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      Trump, Weighing In on Auto Strike, Has a Mixed Legacy on Unions

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      The former president will be making a campaign stop in Michigan on Wednesday amid the United Automobile Workers’ strike. He has both appeased unions and sought to circumvent them.As a businessman, Donald J. Trump at first tried to circumvent labor unions, then spent decades largely appeasing them to avoid costly strikes.During his first presidential campaign, he boiled down labor issues to a grievance about other countries taking advantage of the United States.As president, he made appointments and adopted policies often more antagonistic to organized labor than those of many other Republicans.When Mr. Trump arrives in the Detroit area on Wednesday to interject himself into the United Auto Workers strike, he will bring with him a record of interactions with organized labor that, whether out of pragmatism or opportunism, has few straight lines.What may resonate the loudest with the current and former factory workers whom Mr. Trump hopes to reach is his decades-long history of reducing a host of economic and labor issues to the complaint that America’s leaders have allowed other countries to “rip off” the United States. He used that line of reasoning in announcing the Michigan trip, arguing that “dumb” government programs to promote electric vehicles would push all automobile production to China. “The all Electric Car is a disaster for both the United Auto Workers and the American Consumer,” he wrote on his Truth Social platform.He deployed the same logic in criticizing Shawn Fain, the United Auto Workers’ president, though what he thought Mr. Fain should do differently was not clear. “I think he’s not doing a good job in representing his union, because he’s not going to have a union in three years from now,” Mr. Trump said in a recent interview broadcast on NBC’s “Meet the Press.” “Those jobs are all going to be gone because all of those electric cars are going to be made in China.”In many ways, that argument is a replay of one of the greatest hits from Mr. Trump’s 2016 campaign, when he aligned himself with workers at a Carrier furnace plant in Indianapolis who faced layoffs after the company announced plans to move the operation to Mexico. At rally after rally, he said it would be easy for him to stop such departures, a message that appealed to former factory workers and those who felt at risk. In Detroit, that approach would allow him to strike a note of support to both workers and companies without choosing sides in the most consequential labor dispute in years.Members of the United Auto Workers union at a rally in Detroit last week.Cydni Elledge for The New York TimesMr. Trump’s visit will serve other political purposes as well. He has scheduled a prime-time speech at an auto parts manufacturer as a distraction from the Republican primary debate he chose not to attend, much as his interview with Tucker Carlson was scheduled to be released during the last primary debate. And in the contest to win over blue-collar voters, the appearance pits him directly against President Biden, who on Tuesday took the unusual step of appearing with Mr. Fain and speaking out in support of the union’s contract demands.Mr. Trump’s early interactions with labor unions were based on less complex concerns. As a young real-estate developer in 1980, Mr. Trump hired a nonunion crew of 200 undocumented Polish workers to demolish the Bonwit Teller department store on Fifth Avenue in Manhattan, clearing the way for what would become Trump Tower, his signature building and the first new construction he pursued on his own. The men were paid as little as $4 an hour, less than half the union wage, and worked 12-hour shifts without safety gear. Though he saved money in the short term, the long-term costs were significant. The treatment of those workers led to 15 years of litigation. Mr. Trump paid $1.375 million to settle the case, including a $500,000 payment to a union benefits fund. The terms of the settlement remained sealed until Mr. Trump became president and a judge released them over his objections.For the rest of his building career, Mr. Trump generally hired large construction companies, allowing him to complete major projects with a minimum number of full-time employees. Those companies typically handled the hiring and management of union workers. It was an era when organized crime lorded over many of the building trade unions in New York.“We had very little, if anything, to do with the unions,” said Barbara Res, who oversaw the construction of Trump Tower for Mr. Trump and worked with him for years. “That’s one of the benefits of having a construction manager. They take care of that crap.”When Mr. Trump ran casinos in Atlantic City, the owners negotiated as an association with the local hotel and casino workers union. John R. O’Donnell, who managed the Trump Plaza casino for several years starting in the late 1980s, said Mr. Trump was so terrified by the threat of lost business during a strike that he would mine his fellow association members and their lawyers for details on the owners’ strategy and then surreptitiously pass that information along to local union leaders. He said Mr. Trump’s typical efforts to reduce costs “did not apply when it came to the union,” because he was adamant that a strike “cannot happen.”“He worked against the association to help the unions, to the detriment of the rest of the city,” Mr. O’Donnell said. “He was going to sign a contract regardless.”In New York City, Mr. Trump developed a professional relationship with Peter Ward, the longtime president of the Hotel and Gaming Trades Council, which had members working in Trump-owned or -operated hotels. In 2011, Mr. Ward led his union to support Mr. Trump’s brief effort to take over operation of the Tavern on the Green restaurant in Central Park, which had been closed by a bankruptcy.“We have a long and good history with him,” Mr. Ward told The New York Post at the time of the Tavern on the Green agreement.During the transition after Mr. Trump won the 2016 election, Mr. Ward was among those on the president-elect’s official schedule for a face-to-face meeting at Trump Tower.Not all employees at Mr. Trump’s hotels and golf courses are unionized. Workers at the hotel that Mr. Trump co-owns in Las Vegas with the casino mogul Phillip Ruffin began a unionization drive in 2014. The owners pushed back against the effort, but ultimately signed a contract with the union the month after the 2016 election. In 2018, workers at the Trump National Golf Club in Bedminster, N.J., told a reporter for The New York Times that many employees there were undocumented immigrants; one worker said a manager had directed her to someone to help her obtain fraudulent records.After decades taking a counterintuitive approach to organized labor as a business owner, Mr. Trump made a sharp turn to the right once elected. Two of his choices for top Labor Department posts had been reliable antagonists of organized labor throughout their careers: Andrew Puzder, who as chief executive of a fast-food company repeatedly argued that labor regulations stifled economic growth; and Patrick Pizzella, a conservative lobbyist and government official who had spent years promoting the interests of businesses against those of unions.Mr. Puzder withdrew his nomination because of a lack of congressional support. Mr. Pizzella served as deputy secretary and acting secretary under Mr. Trump. As a lobbyist in the 1990s, he had been hired by the Northern Mariana Islands, a commonwealth of the United States where some workers earned less than $1 an hour, to ensure that Congress did not impose federal minimum wage and immigration laws there.As president, Mr. Trump signed executive orders that undid longstanding protections for two million unionized federal workers, including making it easier to fire and discipline government employees. His appointees demoted the senior civil servants who resolved most labor cases. Mr. Trump has said that if re-elected he will fire thousands of federal workers whom he considers part of a “deep state” filled with “villains.”His line of complaint about other countries taking advantage of the United States dates back to his earliest comments on national affairs. In September 1987, during the presidency of Ronald Reagan, Mr. Trump bought full-page advertisements in three major newspapers, including The Times, arguing that Japan, Saudi Arabia and other countries were “laughing at America’s politicians” because the United States paid their defense costs. “I was tired, and I think a lot of people are tired, of watching other countries ripping off the United States,” he said on CNN that night. “This is a great country. They laugh at us behind our backs. They laugh at us because of our own stupidity, and the leaders.”Nearly 30 years later, during the 2016 presidential campaign, Mr. Trump repeated almost those exact words after a video of Carrier managers announcing layoffs to employees in the Indiana plant gained wide attention. He said such moves would stop under his presidency because he would impose a 35 percent tariff on goods shipped from foreign factories that had replaced plants in the United States. “We’re going to make our products here,” he said. “Companies are taking advantage of us. And countries are abusing us. And the way you stop it is so easy.”The message resonated with voters at his rallies, as well as with Carrier employees. “I loved it,” Jennifer Shanklin-Hawkins, a worker at the company, told The Times. “I was so happy Trump noticed us.”Mr. Trump never instituted the sort of targeted tax threat he said would be so easy. He and Mike Pence, the vice president and former governor of Indiana, did help persuade Carrier to keep about 850 of those 1,400 jobs in Indiana, in exchange for $7 million in incentives from the state. The rest of the workers were laid off, and hundreds more workers at a nearby Carrier factory were also let go. Some said they ended up feeling like props for the Trump campaign.“There was still a layoff,” Ms. Shanklin-Hawkins told a reporter with The Indianapolis Star in 2020. “He lied completely.”Noam Scheiber More

