Why Did Biden Weigh In?

Frank’s Essay UAW on Strike

I have been trying to wade through the rhetoric surrounding the Autoworkers strike. On the surface, the union demand of 40% raises over the next four years seems excessive. So, I decided to give Google a workout and see if I could find some logic.

The President entered the controversy the other day with the statement, “Record Profits should mean record contracts.” We now see that catchy phrase on posters carried by striking workers. Google tells us that “record profits” can mean several things. It can mean the highest total dollar amount ever, or the highest per cent of whatever the speaker wants it to be a per cent of. The automakers did in fact make more money in 2022 than they did in 2021, but whether it is a record depends on who is speaking and what point they want to make. Non-political economists explain that the increased corporate profit in 2022 was due to the microchip shortage and the surge in demand following the pandemic. Both Ford and GM reduced their dividend payout to shareholders, and have yet to reinstate it. Shareholders seem to understand and haven’t complained.

One of the early broadcasts just prior to the strike casually mentioned that UAW members working for the Big Three already get much more than their non-union counterparts at Toyota and Honda. I had trouble finding data on Google about workers’ wages. The agencies that report wages all seem to have a bias of one sort or another and do a great job of confusing the data. After sorting through the morass, I determined that Ford and GM assembly line workers took home between $50,000 and $60,000 per year, while non-union workers do the same work for about $10,000 less. Both were above the average wage for all American workers, but I still had trouble relating to something I could feel. I live on my military pension, and google tells me that a US Air Force line Chief supervising a crew of airplane mechanics makes about $52,000 annually. I can understand that comparison.

Some of the union’s other demands include equal pay for all workers regardless of time on the job, a four-day work week with five days of pay, and a voice in management decisions concerning any proposed plant closures. Workers with more time on the job are more valuable than new hires. They have had the opportunity to demonstrate their work ethic and enhance their skill levels. Hourly wage employees are just that. The idea of working 32 hours for 40 hours pay is absurd. The transition to more electric vehicle production will require some plant readjustments. That’s a fact. It is also a fact that management is hired to make those decisions in the best interests of the company’s shareholders. Good managers will listen to the voice of their labor force, but the ultimate decision remains with management.

President Biden realizes that the union controls more votes than shareholders. His statement, “Record profits should mean record contracts.” is not only inaccurate and misleading, it is absolutely politically motivated. He has taken the position that favors his chance of reelection rather than an unbiased assessment of what is good for the country. American politics at its worse.

Frank Watson is a retired Air Force Colonel and long-time resident of Eastern Washington. He has been a free-lance columnist for over 20 years.