

    “Our state’s a dynamic state,” DeSantis said, before pointing to Florida’s population boom and the low level of welfare benefits offered there.

    Haley, though, appeared ready to debate health care, arguing for transparency in prices to lessen the power of insurance companies and providers and overhauling lawsuit rules to make it harder to sue doctors.

    “How can we be the best country in the world and have the most expensive health care in the world?” Haley said.

    This story has been updated with additional information.

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  • Stellantis to put second battery plant in town where EVs threaten current jobs | CNN Business

    Stellantis to put second battery plant in town where EVs threaten current jobs | CNN Business

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    New York
    CNN
     — 

    Stellantis and Samsung plan to build a second EV battery plant in Kokomo, Indiana, a town where many current Stellantis workers see such plants as a threat to their current jobs.

    EV battery plants are a critical part of the plans of traditional automakers to transition from gasoline-powered cars to electric vehicles in coming decades. But they could be a threat to existing jobs building engines and transmissions, which are not needed in an EV. Stellantis has four plants in Kokomo alone building engines and transmissions, employing more than 5,000 hourly workers between them.

    Stellantis, which builds cars under the Jeep, Ram, Dodge and Chrysler brands, along with unionized rivals General Motors and Ford, are now in the fourth week of a strike by the United Auto Workers union, and the future of jobs building EVs are a central issue in the strike.

    While the four Kokomo plants are not on strike, the union is on strike at Stellantis’ assembly complex in Toledo, Ohio, as well as at 20 parts and distribution centers spread across 14 states.

    All the automakers are in the process of building EV battery plants, and all of them are using joint ventures with battery manufacturers such as Samsung to build and run the plants. They have all insisted that will make the employees of the plants employees of the joint ventures, not the automakers themselves. And the pay at US EV battery plants that have opened so far is a fraction of what UAW members get when working for the automakers.

    UAW President Shawn Fain announced Friday that GM had agreed to a key union demand that employees at its EV battery plants will be part of the company’s national master labor agreement with the UAW. GM has not confirmed that agreement, and details of how much those workers would be paid and if they’ll be considered GM employees or covered in the agreement as employees of separate companies is not yet known.

    But Fain hailed that agreement as a major win for the union and said it would now press Ford and Stellantis to agree to similar terms if they want to end the strike.

    Samsung and Stellantis announced plans for its latest battery plant in the wake of that announcement.

    The two companies announced Wednesday that they are investing more than $3.2 billion to build the new plant, which will open in early 2027 and have an annual capacity of 34 gigawatt hours. Its opening will bring about 1,400 new jobs to Kokomo, located an hour north of Indianapolis.

    StarPlus Energy, the joint venture formed by Samsung and Stellantis, previously chose Kokomo for its first gigafactory that’s currently under construction and scheduled to open in 2025.

    In total, the two factories will produce 67 gigawatt hours annually. “Indiana’s economy is on a roll,” said Indiana Governor Eric Holcomb in a press release, adding that the second plant means the companies are doubling their capital investment and the amount of new jobs being created.

    The factories will help Stellantis meet its goal for battery electric passenger cars to make up 100% of its sales in Europe, and 50% of its sales in the US, by 2030. Stellantis announced in 2021 an “aggressive” investment of $35 billion for electric vehicle production and needs 400 gigawatt hours annually to meet its 2030 goal.

    Stellantis was created in 2021 through the merger of Fiat Chrysler and PSA Group, maker of Peugeot, Citroën, Opel and Vauxhall cars in Europe. Shares rose nearly 2% in premarket trading.

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  • The threat of a freight railroad strike is back — but not until next month | CNN Business

    The threat of a freight railroad strike is back — but not until next month | CNN Business

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    New York
    CNN Business
     — 

    A union of railroad track maintenance workers has rejected a tentative agreement with the nation’s freight carriers, renewing the threat that there could be a strike that shuts down this vital link in the nation’s already struggling supply chain.

    The vote, announced Monday by the Brotherhood of Maintenance of Way Employes Division, was 43% in favor of the proposed five-year contract, and 57% opposed.