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      Why Biden and Trump Are Courting Striking Autoworkers

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      The president and his leading Republican rival are heading to Michigan to address members of the U.A.W., whose political clout is growing.The political stakes grow as the U.A.W. strike drags on.Brittany Greeson for The New York TimesBiden and Trump bid for blue collar votes In an extraordinary show of support, President Biden plans to join striking autoworkers on the picket line in Michigan on Tuesday. It comes a day before Donald Trump is expected to speak to union members in Detroit instead of participating in the second Republican primary debate.The competing visits come as the two home in on battleground states ahead of next year’s election. But their appearances also reveal a political battle to become the voice of blue collar workers at a time when both candidates are struggling to win over mainstream voters and even some within their own parties.Bidenomics is a conundrum for the president. Biden says he is “the most pro-union president in American history” and has overseen one of the biggest industrial policy shifts in decades through the Inflation Reduction Act, offering billions of dollars in subsidies to create new manufacturing jobs in a push to greenify the economy.But the president is getting little credit from voters. Approval ratings for his economic management are at career lows. And the I.R.A. is somewhat troublesome for him: It includes incentives for automakers to make more electric vehicles, which labor leaders say will depend on non-union jobs and require fewer workers.The United Automobile Workers union has held back from endorsing Biden. The group was an early supporter of his economic road map but broke with other big unions. “The EV transition is at serious risk of becoming a race to the bottom,” Shawn Fain, the U.A.W. president, wrote to members in May.Trump sees an opportunity to hammer Biden and the U.A.W. Trump, whose track record as a businessman and president often backed business over labor, will speak directly to workers, aiming to project himself as a protector of jobs. He has called the federal push for electric vehicles a “catastrophe for Michigan” that would cost American jobs, benefit China and raise prices for consumers.Fain has said Trump would be a “disaster” if re-elected. But the former president’s rhetoric and policies like rewriting trade agreements have appealed to some union members.Union votes could prove decisive in 2024. Trump won Michigan in 2016, but Biden took the state by more than 150,000 votes in 2020. In crucial swing states, even wooing a relatively small portion could be crucial. “In a strike situation, they’re all going out because they’re supporting their own economic interests,” said Alexander Colvin, the dean of Cornell University’s School of Industrial and Labor Relations. “That doesn’t mean they all think the same thing politically.”HERE’S WHAT’S HAPPENING The F.C.C. is reportedly set to reinstate net neutrality rules. The regulator will revive Obama-era limits on broadband providers’ ability to unfairly interfere with internet traffic, after Democrats finally gained a majority among its commissioners, according to Bloomberg. Companies including AT&T and Comcast are likely to push back, arguing that such rules would be a big burden.All eyes are on striking actors as screenwriters prepare for a vote on their labor deal. Leaders of the Writers Guild of America are to vote on their tentative pact with studios on Tuesday, with members set to weigh in soon. But there are few signs that an agreement with the SAG-AFTRA actors’ union is close, meaning that Hollywood will remain largely shut for now. Meanwhile, SAG-AFTRA members voted to authorize a strike against video game companies.Fossil fuel use needs to fall more quickly to contain global warming, the International Energy Agency says. Adoption of cleaner energy technologies like electric vehicles and solar is growing, but the use of fossil fuels must shrink faster to avoid a climate catastrophe, the agency said in its latest report. Some industry watchers said that the I.E.A. is still too optimistic about the decline in demand for oil and coal.Senator Bob Menendez says he won’t resign. The New Jersey Democrat, accused of taking bribes, said he’d fight the corruption charges leveled by federal prosecutors. He didn’t address questions about bars of gold found on his property, but asserted that the $550,000 in cash found stuffed around his home was merely part of an emergency fund.Growth concerns hit the bond market Alarm bells are ringing for markets on both sides of the Atlantic. Investors have again sold off their sovereign bond holdings, especially Treasury notes and German bunds, pushing yields to highs last seen in 2007 just before the housing crisis and in 2011 during the European debt crisis.Growth concerns appear to be the culprit. Global trade fell in July at its fastest pace since the summer of 2020, when the coronavirus pandemic snarled global markets. According to the newest World Trade Monitor report, the decline is the latest signal that global demand for goods is deteriorating, as inflation and high interest rates remain at multi-decade highs.Jamie Dimon added fuel to the pessimistic outlook. The C.E.O. of JPMorgan Chase warned of a kind of worst-case scenario in which the Fed is forced to keep