By Nandita Bose and David Shepardson
WASHINGTON (Reuters) — U.S. President Joe Biden's strategy of backing politically crucial unions while avoiding strikes that cripple the economy has hit a bump in Detroit.
During a summer of labor unrest, Biden has touted his pro-labor policies by speaking out for unions, while his administration behind the scenes tries to smooth the way for deals with employers to avoid costly walkouts, union leaders and administration officials said.
But in a reminder of how hard it is to appease energized workers while tamping down on price hikes that cause inflation, Biden and auto workers union UAW — the only major union not to endorse his 2024 presidential run — are at loggerheads.
Biden's Labor Day prediction that the union would not strike against Detroit's automakers ahead of a Sept. 14 contract deadline was soundly rejected by UAW President Shawn Fain.
«He must know something we don't know,» said Fain in response, adding that he was «shocked» by the comment. «Maybe the companies plan on walking in and giving us our demands on the night before. I don't know, but he's on the inside on something I don't know about.»
Labor unions like the UAW — which represents 146,000 workers at General Motors (NYSE:GM), Ford (NYSE:F) and Stellantis NV (NYSE:STLA)'s North American unit who are demanding cost of living increases and pay that matches company profits — are key to Biden's game plan for winning reelection in 2024.
He needs their support to win key states like Pennsylvania and Michigan again, which stand to bear the brunt of any major strikes against carmakers.
A UAW strike that shuts Detroit's Big Three manufacturers could cost carmakers, suppliers and workers over $5 billion, a study by the
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