    About 12,000 of the 23,000 members of the BMWE participated in the vote. It is the third largest of the major freight railroad unions. The two largest freight unions, which represent the more than 50,000 engineers and conductors who make up the two-person train crews, are conducting the their own rank-and-file ratification vote by mail. Those votes will be counted on Nov. 17.

    The BWME said it will now enter negotiations with the association that represents management at the nation’s major freight railroads in an effort to reach a new deal. Without a new deal there could be a strike, but not until at least Nov. 19, according to the union. Things will remain status quo with the union’s contract until then.

    A statement from the association negotiating on behalf of railroad management said it was “disappointed” with the vote, but given that the two sides had decided to maintain the status quo, “the failed ratification does not present a risk of an immediate service disruption.”

    Even if the members of the two larger unions vote in favor of their deals, they would not report to work if the BMWE were to go on strike. And the fact that the BMWE voted down the contract is probably a sign that rank-and-file anger towards railroad management could lead to no votes at the two larger unions as well.

    “I think this is the canary in the coal mine for the engineers’ and conductors’ votes,” said Todd Vanchon, professor of labor studies at Rutgers University. “They were the ones you anticipate would reject a deal. The fact that the BMWE voted no suggests a no vote [by train crew members] is more likely.”

    The tentative labor deals were reached on Sept. 15 following a marathon 20-hour bargaining session that included direct intervention from President Joe Biden and Labor Secretary Marty Walsh. The new contracts include an immediate 14% raise with back pay dating to 2020, and raises totaling 24% during the five-year life of the contract that runs from 2020 through 2024. They also gives union members cash bonuses of $1,000 a year. All told, the backpay and bonuses will give union members an average payment of $11,000 per worker once the deal is ratified.

    But the deal was difficult to reach not because of the financial terms, but because of work rules that unions said had brought engineers and conductors to a breaking point. Staffing shortages had required crew members to be on call seven days a week, ready to report to work at short notice. And union leadership said those rules, which were adjusted as part of the contract, had caused great anger at management among rank-and-file members.

    Despite that discord, the unions’ leadership expressed confidence that their members would ratify the deals, even if they didn’t get everything they wanted at the bargaining table.

    “I think we got everything we could,” Dennis Pierce, president of the engineers union, told CNN on the day the deal was reached. “And I think once our membership understands where we sit and what’s in it, I think it’ll ratify.”

    Numerous smaller unions have already approved the deal. The only group that initially rejected it, the Machinist union which represents about 5,000 mechanics for locomotives and track equipment and facility maintenance personnel, has subsequently reached a new tentative agreement without a strike. The Machinists’ rank and file is again considering that deal.

    The Biden administration was desperate to avoid a rail strike because of fears it would upend already strained supply chains. The major railroads carry 30% of the nation’s freight when measured by weight and distance traveled, and a strike could have caused shortages and higher prices for such essentials as food and gasoline, forced factories without parts to close down and left store shelves empty during the holiday shopping period. The only potential good news for the Biden administration is that if there is a strike, it would now take place after the midterm elections.

    Rank and file union member anger hasn’t just been expressed at railroads. Union members working in other industries have recently balked at approving deals, even when recommended by their unions’ leadership. Although most union contracts are ratified, there have been some very high-profile examples of angry union members voting no.

    About 10,000 members of the United Auto Workers at farm equipment maker John Deere went on strike last fall after rejecting a tentative agreement. That rejected offer included immediate raises in their base pay of 5% to 6%, and additional wage increases later in the contract that could have increased average pay by about 20% over the six years. And it had a cost-of-living adjustment that would give them additional pay based up future inflation.

    But more than 90% of the UAW members at Deere voted no and went on strike, and then stayed on strike after rejecting a subsequent deal. They finally returned to work after five weeks after a third vote on a similar package passed.

    Striking workers at cereal maker Kellogg

    (K)
    also rejected a tentative deal and decided to stay on strike in December before finally agreeing to a deal weeks later.

    And only 50.3% of film production workers voted in favor of a deal last fall that achieved virtually all the bargaining goals of their union, a contract that averted a strike by 63,000 technicians, artisans and craftspeople which could have brought production of movies, television and streaming shows to a halt.