raising its benchmark lending rate to combat inflation, further blunting growth. “I am not sure if the world is prepared for 7 percent,” he said in an interview with The Times of India, referring to the federal funds rate.Fed policymakers themselves don’t see such a scenario playing out. They released a forecast last week suggesting that one more interest rate increase was in the cards this year, and possibly two cuts next year, which would keep interest rates at around 5 percent by the end of 2024. But since the Fed meeting, the futures market has been pricing in higher policy rates for longer, and that’s adding volatility to the bond market.A potential U.S. government shutdown is also unnerving investors. The prospect that lawmakers will fail to reach a deal by Saturday’s deadline to fund the government is weighing on stocks, with U.S. futures in the red this morning. On Monday, Moody’s, the ratings agency, said a shutdown could lead it to downgrade the country’s credit rating — a warning that the White House seized upon in hopes of compelling the warring Republican factions to break their impasse on spending cuts.The good news: The uncertainty has put a lid on the oil rally, with Brent crude falling below $91 a barrel this morning, a two-week low.1.5 trillion — Gallons of water used in fracking by oil and gas companies in the U.S. since 2011. That’s equivalent to the amount of tap water used by the state of Texas each year, according to a Times investigation. The boom in fracking to meet growing energy demand poses a threat to the country’s aquifers, researchers say.ChatGPT, can you take on Alexa? Hours after Amazon announced a big bet on an artificial intelligence start-up — and days after it revealed plans to make its Alexa digital assistant smarter — one of the most prominent names in the A.I. race unveiled its plan to surpass those advancements.OpenAI said its ChatGPT chatbot can now listen to users’ spoken requests and respond vocally, among other new capabilities. It’s a reminder of how fast the race to advance A.I. is moving — and how high the stakes are.Voice is a more natural way of interacting with ChatGPT, according to OpenAI executives, who also said that their chatbot will feature voices that sound more natural than those of existing digital assistants. (The Times says that the voices sound better, but still come across as a little robotic.)OpenAI is adding other features to ChatGPT, including image recognition. One example that OpenAI demonstrated: Share an image of a bicycle with the chatbot and it will instruct the user how to lower the seat.Amazon seems aware of the risks of being outpaced by rivals. Unlike Alexa or Siri, which require users to ask specific commands, the latest version of ChatGPT is capable of more conversational interactions, including follow-up questions and clarifications. Wider adoption of that chatbot could risk Amazon losing its longtime dominance in the market for personal assistants.The Alexa announcement last week, in which Amazon said that it was incorporating the large language model technology into its assistant, is meant to address that eventuality — though ChatGPT’s new capability will be available sooner.With new capabilities come worries about new dangers. OpenAI executives said that they won’t let ChatGPT identify faces, though the software will be able to talk at length about other pictures it’s asked to analyze. There’s also the risk that greater use of ChatGPT will lead to potential mishaps involving the well-known A.I. weakness of inventing facts, known as hallucinating.And Amazon, perhaps leery of the well-publicized hitches that Microsoft and Google suffered in rolling out advanced A.I. features to the wider public, is making the new Alexa features available initially only to some users in the U.S.In other A.I. news: Meet the human workers training A.I. systems. Spotify says it won’t ban A.I.-produced music, but it will work with OpenAI to clone podcasters’ voices to produce versions of their shows in other languages. And New York Magazine asks whether Sam Altman, OpenAI’s C.E.O., is the Robert Oppenheimer of the digital age.THE SPEED READ DealsAmerican Airlines appealed a federal court ruling that blocked its planned alliance with JetBlue. (Reuters)Vista Equity Partners now oversees more than $100 billion in assets, reflecting investor interest in the big tech deals that are the firm’s stock in trade. (Axios)What’s at stake as Disney and Comcast prepare to negotiate over the value of the streaming service Hulu, which they jointly own. (FT)PolicyTesla is reportedly a focus of European regulators’ inquiry into state subsidies for electric vehicles made in China. (Bloomberg)The Commerce Department has hired veterans of Wall Street firms including Goldman Sachs and KKR to help run its semiconductor funding program. (Bloomberg)Best of the restSan Francisco residents say that their city is being unfairly pilloried as a decaying, crime-ridden metropolis. (NYT)Microsoft is looking to power its A.I. and cloud data centers with small nuclear reactors. (CNBC)How companies are pulling off four-day workweeks. (WSJ)“The End of Privacy is a Taylor Swift Fan TikTok Account Armed with Facial Recognition Tech” (404 Media)We’d like your feedback! Please email thoughts and suggestions to dealbook@nytimes.com. More

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      UAW Strike: Biden to Visit Michigan to Support Autoworkers on Picket Line

