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Stellantis offers 14.5 percent pay raise to UAW to avert possible strike

By Nithya Bose in US business news, posted September 11, 2023

Stellantis has offered a substantial four-year wage increase to most of its 43,000 hourly workers represented by United Auto Workers.

It amounts to a 14.5 percent pay hike over the proposed deal's term.

Additionally, newer or in-progression staff would receive a remarkable 27 percent boost in their starting wages.

They’ll also get a quicker advancement timeline, reduced from eight years to six years compared to the current agreement.

Stellantis's offer comes amid the looming threat of a costly strike.

The contracts between the UAW and the three major Detroit automakers expire at 11:59 pm on Thursday, September 14.

Union leaders have issued strike warnings if an agreement is not reached by the deadline.

It’s an unprecedented move in the history of the UAW against all three automakers simultaneously.

Stellantis's proposal includes a $6,000 one-time "inflation protection payment" for the deal's first year.

It also offers an additional $4,500 in cumulative payments over three years.

Furthermore, the offer designates Juneteenth as a paid holiday for workers under the deal.

Mark Stewart, COO of Stellantis's North America unit, said: “This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the U.S.

“It also protects the Company’s future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles.”

UAW Vice President Rich Boyer said negotiations are ongoing and will continue in the hopes of reaching an agreement before the deadline.

He added that if no agreement is reached, the union will take appropriate action.

Stellantis's proposed wage increase surpasses those presented by General Motors and Ford Motor, which offered raises of 10 percent and nine percent, respectively.

But Stellantis’s proposal still falls short of the UAW's demands.

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The union's demands include a 40 percent hourly pay increase, a 32-hour workweek, and the reinstatement of traditional-style pension plans, among other provisions.

Only about 30 percent of Stellantis's UAW-represented workers, specifically those hired before October 2007, have pension plans.

UAW President Shawn Fain dismissed the offers from both GM and Ford as “insufficient.”

He called GM's offer “an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers.”

Last month, UAW members overwhelmingly granted union leaders the authority to call strikes if warranted.

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