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  • Biden kicks off reelection bid with union rally in Philadelphia | CNN Politics

    Biden kicks off reelection bid with union rally in Philadelphia | CNN Politics

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    CNN
     — 

    President Joe Biden kicked off his reelection campaign Saturday at a union rally in his frequent haunt of Pennsylvania, the state that remains an intersection of his personal and political identities that he hopes can propel him to a second term.

    The first official rally of his final political campaign was a moment for Biden to underscore recent economic wins that undergird his argument for another four years in the White House.

    “Just think back. Remember what it was like when I came to office, we came into office. Remember the mess we inherited,” Biden told the audience in Philadelphia. “Now look at where we are today.”

    To a roaring crowd, who repeatedly cheered “four more years,” the president touted several accomplishments, including the bipartisan infrastructure law, a coronavirus relief package, a bipartisan semiconductor chip manufacturing law and the recently negotiated debt ceiling deal that helped avert a US default.

    Biden also criticized recent Republican tax proposals while describing what he called his middle-class vision for the American economy, referring to it several times as “Biden-omics.”

    Biden made only brief mention of Donald Trump, the current front-runner for the 2024 GOP presidential nomination, steering clear of the former president’s recent federal indictment and arraignment but hitting him on infrastructure.

    “Under my predecessor, infrastructure week became a punchline,” Biden said. “On my watch, we’re making infrastructure a decade headline.”

    First lady Jill Biden, who spoke shortly before her husband, highlighted the president’s optimism. Wearing a corsage to mark their 46th wedding anniversary Saturday, the first lady recalled how she met Biden following the death of his first wife and baby daughter in a tragic car accident that also injured his two sons.

    “What I love about Joe is that even though he has faced unimaginable tragedies, his optimism is undaunted,” Jill Biden said. “His strength is unshakeable.”

    She added that the president was “not done.”

    “He’s ready to finish the job,” she said. “He’s ready to win, and with your help, he will.”

    Though his economic wins were the centerpiece of Biden’s opening campaign event, polls show many voters give him poor marks for his handling of the economy, particularly as prices have soared post-pandemic. Recent figures have shown inflation easing, however, and fears of an imminent recession have faded.

    Biden has said more Americans will come to reward him for his economic stewardship once the benefits of some of his signature legislative achievements, including a new infrastructure law, begin taking hold.

    Labor groups that threw their backing behind Biden ahead of his speech include the AFL-CIO, which said it was the earliest point in a presidential election cycle it had ever endorsed a candidate.

    “There’s absolutely no question that Joe Biden is the most pro-union president in our lifetimes,” said AFL-CIO President Liz Shuler. “From bringing manufacturing jobs home to America to protecting our pensions and making historic investments in infrastructure, clean energy and education, we’ve never seen a president work so tirelessly to rebuild our economy from the bottom up and middle out.”

    Supporters cheer before Biden speaks at the Pennsylvania Convention Center.

    Biden, who made his first stop after announcing his reelection bid a legislative conference for North America’s Building Trades Unions in Washington, has long relied on union support for his political ambitions.

    “I’m more honored by your endorsement than you can imagine – coming this early, it’s going to make a gigantic difference in this campaign,” Biden said during Saturday’s event in Philadelphia, where he called himself “the most pro-union president in American history.”

    Not all unions have thrown their support behind Biden’s reelection bid. The powerful United Auto Workers said last month it was holding off on endorsing Biden, citing concerns over his policies that would encourage a transition to electric vehicles, according to a memo from the union.

    The UAW has more than 400,000 members, and Biden has touted its support in the past. Last year he called American autoworkers “the most skilled autoworkers in the world.” The group’s membership is mostly concentrated in Michigan, a presidential election battleground.

    Biden also rankled union members last year when he signed legislation that averted a nationwide rail strike – a step he said was necessary to prevent a stoppage of important freight movement.

    Biden’s campaign has leaned into his economic record, including releasing a 60-second ad titled “Backbone” last month. The spot struck a populist tone, mixing audio of the president speaking about “investing in places and people that have been forgotten” and a narrator ticking through the administration’s work to boost infrastructure and manufacturing in the country.

    “Joe Biden’s building an economy that leaves no city, no town, no American behind,” the narrator says.

    This story has been updated with additional information.

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