Autoworkers at Stellantis Reach Tentative Contract Deal Following Ford's Model
ICARO Media Group
In an effort to end a six-week strike, Jeep maker Stellantis has successfully reached a tentative contract agreement with the United Auto Workers (UAW) union, following a template set earlier by Ford. The deal, which still requires member ratification, brings Stellantis in line with other automakers, leaving only General Motors without a contract with the union.
The agreement, if ratified, will bring relief to over 14,000 workers at Stellantis assembly plants in Michigan and Ohio, as well as parts warehouses across the nation. Similar to Ford, the strikers at Stellantis are expected to dismantle their picket lines and return to work in the coming days, pending the votes of approximately 43,000 union members.
Sources close to the negotiations, who spoke on condition of anonymity, stated that many of the main points from Ford's deal will carry over to Stellantis. The Ford pact entails a 25 percent overall wage increase over the next 4 1/2 years for top assembly plant workers, with an immediate 11 percent increase upon ratification. Additionally, workers will receive cost-of-living pay, potentially raising the overall raises to over 30 percent, with top assembly plant workers earning more than $40 per hour. In comparison, top-scale workers at Stellantis currently earn around $31 per hour.
The Stellantis contract agreement, like its Ford counterpart, will run until April 30, 2028. Notably, the deal includes plans for a new vehicle to be produced at the idle factory in Belvidere, Illinois, which was originally slated for closure.
Bruce Baumhower, the president of the local union at a large Stellantis Jeep factory in Toledo, Ohio, expressed confidence that workers will approve the deal due to the substantial pay raises and an immediate higher wage. While some union members had initially voiced dissatisfaction over UAW President Shawn Fain's promised 40 percent raises to match corporate CEOs, Baumhower clarified that it was merely Fain's starting point in negotiations.
Meanwhile, negotiations with General Motors were taking place in an attempt to reach a similar agreement. As of now, over 14,000 GM workers remain on strike at factories in Texas, Michigan, and Missouri.
The UAW began targeted strikes against the three automakers on September 15 after their contracts expired. Strikes initially began with one assembly plant from each company and subsequently expanded, impacting a total of 46,000 workers at the peak. The union's aggressive bargaining strategies not only secured pay increases and benefits for their members, but also granted the right to strike over company plans to close factories.
If ratified, the Stellantis contract deal will mark a significant step forward in resolving the labor disputes within the automotive industry, bringing stability to thousands of workers and addressing their demands for fair compensation.