President Biden considering emergency aid to suppliers who could be hit hard by UAW strike

WASHINGTON – With the nation’s auto workers threatening to walk off the job at midnight Thursday, the Biden administration is preparing to offer emergency economic aid to auto suppliers to protect them from any long-term damage in the event of a prolonged strike, according to published reports.

The Washington Post, citing anonymous sources aware of internal conversations, said Biden aides are worried that a protracted strike could wipe out thousands of suppliers that depend on businesses from three key automakers, Ford, General Motors and Stellantis, formerly Fiat Chrysler.

The paper said it was not clear what aid might be offered, but that one option would be for the Labor Department to provide grants to help workers at firms affected by the strike. Another could be for the Small Business Administration to provide favorable loans to these firms.

Reuters also reported that an emergency aid package was under consideration.

The White House and the United Auto Workers declined to comment.

The UAW, which represents around 146,000 workers, and Detroit’s Big Three automakers have been unable to reach an agreement on a new contract, raising the possibility of the first simultaneous strike against the three car manufacturers in the union's 80-year history.

The UAW is demanding an immediate 20% raise for workers, followed by another four raises at 5% each. Altogether, hourly pay would increase by 46% spanning the four-year contract. Workers are also asking for a shift back to pensions, reinstated cost-of-living adjustments, a 32-hour workweek and elimination of compensation tiers, among other things.

The two sides have until 11:59 p.m. Eastern on Thursday before the contract expires. While it’s possible that all UAW members could walk off the job, the union has said it will begin by striking at a limited number of plants.

A strike could deal a serious blow to the U.S. economy, which is still feeling the strains from the coronavirus pandemic. An analysis by the Anderson Economic Group consulting firm suggested a 10-day strike could result in a total economic loss of more than $5 billion.

A strike also could test President Joe Biden’s claim that he is the most pro-union president in history.

The White House would not say whether Biden would intervene in the event of a strike but stressed that he has encouraged the parties to stay at the table and work around the clock to get an agreement.

“The president believes in collective bargaining, has encouraged sides to continue to have that conversation, to continue to be at the table,” White House press secretary Karine Jean-Pierre told reporters Wednesday. “And that’s what the president is going to continue to do.”

This article originally appeared on Louisville Courier Journal: UAW, Ford news: President Biden may aid suppliers if strike happens