Biden is urging automakers and the UAW to strike a deal as the deadline approaches

The president also suggested a word of caution for the UAW as it puts big demands for wage increases on the table, saying the American auto industry needs to “compete successfully both domestically and globally.”

Biden crafted his statement as particularly vital amid a broad industry retooling of electric vehicle production.

He said, “The middle class built America, and the unions built the middle class.” “The need to transition to a clean energy economy should provide a win-win opportunity for auto companies and unionized workers.”

Auto workers are calling for a 40 percent increase as contract talks heat up

Biden’s intervention comes as the UAW’s new leadership leads an aggressive campaign for better wages and benefits, with one month left before the current contract expires on September 14.

The auto sector is vital to American manufacturing, making up about 3 percent of the gross domestic product. The UAW’s 150,000 members produce nearly half of the light vehicles manufactured in the United States, according to GlobalData.

With positive indicators helping to boost the attitudes of economists and consumers about the economy, management is keen to avoid a strike that could cripple such a vital part of the manufacturing sector.

Biden’s statement also comes after the UAW took the unusual step of withholding its endorsement for the president’s re-election, saying in May that it wanted to see strong support from the administration before it would commit to endorsement. The move marked a rare moment of disagreement between a president and a labor movement that has long seen each other as allies.

“As the Big Three auto companies and the United Auto Workers come together — one month before their contract expires — to negotiate a new agreement, I want to be clear about where I stand. I am asking all parties to work together to find a fair deal,” Biden said Monday.

The newly elected president of the UAW, Shawn Fain, has ramped up union demands after what he calls many years of complacency and concessions by union leadership. The automakers have suggested that they cannot continue to compete against Tesla and other non-union workplaces if they agree to what the union requires.

General Motors, Ford and the Auto Workers union did not provide immediate comment on Biden’s statement. Stellantis, the parent company of Chrysler, Jeep, Dodge and other brands, said it aims for an agreement that “balances the interests of our 43,000 employees with our vision for the future — a deal that better positions the company for the challenges of the US market and secures the future for all of our employees and their families.” And our company.