UAW holds off on endorsing Biden for 2nd term citing EV policies

United Auto Workers (UAW) President Shawn Fain said in a letter to members seen by Reuters Wednesday that the Detroit-based union has yet to endorse President Joe Biden for a second term, citing concerns about electric vehicle policies.

“The federal government is pouring billions into the electric vehicle transition, with no strings attached and no commitment to workers. The EV transition is at serious risk of becoming a race to the bottom. We want to see national leadership have our back on this before we make any commitments,” Fain said.

Fain met with White House Chief of Staff Jeff Zients and lawmakers last week during a trip to Washington. Fain and U.S. Senator Bernie Sanders on Thursday criticized a General Motors Company (NYSE:) joint venture battery plant for paying workers much less than assembly plant employees even though it benefits from hefty U.S. government tax credits.

Workers at the Warren, Ohio, joint venture Ultium Cells plant near Lordstown start at $16.50 an hour rising to $20 an hour after seven years while union workers at a nearby Ohio GM assembly plant that closed in 2019 made $32 an hour or more.

“The situation at Lordstown, and the current state of the EV transition, is unacceptable. We expect action from the people in power to make it right,” Fain said.

Fain said the Ultium plant at full production will receive more than $1.2 billion a year in U.S. battery production tax credits.

Fain noted in his letter that UAW will enter contract talks on behalf of 150,000 workers at General Motors, Ford Motor Company (NYSE:) and Stellantis NV (NYSE:). The Detroit Three “are making record profits while workers get left behind. We’ll stand with whoever stands with our members in that fight.” Fain said.

Fain said the union will be “ready to talk politics once we secure a future for this industry and the workers who make it run.” He said “another Donald Trump presidency would be a disaster. But our members need to see an alternative that delivers real results.”

Shares of F are up 0.64%, while GM and STLA are down 1.01% and 2.14% in afternoon trading on Wednesday.

By Michael Elkins | [email protected]