Home » US business news • US Employment News » UAW reaches deal with Stellantis as GM strikes expand
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The United Automobile Workers union has announced a tentative contract agreement with Stellantis.
The move comes just days after a similar deal was reached with Ford Motor.
Both agreements share common terms, including a 25 percent general wage increase for UAW members.
Read More: Ford Reaches Tentative Deal With UAW With Record Pay Raises
The offer also includes the possibility for cost-of-living wage adjustments if inflation rises.
UAW President Shawn Fain said: “We have won a record-breaking contract.”
Following the deal with Stellantis, the union escalated its strike against General Motors.
The union urged employees to stop work at GM's Spring Hill, Tennessee plant.
The factory manufactures sport utility vehicles for GM's Cadillac and GMC divisions.
Read More: UAW Extends Strike To Key General Motors Plant In Texas
Under Stellantis’s deal, the union has gained the right to strike if the firm closes any plant or fails to fulfill its investment promises.
The agreement stipulates that Stellantis will reopen a plant in Belvidere, Illinois, to produce a midsize pickup truck and rehire workers for two production shifts.
It also guarantees the continuation of an engine plant in Trenton, Michigan, and the expansion of a machining plant in Toledo, Ohio.
The expansion would create up to 5,000 new UAW jobs.
While Stellantis workers are set to return to their jobs, the agreement still needs approval from a union council overseeing negotiations with the company.
Read More: Ford Executive Chair Pleads To End The UAW Strike
It also requires a subsequent ratification by UAW members.
General Motors remains the only automaker among the Detroit Three yet to reach an agreement with the UAW.
These new contracts come when Detroit automakers are increasing their focus on electric vehicle production.
It leads to higher labor costs while competing with non-unionized global competitors.
The strike initiated by the UAW began after the contracts with the three major automakers expired on September 15.
It led to work stoppages at various factories and spare parts warehouses nationwide.
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The pattern bargaining approach, consistent with previous contracts, has been used for these negotiations.
Like Ford's, the proposed agreement with Stellantis would elevate the top UAW wage from $32 to over $40 per hour over four and a half years.
It could allow employees working 40 hours a week to earn around $84,000 annually.
Stellantis, General Motors, and Ford initiated negotiations with the UAW in July, focusing on controlling labor cost increases.
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They already face higher labor expenses compared to non-unionized automakers operating in the US, such as Tesla, Toyota, and Honda.
These auto majors are simultaneously investing significant sums in electric vehicle development, battery plant construction, and factory retooling.
Stellantis has seen unexpectedly strong profits in its North American business.
It positions the firm ahead of GM regarding profitability despite GM being the largest US automaker by sales.
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