By putting his presidential thumb on the scale, Biden might have helped tilt negotiations in favor of the UAW. At the same time, he seems to have inadvertently undermined one of his administration’s big climate policy goals.
Ford and General Motors (G.M.), two of the three automakers that reached a deal with the UAW last month to end the strike, have announced plans this week to scale back future investments in electric vehicle (E.V.) production. Both companies have cited the higher labor costs created by the new union contract as a motivating factor for cutting costs, and E.V. production lines seem to be some of the top targets—perhaps not a surprise, given lackluster E.V. sales.
[This would make me laugh out loud, except that Biden will likely get Congress to float even more subsidies to UAW-contract automakers to compensate. Let’s hope Republicans aren’t asleep at the switch when that happens. — Ed]
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