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      In an extraordinary show of support for organized labor, President Biden said he would join workers in Michigan on the front lines of their strike against leading automakers.President Biden announced that he would travel to Michigan on Tuesday to “join the picket line” with members of the United Automobile Workers who are on strike against the nation’s leading automakers, in one of the most significant displays of presidential support for striking workers in decades.“Tuesday, I’ll go to Michigan to join the picket line and stand in solidarity with the men and women of U.A.W. as they fight for a fair share of the value they helped create,” Mr. Biden wrote on Friday on X, the site formerly known as Twitter.The trip is set to come a day before Mr. Biden’s leading rival in the 2024 campaign, Donald J. Trump, has planned his own speech in Michigan, and was announced hours after Shawn Fain, the union’s president, escalated pressure on the White House with a public invitation to Mr. Biden.“We invite and encourage everyone who supports our cause to join us on the picket lines, from our friends and family all the way to the president of the United States,” Mr. Fain said in a Friday morning speech streamed online.It was not immediately clear where Mr. Biden would go in Michigan. The White House had already announced plans for Mr. Biden to fly to California on Tuesday as part of a three-day trip to the West Coast. Mr. Biden made the decision on Friday, after Mr. Fain’s public invitation, according to two people familiar with the White House deliberations.Mr. Fain on Friday announced the expansion of the U.A.W.’s work stoppage from three facilities to 38 assembly plants and distribution centers in 20 states, including six — Michigan, Wisconsin, Pennsylvania, Nevada, North Carolina and Georgia — that are expected to be presidential battlegrounds in next year’s election.Michigan, the home of the American automotive industry, is home to the bulk of the facilities and striking workers.There is little to no precedent for a sitting president joining striking workers on a picket line.Seth Harris, a former top labor policy adviser for Mr. Biden, said he was not aware of any president walking a picket line before.“This president takes seriously his role as the most pro-union president in history,” Mr. Harris said. “Sometimes that means breaking precedent.”Earlier Friday, Mr. Biden’s re-election campaign posted on social media a video of Republican presidential candidates and Fox News anchors bemoaning his support for unions. The caption from Mr. Biden read: “Yes.”Mr. Fain’s invitation came a week into an expanding work stoppage by autoworkers at Ford, General Motors and Stellantis plants. The union president announced on Friday that the strike, which began last week at three plants in the Midwest, would expand to 38 more locations in 20 states across the country. He said that talks with General Motors and Stellantis had not progressed significantly, but that Ford had done more to meet the union’s demands.Mr. Biden has defended the striking autoworkers since the stoppage began last week, and the White House has dispatched Julie Su, the acting secretary of labor, and Gene Sperling, a top White House economic adviser, to seek an end to the strike.Mr. Biden has referred to himself as “the most pro-union president in American history” and has long made his alliances with and support for organized labor a central part of his political identity. But his administration’s push for a transition to electric vehicles has put him at odds with the U.A.W., because electric vehicles require fewer workers to produce.The U.A.W. has broken with other major unions in so far declining to endorse Mr. Biden’s re-election bid.Mr. Trump is skipping next week’s Republican presidential primary debate and instead delivering a speech in Michigan before current and former union workers. Mr. Trump pulled away significant portions of union workers from Democrats in his 2016 victory by denouncing international free trade agreements. In his current campaign, he has staked out a position against the federal push for more electric vehicles.Jason Miller, a senior adviser to the Trump campaign, said Mr. Biden would not be going to Michigan if Mr. Trump had not announced a trip there first. On social media, he called Mr. Biden’s visit “nothing more than a cheap photo op as he finds himself between a rock and a political hard place.”Senator Tim Scott of South Carolina — who, like the rest of the Republican presidential candidates, trails far behind Mr. Trump — sought to inject himself into the news cycle about the strike this week by suggesting that the autoworkers should be fired, a move the companies are legally prohibited from carrying out.On Thursday, the U.A.W. postured back by filing a complaint against Mr. Scott with the National Labor Relations Board (such complaints are often dismissed). On Friday, Mr. Scott called the U.A.W. “one of the most corrupt and scandal-plagued unions in America” and said the union’s contract proposal would lead to government bailouts.Mr. Fain, who appeared at a rally with Senator Bernie Sanders of Vermont when the strike began, has been critical of Mr. Trump and Republicans. More

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      Lo que hay que saber sobre la huelga contra tres fabricantes de automóviles en EE. UU.

