The Biden administration highlighted the advantages of organized labor amid ongoing auto industry negotiations and their push for “Bidenomics” support.
Vice President Kamala Harris delivered a report to the president, following the UAW union’s approval of potential strikes at the country’s automakers next month if no agreement is reached with management to regain concessions made over 15 years ago. While the UAW supported Biden in 2020, they have not yet endorsed the current president, stating that their members want to see more before lending their support.
The White House remains engaged in the negotiations, actively encouraging both parties to reach a consensus and remain at the negotiating table, as stated by a senior official on Monday.
This summer has witnessed significant union activities across various sectors, spanning from Starbucks baristas and delivery drivers to manufacturers. Just last week, the Teamsters union successfully ratified a deal with UPS, securing essential negotiation objectives and preventing a potentially damaging strike for the U.S. economy. Concurrently, the Hollywood writers and actors continue their strikes against studios, grappling with the impact of streaming services on their industry and the potential disruption posed by artificial intelligence.
The US Treasury released a government report on Monday, supporting the administration’s view that labor unions bring positive impacts to both non-unionized workers and the broader economy. President Joe Biden, known as a strong advocate for organized labor, emphasizes this in his reelection campaign. Vice President Kamala Harris, who chairs the White House Task Force on Worker Organizing and Empowerment behind the report, stated that union workers strengthen the middle class and the overall economy.
Established in 2021, the pro-union task force’s objectives include empowering workers to organize and negotiate with employers, particularly in underserved communities, boosting union membership, and facilitating worker organizing nationwide. The report underscores that organized labor can raise members’ wages by 10-15%, offer better access to retirement and healthcare benefits, and improve workplace conditions and safety. It also presents data indicating that unions contribute to equality and can enhance productivity.
Treasury Secretary Janet Yellen, a labor economist, highlighted the report’s findings, countering the argument that labor unions hinder economic growth and productivity. She emphasized the administration’s commitment to strengthening the role of labor unions in the economy, marking the Treasury Department’s significant effort to explain why this is crucial.