The End of the UAW Strike and President Biden’s Reelection

President Biden visits a General Motors factory in Detroit in 2021. Photo by Adam Schultz.

On September 15th, 12,700 workers walked off Ford, General Motors, and Stellantis plants, beginning an unprecedented strike. The walk-offs, beginning at plants in Wayne, Michigan; Wentzville, Missouri; and Toledo, Ohio, represented the first simultaneous strike of the United Auto Workers (UAW) against each of the Big Three car manufacturers. Throughout negotiations, the strike slowly expanded to more and more plants, increasing both the scope of the strike and its impact on the economy. At the center of this strike was Shawn Fain, the newly elected president of the UAW.

Fain is outspoken and ambitious, representing a sharp change from previous UAW presidents. He is the first president of the union to be elected by popular vote, following massive changes made to the UAW as a result of years of scandals and corruption by former UAW presidents (including consecutive union presidents going to prison). Fain’s reputation as a reformer and outspoken critic of former union leadership, in part earned by his ultimately unsuccessful 2007 grassroots campaign to reject a contract with Chrysler, led to his election, albeit by slim margins of 69,459 to 68,967 votes. His goals for the strike were lofty, attempting to achieve gains given up by union leadership amid the Great Recession and to pave the way for the union’s future in an auto-industry forced to adapt to electric vehicle production. Going in, the final outcome of the strike would define whether Fain would deliver on the promises he made to get elected, or let down his reputation as a reformer by continuing the methods and marginal victories of the previous leadership that he spoke out adamantly against throughout his presidency campaign.  

President Biden’s personal involvement on the side of the union workers has made this strike historic. On September 26th, Biden became the first sitting president to join a strike’s picket line, an attempt, perhaps, to live up to his self-given title of “the most pro-union President in American history.” Biden was unequivocal in his support for the union’s demands, urging the striking workers to “stick with it,” and expressing support for their demand for a pay increase. 

For Fain and Biden, any successes or failures of the strike and its outcomes have been tied to their personal reputations. Fain’s case is more obvious, due to his position as UAW president. On the other hand, President Biden’s political calculus is less clear. By tying his own support to a strike which cost auto companies billions of dollars and could potentially increase the cost of cars for American consumers, Biden has risked his already difficult chances at reelection. With the strike now over, however, Biden's public support of the strike and its relative success might initially seem to be a positive outcome for him, earning him support from the UAW for his reelection campaign.

The strike concluded with success for both Fein and Biden, with Fein receiving many of the ambitious demands he put forward at the beginning of negotiations, and Biden seeing the political risk of his support for the UAW being rewarded with a contract which holds mutual benefits for both the UAW and the car manufacturers. Entering negotiations, Fain had demanded a 32-hour work week with 40-hours of pay, and the hourly pay to be increased by 36% over the next four years with cost of living pay raises to adjust for future inflation. Ultimately, the final deal reached was a 25% pay increase over the next four and a half years, with provisions to protect against inflation. Another important aspect in negotiations was the protection of factory jobs as the auto-industry transitions to electric vehicle production, since factories for electric vehicles were not protected by the UAW and the transition could lead to a loss of traditional autoworker jobs. The new contract does include some protections for workers of gasoline cars, but the future of many autoworkers remains in doubt as the possibility of job losses through this transition remains. Finally, an essential point in the union’s negotiations was the end of the tiered worker system employed by auto manufacturers, wherein many temporary workers were hired and paid just $17 per hour, far less than the previous compensation received by the highest tier workers of $32.32 per hour. The new deal will end tiered workers, leading to large pay increases for many. For Fein, this contract represents the validation of his unconventional negotiation tactics, which included throwing a contract proposal from Stellantis in the trash, stating that, “That’s where it belongs: the trash,” and making demands which he himself labeled as “audacious.” On the other hand, car manufacturers can be somewhat pleased with the outcome of this strike as well, with Fein ultimately compromising on his demands to end the strike before it became excessively prolonged. This balance between Fein and the autoworkers ultimately served Biden well, as an agreement found between the two parties avoided a prolonged strike which would have been incredibly detrimental to the economy. Given the UAW strike fund only covering 40% of the workers lost wages during the strike, and the lack of production costing car manufacturers such as General Motors $200 million per week in losses, a longer strike only served to harm each side and the public perception of Biden’s involvement in the strike.