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      El sindicato y General Motors, Ford Motor y Stellantis siguen teniendo grandes diferencias en materia de salarios.[Lee aquí, en inglés, el minuto a minuto de la huelga automotriz en EE. UU.]El sindicato United Auto Workers (UAW), que representa a alrededor de 150.000 trabajadores de plantas automotrices estadounidenses, decretó una huelga ‘limitada y dirigida’ contra tres de las mayores fabricantes de automóviles del país la madrugada del viernes cuando el sindicato y las empresas no llegaron a un acuerdo para suscribir nuevos contratos.Las tres fabricantes —General Motors, Ford Motor y Stellantis, propietaria de Chrysler, Jeep y Ram— habían dicho que podrían verse obligadas a suspender o ralentizar la producción si no era posible llegar a un acuerdo para la medianoche del jueves. El presidente del UAW, Shawn Fain, enfatizó que el jueves es la “fecha límite, no un punto de referencia”.El sindicato buscaba negociar un contrato independiente a cuatro años con cada fabricante de automóviles. El UAW nunca se ha ido a huelga en las tres empresas al mismo tiempo, sino que ha preferido hacerlo una por una. Pero Fain había dicho que, en esta ocasión, tanto él como sus colegas están dispuestos a irse a huelga en las tres empresas.¿Cuál es el punto de desacuerdo en el conflicto laboral?La remuneración es el tema principal de las negociaciones.El UAW exige un aumento salarial del 40 por ciento en un periodo de cuatro años, lo cual, según Fain, no dista del aumento en el sueldo de los directores ejecutivos de dichas empresas en los últimos cuatro años.Hasta el pasado 8 de septiembre, la postura de ambas partes era muy distinta: las empresas ofrecían un incremento en los sueldos de entre un 14 y un 16 por ciento en cuatro años. Fain calificó la oferta de “ofensiva” y señaló que el sindicato está firme en su objetivo de un aumento del 40 por ciento.¿Qué papel desempeña el cambio a los autos eléctricos en las negociaciones?La industria automotriz se encuentra en plena transición masiva a los vehículos operados con batería, por lo que GM, Ford y Stellantis están invirtiendo miles de millones de dólares en el desarrollo de nuevos modelos y la construcción de fábricas. Las empresas han dicho que esas inversiones les dificultan pagarles salarios más altos a los trabajadores. Afirman que ya de por sí se encuentran en gran desventaja competitiva con respecto a fabricantes de automóviles no sindicalizadas como Tesla, que domina el mercado de los vehículos eléctricos.Al UAW le preocupa que las empresas aprovechen la transición a los automóviles eléctricos para recortar empleos o contratar más trabajadores no sindicalizados. El sindicato busca que las fabricantes de automóviles cubran a los trabajadores de las fábricas de baterías en sus contratos nacionales con el UAW. En este momento, esos trabajadores no tienen representación sindical o bien se encuentran en negociaciones de contratos independientes. Pero las empresas argumentan que legalmente no pueden aceptar esa solicitud porque esas plantas son proyectos de coinversión.¿Qué ocurrió en la última huelga del UAW?La huelga más reciente del UAW ocurrió en 2019, y fue contra General Motors. Casi 50.000 empleados de General Motors dejaron de trabajar durante 40 días. La empresa informó que la huelga le había costado 3600 millones de dólares.La huelga concluyó después de que ambas partes llegaron a un acuerdo que le puso fin a una estructura salarial de dos niveles conforme a la cual a los empleados más nuevos se les pagaba mucho menos que a los veteranos. GM también convino en pagarles más a los trabajadores.¿Cómo afectaría a la economía una huelga contra las tres fabricantes de automóviles?Una pausa prolongada en la producción de automóviles podría producir una reacción en cadena en muchas partes de la economía estadounidense.Una huelga de 10 días podría costarle a la economía 5000 millones de dólares, según cálculos de Anderson Economic Group. Una huelga más prolongada podría comenzar a afectar los inventarios de automóviles en las distribuidoras, lo que elevaría el precio de los vehículos.La industria automotriz se encuentra en una situación más vulnerable que en 2019, la última vez que el UAW se fue a huelga. Al principio de la pandemia, la producción de automóviles se detuvo y produjo una reducción marcada en la oferta de vehículos. Los inventarios de autos nacionales se mantienen en aproximadamente una cuarta parte del nivel que tenían a finales de 2019.¿Una huelga tendrá ramificaciones políticas?Definitivamente podría tenerlas.El presidente Joe Biden se ha descrito como “el presidente más partidario de los sindicatos laborales” e intentó cimentar sus relaciones con los sindicatos laborales antes de arrancar su campaña de reelección. Pero el UAW, que por lo regular apoya a los candidatos demócratas, como lo hizo con Biden en su contienda en 2020, no ha declarado que vaya a apoyarlo en la campaña de 2024.El sindicato teme que la decisión de Biden de promover los vehículos eléctricos pueda erosionar más la cantidad de miembros de los sindicatos en la industria automotriz. Fain ha criticado al gobierno por otorgar grandes incentivos federales y préstamos para nuevas fábricas sin exigir que esas plantas empleen a trabajadores sindicalizados.El expresidente Donald Trump, que muy probablemente conseguirá la candidatura republicana, ha intentado ganarse a los miembros del UAW. Ha criticado las políticas de Biden para la industria automotriz y el clima por considerarlas negativas para los trabajadores y los consumidores.J. Edward Moreno es el becario David Carr 2023 en el Times. Más de J. Edward Moreno More

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      What to Know About the Potential Autoworkers Strike

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      The union and the carmakers remain far apart on wages.The United Auto Workers union, which represents about 150,000 workers at U.S. car plants, could strike against three of the country’s largest automakers on Friday if the union and the companies are unable to reach new contracts.The three automakers — General Motors, Ford Motor and Stellantis, which owns Chrysler, Jeep and Ram — could be forced to stop or slow production if an agreement isn’t reached by midnight on Thursday. The president of the U.A.W., Shawn Fain, said that Thursday was the “deadline, not a reference point.”The union is negotiating a separate four-year contract with each automaker. The U.A.W. has never struck against all three companies at once, preferring to target one at a time. But Mr. Fain has said he and his members are willing to strike against all three this time.What’s at issue in the labor dispute?Compensation is at the forefront of negotiations.The U.A.W. is demanding 40 percent wage increases over four years, which Mr. Fain says is in line with how much the salaries of the companies’ chief executives have increased in the past four years.As of last Friday, the two parties remained far apart, with the companies offering to raise pay by 14 to 16 percent over four years. Mr. Fain called that offer “insulting” and has said that the union is still seeking a 40 percent pay increase.What role is the switch to electric cars playing in the negotiations?The auto industry is in the middle of a sweeping transition to battery-powered vehicles, and G.M., Ford and Stellantis are spending billions of dollars to develop new models and build factories. The companies have said those investments make it harder for them to pay workers substantially higher wages. Automakers say they are already at a big competitive disadvantage compared with nonunion automakers like Tesla, which dominates the sale of electric vehicles.The U.A.W. is worried that the companies will use the switch to electric cars to cut jobs or hire more nonunion workers. The union wants the automakers to cover workers at the battery factories in their national contracts with the U.A.W. Right now those workers are either not represented by unions or are negotiating separate contracts. But the automakers say they cannot legally agree to that request because those plants are set up as joint ventures.What happened in the last U.A.W. strike?The U.A.W. most recently went on strike in 2019 against General Motors. Nearly 50,000 General Motors workers walked out for 40 days. The carmaker said that strike cost it $3.6 billion.The strike ended after the two sides reached a contract that ended a two-tier wage structure under which newer employees were paid a lot less than veteran workers. G.M. also agreed to pay workers more.How would a strike against the three automakers affect the economy?A long pause in car production could have ripple effects across many parts of the U.S. economy.A 10-day strike could cost the economy $5 billion, according to an estimate from Anderson Economic Group. A longer strike could start affecting inventories of cars at dealerships, pushing up the price of vehicles.The auto industry is in a more vulnerable place than it was in 2019, the last time the U.A.W. staged a strike. In the earlier part of the pandemic, car production came to a halt, sharply reducing the supply of vehicles. Domestic car inventories remain at about a quarter of where they were at the end of 2019.Will a strike have political ramifications?It definitely could.President Biden has called himself “the most pro-labor union president” and sought to solidify his ties with labor unions ahead of his re-election campaign. But the U.A.W., which usually endorses Democratic candidates including Mr. Biden in his 2020 run, has held off endorsing him for the 2024 race.The union fears that Mr. Biden’s decision to promote electric vehicles could further erode union membership in the auto industry. Mr. Fain has criticized the administration for awarding large federal incentives and loans for new factories without requiring those plants to employ union workers.Former President Donald J. Trump, who is most likely to secure the Republican nomination, has been seeking to win over U.A.W. members. He has criticized Mr. Biden’s auto and climate policies as bad for workers and consumers. More

