The Biden administration is expecting a deal between the United Auto Workers union and automakers, and has deployed top officials to help facilitate the talks, according to Deputy Treasury Secretary Wally Adeyemo.
(Bloomberg) — The Biden administration is expecting a deal between the United Auto Workers union and automakers, and has deployed top officials to help facilitate the talks, according to Deputy Treasury Secretary Wally Adeyemo.
“What I know is that the UAW is in active conversations with the three auto companies. Our expectation is that they are going to get to a deal,” Adeyemo said on CNBC’s “Squawk Box” on Monday. “That’s where the president is.”
The UAW has threatened a strike against General Motors Co., Ford Motor Co. and Stellantis NV beginning Thursday if no agreement is reached on a new pay deal.
President Joe Biden tapped Gene Sperling, a former economic adviser to Presidents Barack Obama and Bill Clinton and a Michigan native, to act as a liaison between the automakers and the union. Julie Su, the acting secretary of Labor, is also involved, Adeyemo indicated.
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“My colleagues Gene Sperling and the acting labor secretary engaging in those conversations as appropriate,” Adeyemo said.
The deputy Treasury chief also highlighted that the big three automakers are engaged in the talks at a time when they are recording positive earnings.
“They have profits — the question now is how do they make sure that those profits are divided amongst the companies and labor,” Adeyemo said.
–With assistance from Christopher Condon.
(Updates with additional Adeyemo comment in second paragraph.)
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