The UAW is seeking to include workers at joint venture vehicle battery plants in its contracts.
Stellantis, in a statement, said it “remains committed to working constructively and collaboratively with the UAW to negotiate a new agreement that balances the concerns of our 43,000 employees with our vision for the future.”
Fain, in a prepared statement issued by the UAW, said Biden’s remarks were appreciated.
“We agree with the president that the (Detroit 3)’s joint venture battery plants should have the same strong pay and safety standards that generations of UAW members have fought for,” Fain’s statement said. “As the president said, the UAW helped build the middle class and we are fighting for contracts that will bring prosperity back to working-class communities that have been struggling for far too long.
“The (Detroit 3) have been extraordinarily profitable for years now, making a quarter-trillion dollars in North American profits over the last decade and another $21 billion in total profits in the first half of this year. With the president’s support, we know those profits can be invested in collective bargaining agreements that lift up autoworkers, our families and our communities.”
Representatives for Ford and GM did not respond to requests for comment.
A strike at any of the automakers would hit earnings by about $400 million to $500 million per week of production, Deutsche Bank analyst Emmanuel Rosner said in a research note on Monday.
The union’s requests also carry costs due to its requested wage increases, cost-of-living adjustments and elimination of the two-tiered wage system, Rosner noted.
Deutsche Bank estimated total incremental costs to the three automakers combined would be $3.6 billion in the first year and total $23 billion in the four years of the contract.
But other cost estimates have been far higher.
The UAW’s list of contract demands — including more than 40 percent raises for members — would increase labor costs for the Detroit 3 by $45 billion to $80 billion a year and threaten their future viability, according to calculations by people familiar with the companies’ costs.
Detroit 3 also are negotiating new contracts with Canada’s Unifor union.
Automotive News contributed to this report.