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      UAW Standoff Poses Risk for Biden’s Electric Vehicle Commitment

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      A looming auto industry strike could test the president’s commitment to making electric vehicles a source of well-paying union jobs.President Biden has been highly attuned to the politics of electric vehicles, helping to enact billions in subsidies to create new manufacturing jobs and going out of his way to court the United Automobile Workers union.But as the union and the big U.S. automakers — General Motors, Ford Motor and Stellantis, which owns Chrysler, Jeep and Ram — hurtle toward a strike deadline set for Thursday night, the political challenge posed by the industry’s transition to electric cars may be only beginning.The union, under its new president, Shawn Fain, wants workers who make electric vehicle components like batteries to benefit from the better pay and labor standards that the roughly 150,000 U.A.W. members enjoy at the three automakers. Most battery plants are not unionized.The Detroit automakers counter that these workers are typically employed in joint ventures with foreign manufacturers that the U.S. automakers don’t wholly control. The companies say that even if they could raise wages for battery workers to the rate set under their national U.A.W. contract, doing so could make them uncompetitive with nonunion rivals, like Tesla.And then there is former President Donald J. Trump, who is running to unseat Mr. Biden and has said the president’s clean energy policies are costing American jobs and raising prices for consumers.White House officials say Mr. Biden will still be able to deliver on his promise of high-quality jobs and a strong domestic electric vehicle industry.The head of the United Automobile Workers, Shawn Fain, center, wants his union’s wages and labor standards to apply to nonunion workers who make electric vehicle components.Brittany Greeson for The New York Times“The president’s policies have always been geared toward ensuring not only that our electric vehicle future was made in America with American jobs,” said Gene Sperling, Mr. Biden’s liaison to the U.A.W. and the auto industry, “but that it would promote good union jobs and a just transition” for current autoworkers whose jobs are threatened.But in public at least, the president has so far spoken only in vague terms about wages. Last month, he said that the transition to electric vehicles should enable workers to “make good wages and benefits to support their families” and that when union jobs were replaced with new jobs, they should go to union members and pay a “commensurate” wage. He is encouraging the companies and the union to keep bargaining and reach an agreement, one of Mr. Biden’s economic advisers, Jared Bernstein, told reporters on Wednesday.A strike could force Mr. Biden to be more explicit and choose between his commitment to workers and the need to broker a compromise that averts a costly long-term shutdown.“Battery workers need to be paid the same amount as U.A.W. workers at the current Big Three,” said Representative Ro Khanna, a Democrat from California who has promoted government investments in new technologies.Mr. Khanna added, “It’s how we contrast with Trump: We’re for creating good-paying manufacturing jobs across the Midwest.”At the heart of the debate is whether the shift to electric vehicles, which have fewer parts and generally require less labor to assemble than gas-powered cars, will accelerate the decline of unionized work in the industry.Foreign and domestic automakers have announced tens of thousands of new U.S.-based electric vehicle and battery jobs in response to the subsidies that Mr. Biden helped enact. But most of those jobs are not unionized, and many are in the South or West, where the U.A.W. has struggled to win over autoworkers. The union has tried and failed to organize workers at Tesla’s factory in Fremont, Calif., and Southern plants owned by Volkswagen and Nissan.A Ford Lightning plant in Dearborn, Mich. The U.A.W. worries that letting battery makers pay lower wages will allow G.M., Ford and Stellantis to replace much of their current U.S. work force with cheaper labor.Brittany Greeson for The New York TimesAs a result, the union has focused its efforts on battery workers employed directly or indirectly by G.M., Ford and Stellantis. The going wage for this work tends to be far below the roughly $32 an hour that veteran U.A.W. members make under their existing contracts with three companies.Legally, employees of the three manufacturers can’t strike over the pay of battery workers employed by joint ventures. But many U.A.W. members worry that letting battery manufacturers pay far lower wages will allow G.M., Ford and Stellantis to replace much of their current U.S. work force with cheaper labor, so they are seeking a large wage increase for those workers.“What we want is for the E.V. jobs to be U.A.W. jobs under our master agreements,” said Scott Houldieson, chairperson of Unite All Workers for Democracy, a group within the union that helped propel Mr. Fain to the presidency.The union’s officials have pressed the auto companies to address their concerns about battery workers before its members vote on a new contract. They say the companies can afford to pay more because they collectively earned about $250 billion in North America over the past decade, according to union estimates.But the auto companies, while acknowledging that they have been profitable in recent years, point out that the transition to electric vehicles is very expensive. Industry executives have suggested that it is hard to know how quickly consumers will embrace electric vehicles and that companies needed flexibility to adjust.Even if labor costs were not an issue, said Corey Cantor, an electric vehicle analyst at the energy research firm BloombergNEF, it could take the Big Three several years to catch up to Tesla, which makes about 60 percent of fully electric vehicles sold in the United States.A strike could force Mr. Biden to choose between his commitment to workers and the need to avert a costly shutdown of the U.S. auto industry.Bill Pugliano/Getty ImagesData from BloombergNEF show that G.M., Ford and Stellantis together sold fewer than 100,000 battery electric vehicles in the United States last year; in 2017, Tesla alone sold 50,000. It took Tesla another five years to top half a million U.S. sales. (The Big Three also sold nearly 80,000 plug-in hybrids last year.)The three established automakers had hoped to use the transition to electric cars to bring their costs more in line with their competitors, said Sam Fiorani, vice president of global vehicle forecasting at AutoForecast Solutions, a research firm. If they can’t, he added, they will have to look for savings elsewhere.In a statement, Stellantis said its battery joint venture “intends to offer very competitive wages and benefits while making the health and safety of its work force a top priority.”Estimates shared by Ford put hourly labor costs, including benefits, for the three automakers in the mid-$60s, versus the mid-$50s for foreign automakers in the United States and the mid-$40s for Tesla.Ford’s chief executive, Jim Farley, said in a statement last month that the company’s offer to raise pay in the next contract was “significantly better” than what Tesla and foreign automakers paid U.S. workers. He added that Ford “will not make a deal that endangers our ability to invest, grow and share profits with our employees.”Mr. Biden and Democratic lawmakers had sought to offset this labor-cost disadvantage by providing an additional $4,500 subsidy for each electric vehicle assembled at a unionized U.S. plant, above other incentives available to electric cars. But the Senate removed that provision from the Inflation Reduction Act.Such setbacks have frustrated the U.A.W., an early backer of Mr. Biden’s clean energy plans. In May, the union, which normally supports Democratic presidential candidates, withheld its endorsement of Mr. Biden’s re-election.“The E.V. transition is at serious risk of becoming a race to the bottom,” Mr. Fain said in an internal memo. “We want to see national leadership have our back on this before we make any commitments.”The next month, Mr. Fain chided the Biden administration for awarding Ford a $9.2 billion loan to build three battery factories in Tennessee and Kentucky with no inducement for the jobs to be unionized.A BMW battery plant in South Carolina. The U.A.W. has struggled to unionize autoworkers in the South.Juan Diego Reyes for The New York TimesMr. Biden tapped Mr. Sperling, a Michigan native, to serve as the White House point person on issues related to the union and the auto industry around the same time. By late August, the Energy Department announced that it was making $12 billion in grants and loans available for investments in electric vehicles, with a priority on automakers that create or maintain good jobs in areas with a union presence.Mr. Sperling speaks regularly with both sides in the labor dispute, seeking to defuse misunderstandings before they escalate, and said the recent Energy Department funding reflected Mr. Biden’s commitment to jump-start the industry while creating good jobs.Complicating the picture for Mr. Biden is the growing chorus of Democratic politicians and liberal groups that have backed the autoworkers’ demands, even as they hail the president’s success in improving pay and labor standards in other green industries, like wind and solar.Nearly 30 Democratic senators signed a letter to auto executives this summer urging them to bring battery workers into the union’s national contract. Dozens of labor and environmental groups have signed a letter echoing the demand.The groups argue that the change would have only a modest impact on automakers’ profits because labor accounts for a relatively small portion of overall costs, a claim that some independent experts back.Yen Chen, principal economist of the Center for Automotive Research, a nonprofit group in Ann Arbor, Mich., said labor accounted for only about 5 percent of the cost of final assembly for a midsize domestic sedan based on an analysis the group ran 10 years ago. Mr. Chen said that figure was likely to be lower today, and lower still for battery assembly, which is highly automated.Beyond the economic case, however, Mr. Biden’s allies say allowing electric vehicles to drive down auto wages would be a catastrophic political mistake. Workers at the three companies are concentrated in Midwestern states that could decide the next presidential election — and, as a result, the fate of the transition to clean energy, said Jason Walsh, the executive director of the BlueGreen Alliance, a coalition of unions and environmental groups.“The economic effects of doing that are enormously harmful,” he said. “The political consequences would be disastrous.” More

