President Biden Celebrates Labor Deal to Reopen Stellantis Plant in Belvidere, Illinois
President Joe Biden celebrated a labor deal on Thursday that will reopen the Stellantis plant in Belvidere, Illinois, calling it a vindication of his decision to stand with striking union members as they demanded higher wages.
Biden, wearing a red United Auto Workers shirt, told cheering autoworkers in a community center in the northern Illinois city that “American workers are ready to work harder than anyone else. But they just need to be given a shot. A fair shot and a fair wage.”
The union members, whom Biden praised as “as tough, tough, tough as they come,” had been on strike for nearly 45 days. The strike, which hit the automakers Ford, General Motors, and Stellantis, ended in September with a tentative contract agreement.
The new contract, which must still be approved by union members, would dramatically raise pay for autoworkers, including pay increases and cost-of-living adjustments that would translate into a 33% wage gain. Top assembly plant workers would earn roughly $42 per hour.
Joe Biden said the reopening of the Stellantis plant “goes to the heart of who he is, the heart of his vision for the country and how he’s led.” He contrasted his own approach to that of former President Donald Trump, who visited a nonunion facility on his own trip to Michigan during the strike.
“I hope you guys have a memory,” he said. “Where I come from, it matters.”
The reopening of the Stellantis plant is a victory for Biden’s worker-centered economic agenda. But the success of the factory and of the tentative contract with workers will ultimately hinge on the ability of automakers to keep generating profits as they shift toward electric vehicles in a competitive market.
Many voters still feel dour about the overall economy, and there is an open question as to whether the UAW contract and signs of wages outpacing inflation can change their views. In polls, U.S. adults have consistently given Biden low marks on the economy after a burst of inflation as the pandemic began to recede.
However, Biden’s focus on workers is resonating with some disaffected blue-collar voters who found a voice in Trump. Biden argues that innovations within the auto sector such as EVs should not lead to layoffs and factory closures.
Trump, on the other hand, has said that the rise of EVs backed by the Biden administration will cause factory job losses. He has suggested that the work will migrate to China and that the United States should stick with gasoline-powered vehicles, even though the emissions worsen climate change.
Joe Biden has a slightly better record on auto industry jobs than Trump. During Trump’s presidency, the number of manufacturing jobs in the sector peaked at a little more than 1 million in early 2019 and then began to decline. There are nearly 1.1 million auto manufacturing jobs under Biden.
The EV shift does carry a risk for automakers. Sales have started to slow amid concerns about recharging and the expensive price of the vehicles, despite tax incentives designed to improve affordability.
On Thursday, Joe Biden met with UAW President Shawn Fain and Gov. J.B. Pritzker, D-Ill. The president also headlined a fundraiser for his reelection campaign later Thursday.
In conclusion, President Biden’s celebration of the labor deal to reopen the Stellantis plant in Belvidere, Illinois is a significant victory for his worker-centered economic agenda. It also reflects his commitment to standing with workers and fighting for higher wages. However, the success of the factory and of the tentative contract with workers will ultimately hinge on the ability of automakers to keep generating profits as they shift toward electric vehicles in a competitive market.
My predecessor was willing to cede the future of electric vehicles to China. He said if America invests in electric vehicles, it would drive down wages, destroy jobs, and spell the end of the American automobile industry.
Like almost everything else he said, he's wrong. pic.twitter.com/w8BtTD2RCb
— Joe Biden (@JoeBiden) November 9, 2023