Electric vehicle skepticism from auto workers puts Biden in a tough spot

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ECONOMIC POLICY

Electric vehicle skepticism from auto workers puts Biden in a tough spot

White House faces an awkward balancing act as UAW negotiates contract with automakers General Motors, Ford and Stellantis

By Jeanne Whalen
July 10, 2023 at 6:00 a.m. EDT

As contract negotiations between big automakers and the United Auto Workers get underway this week, President Biden faces an awkward balancing act between high-profile priorities: Championing labor rights and advancing green-energy policy.

The UAW’s new leadership has sounded a string of alarms in recent weeks about the Biden-backed push toward electric vehicles, criticizing the relatively low pay workers are earning at one new battery factory and blasting the closure of older gasoline-vehicle factories. In contract negotiations with Ford, General Motors and Stellantis, the UAW’s priorities include ensuring that workers at older factories can transition to new EV jobs, and securing pay and benefits for EV workers that match those in the gasoline era.

The union has also directed unusual ire at Biden, a longtime ally of the labor movement, asking why the government is using billions of taxpayer dollars to subsidize battery and EV factories without requiring strong pay.

If progress isn’t made on the multiyear contracts covering roughly 150,000 UAW workers, some plants could go on strike as early as September. ... For their part, the companies have said they are committed to creating thousands of new union jobs with attractive wages, while also controlling costs in an increasingly competitive global industry.

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Lauren Kaori Gurley contributed to this report.

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By Jeanne Whalen
Jeanne Whalen is a reporter covering business around the world. She previously reported for the Wall Street Journal from New York, London and Moscow. Twitter https://twitter.com/JeanneWhalen