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      United Auto Workers Hold Off on Backing Biden, for Now

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      A memo by the union’s president underscores how some of President Biden’s moves to fight climate change could weaken some of his political support.The United Auto Workers, a politically potent labor union, is planning to withhold its endorsement of President Biden in the early stages of the 2024 race, according to an internal memo from its president to members on Tuesday.The memo, written by Shawn Fain, the Detroit-based union’s president, said the leadership of the United Auto Workers had traveled to Washington last week to meet with Biden administration officials and had expressed “our concerns with the electric vehicle transition” that the president has pursued.The memo underscores how some of Mr. Biden’s boldest moves to fight climate change, which animate his liberal base, could at the same time weaken his political support among another crucial constituency. The U.A.W. has shrunk in size in recent decades, but it still counts about 400,000 active members, with a robust presence in Michigan, a critical battleground state for Democrats.In April, the Biden administration proposed the nation’s most ambitious climate regulations yet, which would ensure that two-thirds of new passenger cars are all-electric by 2032 — up from just 5.8 percent today. The rules, if enacted, could sharply lower planet-warming pollution from vehicle tailpipes, the nation’s largest source of greenhouse emissions. But they come with costs for autoworkers, because it takes fewer than half the laborers to assemble an all-electric vehicle as it does to build a gasoline-powered car.In the memo, Mr. Fain provided “talking points” for members about why the union was not immediately lining up behind Mr. Biden, writing that if companies received federal subsidies, then workers “must be compensated with top wages and benefits.”“The EV transition is at serious risk of becoming a race to the bottom,” the memo reads, referring to electric vehicles. “We want to see national leadership have our back on this before we make any commitments.”Mr. Fain won the U.A.W. presidency as an insurgent candidate this year, toppling the incumbent, Ray Curry. Mr. Fain promised a more confrontational path ahead of contract talks. In the memo, he notes that 150,000 autoworkers are fighting for a new contract with the so-called Big Three auto companies in September, writing, “We’ll stand with whoever stands with our members in that fight.”Labor support is a key part of Mr. Biden’s political coalition and his portrayal of himself as a fighter for the middle class.Within hours of Mr. Biden’s formal entry into the 2024 race, a number of top labor unions backed Mr. Biden, including the Amalgamated Transit Union, the Service Employees International Union and the International Brotherhood of Electrical Workers.“Several national unions were quick to endorse,” Mr. Fain wrote in his memo. “The United Auto Workers is not yet making an endorsement.”Mr. Biden’s campaign trumpeted his support from other labor unions in a news release. Notably, Mr. Biden’s first public appearance after announcing his re-election campaign last week was addressing a labor conference in the nation’s capital.“I’ve said many times: Wall Street didn’t build America,” he told the cheering union crowd last week. “The middle class built America, and unions built the middle class!”The United Auto Workers, which has historically endorsed Democrats and supported Mr. Biden in 2020, makes clear in the memo that it has no intent of backing the Republican front-runner, former President Donald J. Trump. Withholding a formal endorsement for now instead appears to be a bid for leverage or concessions from the administration.“Another Donald Trump presidency would be a disaster,” reads Mr. Fain’s memo, which was first reported by The Detroit News. “But our members need to see an alternative that delivers real results. We need to get our members organized behind a pro-worker, pro-climate, and pro-democracy political program that can deliver for the working class.”Mr. Biden has sought to accelerate the transition to all-electric vehicles as a centerpiece of his effort to tackle climate change. A 2021 report by the International Energy Agency found that nations would have to stop sales of new gasoline-powered cars by 2035 to avert the deadliest effects of a warming planet.To help reach that goal, Mr. Biden has pushed a fleet of policies designed to promote electric vehicles. The Biden administration’s proposed climate regulations announced in April are designed to add legal teeth to consumer incentives, compelling automakers to manufacture and sell more electric vehicles. The Environmental Protection Agency rules, however, are not yet final: They are open for public comment, and could still be weakened or otherwise changed before being completed next year.As the Biden administration prepared to unveil the new clean car rules last month, officials planned for Michael S. Regan, the head of the E.P.A., to announce the policies in Detroit, surrounded by American-made all-electric vehicles.But as auto executives and the United Auto Workers learned the details of the proposed regulations, some grew uneasy about publicly supporting it, according to two people familiar with their thinking. No one from the United Auto Workers attended the unveiling, according to the organization’s spokesman, although representatives from Ford, General Motors and Mercedes-Benz were there.And the setting was moved from Detroit to the E.P.A. headquarters in Washington. More

