Auto workers for the “Big Three” plants in Michigan (GM, Ford and Stellantis) have been on strike since Sept. 15. This week, both President Joe Biden and former President Donald Trump (the current GOP candidate frontrunner for the 2024 election) have made overtures to those on strike.
What does that indicate about where the United Auto Workers’ negotiations are headed? Guy Williams, president of Gulf Bank and Trust, joined WWL’s Newell Normand to discuss the politicians’ foray into union matters.
“One of the interesting interconnections is former President Trump announced he was going to Michigan to stand with the strikers and meet with autoworkers on Wednesday,” said Williams. “And then President Biden said he was going to go on Tuesday and walk the picket line with the protesters.”
In a video posted to his X (formerly Twitter) account Thursday, Biden is shown telling strikers: “You made a lot of sacrifices, you gave up a lot. It’s a simple proposition. It’s just about being fair. Folks, stick with it, because you deserve a significant raise and other benefits.”
Although the auto manufacturers have offered raises, UAW President Shawn Fain has said they aren’t substantial enough. At the same time, the manufacturers are gearing up to increase production of electric vehicles, in part due to government mandates. With this switch, they are considering cutting workers. Fain is expected to announce the next round of plants to go on strike at 10 a.m. Friday if no deal is reached before then, according to WWJ Newsradio in Detroit.
WWJ also reported that Trump told union members at Drake Enterprises, a car component manufacturer, “what they’re doing to the auto industry in Michigan and throughout the country is absolutely horrible and ridiculous.”
He also said that Biden’s policies have left American workers “screwed.”
“So, you have political influence on both sides, each one trying to one up the other and be involved,” Williams explained. “It really is an interesting time right now for the… strike at this moment. It’s sort of advantage [to] auto workers.”
Other things going against the car companies are “strategic errors,” made before the strike – especially approving significant pay increases for executives.
“It’s not big money in terms of GM and Ford’s total budget,” said Williams. “But when you included a big increase for the CEO and then you have a strike coming, it’s awful hard to say ‘We don’t have any money.’ It just doesn’t… it doesn’t look good.”
Now, around two weeks into the strike, things are moving into a new phase. Williams said that Fain is setting his sights on parts.
“And it’s an interesting choice because the parts plants don’t affect making new cars, they affect getting old cars repaired,” he said. “So, the theory is this will be something that will hurt the dealerships and also make auto buyers potentially, you know, upset and, you know, call on auto manufacturers.”
Still, the situation is complicated, and Williams thinks it is possible that the unions might overplay their hand. Listen to his full breakdown of the situation with Normand here.