Despite the underlying success of the strike, the demands and rhetoric commonly employed by Fain throughout the strike expose that in many ways, especially for the autoworkers the UAW represents, President Biden’s economic policies are creating issues for working class Americans. The initial expectation that the strike’s success might aid Biden’s reelection campaign may not be the case.

Fein’s success in negotiations with the Big Three companies will create political problems for Biden in the near future, as the new union contract will likely lead to a significant increase in the cost of cars sold by these companies by as much as $900, according to Ford’s Chief Financial Officer. Given President Biden’s campaign centerpiece of “Bidennomics,” an economic plan rooted in lowering costs and expanding the middle class, this increase in prices forebodes difficulties in selling his economic plan to an American public which already widely disapproves of his handling of the economy. In one particular poll, fewer than 40% of Americans approved of Biden’s economic handling. Biden’s involvement in a strike which may lead to a spike in car prices will not help dispel the preexisting perception of him and Bidenonimcs as poor for the economy. Furthermore, Fein’s fulfilled demand for cost of living pay raises, in which worker pay would increase at a rate consistent with the rate of inflation, could lead to further increases in car prices in the case of rising inflation. Biden’s decision to play such an active role in the strike on the side of the union was likely informed by the fact that 67% of Americans support labor unions, but it is unlikely the same majority will support rising car prices.

Another potential reason for President Biden’s historic involvement in this strike may have been to secure the endorsement of the UAW through Shawn Fain, given that the group did endorse him in 2020 but has yet to commit to endorsing his reelection. While the union’s lack of official support may be due to the time until the general election, their indecision may also be informed by Fain’s own openly stated political views which do not align in many aspects with President Biden. Fain commonly supports politicians and political views from those furthest on the left of the political spectrum in the government. This is reflected by his statements, including “Billionaires in my opinion don’t have the right to exist,” his personal affiliation with Senator Bernie Sanders leading to his invitation to a September strike rally, and his choice to wear a shirt which says “Eat the Rich” at multiple union rallies. Because of this, Biden’s courting of Fain’s UAW endorsement is not guaranteed. When asked in September about endorsing Biden, Fain said to earn his support, he expected “actions, not words” from Biden. With the strike coming to an end, and Biden having significantly risked his own reputation in support of the strike, it is unclear if Fain is significantly satisfied yet with the President's actions.

The most notable point of division between President Biden and Fain is the future of the auto industry as a result of the increasing popularity of electric vehicles. Biden himself has been a strong advocate for the transition to electric vehicles and has taken direct action to encourage this change through laws such as the Inflation Reduction Act. Among other provisions, the Inflation Reduction Act expanded a tax credit on new electric vehicle purchases, introduced a used electric vehicle tax credit, and various other provisions encouraging electric vehicle production and purchasing in the United States. While the final contract with the Big Three companies includes some protections for UAW workers as auto companies transition to using more factories for the production of electric vehicles, the largest producers of electric vehicles, including Tesla and many foreign companies with factories in the United States, do not have unionized factories. This significantly cuts down on production costs for these companies and allows them to out compete companies with UAW workers. This discrepancy presents a potential disaster for Fain’s union, and one which Biden would take much of the blame for. Given the high costs of electric vehicle production, if Fain and the UAW are unable to succeed in their announced plans to organize the workers in electric vehicle factories, UAW workers may lose their jobs, as Big Three companies are forced to cut labor to keep up with companies with lower labor costs. 

While the end of the strike provides immediate relief for Fain and Biden, the future holds more unanswered questions. For Fain, who for the moment can hold pride in the long sought after gains made for UAW workers in this contract, there remains uncertainty regarding the transition to electric vehicles and potential factory closures as automakers adjust to both this new contract and the challenging market in the coming years. For Biden, his political gamble of leaning into his self ordained title of “the most pro-union President in American history” will force him to soon reckon with rising car prices and the difficulties his support of electric vehicles may cause for his reelection. The immediate crisis of the strike has ended, but both men must push forward to address the significant problems its implications hold.

Nicholas Fink (CC‘27) is a Staff Writer at CPR and is currently studying history. He is originally from New York.