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      United Auto Workers Usher In New Era of Leadership

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      Shawn Fain, who ousted the incumbent president, is presiding over a convention to chart the union’s approach in contract talks this year.The United Auto Workers union has opened a new chapter in its storied history, and it may end up looking a lot like its combative past.Over the weekend, the 88-year-old union confirmed that an outsider, Shawn Fain, had prevailed in a hotly contested election for president, ousting the incumbent. An electrician whose father and grandfathers were also U.A.W. members, Mr. Fain has promised to take a tough negotiating line for increased wages in contract talks this year with the three Detroit automakers.“It is a new day for the U.A.W.,” Mr. Fain said on Monday at the start of a three-day convention, where hundreds of delegates will hammer out priorities and strategies for the contract talks that will formally open this summer.“We are here to come together for the war against our one and only true enemy — the multibillion-dollar corporations and employers who refuse to give our members their fair share,” Mr. Fain said.He opened his address by shouting, “Let’s get ready to rumble!” — drawing out the final word in the style of the famed boxing ring announcer Michael Buffer.Mr. Fain, 54, won by a razor-thin margin after prolonged vote-counting and more than two weeks of wrangling over some 1,600 challenged ballots. With the count nearly complete, Mr. Fain had 69,459 votes — 483 more than the incumbent, Ray Curry. Mr. Fain was declared the victor, and Mr. Curry conceded, when the margin exceeded the number of ballots still under challenge.The election was the first in the U.A.W.’s history in which the president and the union’s other senior executives were chosen through direct balloting of members. In the past, the leadership was chosen by delegates, a system in which favors and favoritism played a heavy role.T-shirts on display at the convention showed support for the union faction led by Mr. Fain. Rebecca Cook/ReutersThe democratic election had been mandated by a court-appointed monitor who has been overseeing the U.A.W.’s efforts to carry out anti-corruption reforms. The monitor was appointed as part of a 2021 settlement of a federal investigation that found that top union officials had embezzled more than $1.5 million from membership dues and $3.5 million from training centers, and had spent some of the money on expensive cigars, wines, liquor, golf clubs, apparel and luxury travel. More than a dozen U.A.W. officials, including two former presidents, pleaded guilty.Mr. Curry was not a target of the corruption investigation but many members saw him as linked to the establishment that had been running the union for years.Mr. Fain takes office along with several other outsiders running on his slate who were elected to senior posts by convincing margins. They won support from members who were angered over the corruption scandals and wanted an executive team that would push harder for higher wages and other demands in contract talks with General Motors, Ford Motor and Stellantis, the automaker formed through the merger of Fiat Chrysler and Peugeot S.A.Decades ago, the U.A.W. had more than 1.5 million members and the power to influence presidential elections and demand steady increases in wages and benefits. When the manufacturers resisted, it called strikes that shut down a large part of the industry. Over the years, the U.A.W.’s gains helped lift wages and living standards for a broad swath of manufacturing workers across the United States.But its influence declined as the Detroit automakers struggled. When G.M. and Chrysler were reorganized in bankruptcy court in 2009, the union made concessions on wages and benefits that it has not won back, and it has had to weather the closing of dozens of plants. It now has about 400,000 members.The contract talks come after years in which G.M., Ford and Stellantis have been reporting record results and have paid significant sums to workers in profit-sharing bonuses. In 2022, for example, G.M. made a profit of $9.9 billion and paid a bonus of $12,750 to each of its U.A.W. workers.Members want Mr. Fain to fight for wage increases to offset inflation, an end to a two-tier wage system that pays newer workers significantly less than veterans and assurances that new plants will be built in the United States rather than abroad.At the convention, the rank and file appeared to back Mr. Fain, despite his narrow margin of victory.“I’m ready to strike,” said Romaine McKinney III, an electrician at a Stellantis stamping plant in Warren, Mich. “We have to show these companies that we are ready to walk out.”Jamonty Washington, a worker at a Detroit plant where Stellantis makes Jeeps, said he started his job 12 years ago making just under $16 an hour — working next to a colleague making $31 an hour. He has worked his way up to $30 an hour, he said, but thinks the union has to fight to eliminate such differences in pay.“Equal pay for equal work,” he said. “It’s time for this union to get back to being militant — not asking but demanding.” More