President Joe Biden praised a tentative deal reached between the United Auto Workers (UAW) union and Detroit’s three largest automakers, Ford, GM, and Stellantis, calling it a boost for the industry and the broader U.S. economy. Speaking at an event on October 30, Biden emphasized the importance of worker power in building a strong economy and highlighted the third-quarter Gross Domestic Product (GDP) report, which showed accelerated economic growth of 4.9 percent, the fastest pace in nearly two years.
The main driver of the economy’s growth was personal spending, which rose by 4 percent, the largest increase since 2021. This positive economic news, according to Biden, demonstrates progress in building an economy that benefits workers, the middle class, and the entire country, including companies. The President, who is seeking a second term, has positioned himself as the most union-friendly president in history, as he believes that a thriving middle class and a strong economy benefit everyone.
However, Biden has faced challenges in convincing Americans impacted by high inflation that his policies are effective. A Bloomberg News and Morning Consult poll revealed that former President Donald Trump, the 2024 Republican front-runner, is leading Biden in several key swing states amid concerns about his handling of the economy.
The UAW’s recent six-week strike marked a historic moment in its 88-year history, as it simultaneously affected all three Detroit automakers instead of targeting one company. While each automaker negotiated individually, they closely observed each other’s actions, and the UAW used new offers from one company to pressure the others. Ford reached an agreement with the union on October 25, followed by Stellantis on October 28. Bloomberg reported on October 30 that General Motors also reached an understanding.
The strike served as a test of Biden’s support among unions, with a major focus on the transition to electric vehicles. UAW leaders and workers expressed concerns about potential job loss, wage reductions, and favoritism towards non-union companies in this shift. To demonstrate solidarity, Biden made an unprecedented visit to a UAW picket at a GM plant in suburban Detroit last month and publicly supported their demands for wage increases, increasing pressure on automakers to reach an agreement.