Detroit, MI - Jeep manufacturer Stellantis has announced a tentative contract agreement with the United Auto Workers (UAW) union that closely follows the template set by Ford, signaling another triumph for the union. The UAW president, Shawn Fain, hailed the agreement as a "major victory" in a video released on X, formerly known as Twitter. With this development, only General Motors remains without a contract with the union. If ratified, the deal could bring an end to a six-week strike impacting over 14,000 Stellantis workers across assembly plants in Michigan and Ohio, as well as parts warehouses nationwide.

Similar to the agreement reached at Ford, the Stellantis contract includes substantial wage increases for top assembly plant workers. Over the next 4 1/2 years, these workers will receive a 25% general wage increase, with 11% coming immediately upon ratification. Additionally, the deal includes cost-of-living pay adjustments, pushing the raises to over 30%. This would result in top assembly plant workers at Stellantis earning more than $40 per hour, surpassing the current rate of around $31 per hour.

The tentative agreement, which aligns with the Ford contract, is set to run through April 30, 2028. Furthermore, the deal entails the rehiring of 1,200 workers at Stellantis' factory in Belvidere, Illinois, which had faced the possibility of closure. This move aims to revive the facility and create 1,000 new jobs for a battery plant, demonstrating Stellantis' commitment to the electric vehicle market.

Congressman Bill Foster, representing Belvidere in Congress, revealed that there are indications of electric vehicle production taking place at the revived site. Foster iterated that he has been collaborating with Illinois Governor J.B. Pritzker's office, as well as other state and local officials, to facilitate the reopening of the factory. An incentive package from the state government may be offered to cement the deal.

Bruce Baumhower, president of the local union at a prominent Stellantis Jeep factory in Toledo, Ohio, expressed confidence in the workers' decision to approve the agreement based on the substantial pay increases. He described the 11% immediate raise as a historic achievement. Some members had voiced concerns about UAW President Shawn Fain's initial promise of 40% raises to match CEO compensation, but Baumhower clarified that it was an expected starting point in negotiations.

Workers like Jermaine Antwine and DeSean McKinley were elated upon hearing news of the tentative deal. Antwine, who has spent 24 years with Stellantis, believed that reaching a tentative agreement is a positive development. McKinley echoed this sentiment, expressing hopefulness about the undisclosed details and the potential benefits it may bring to UAW workers.

Stellantis engaged in intensive negotiations with the UAW after the Ford contract was announced on Thursday. Talks were also in progress with General Motors on Saturday, with an aim to achieve a similar agreement. Currently, over 14,000 GM workers continue to strike at factories in Texas, Michigan, and Missouri.

The UAW initiated targeted strikes against the "Detroit Three" automakers - Ford, Stellantis, and General Motors - on September 15, following expiration of existing contracts. At its peak, around 46,000 workers participated in the strikes, which also resulted in temporary layoffs due to parts shortages within the manufacturing systems of these automakers.

The Ford deal, which featured various benefits for workers including increased retirement benefits and shortened pay scale progression, set a precedent for subsequent negotiations. Other unions, such as the Hollywood writers and the Teamsters, have also witnessed success in securing improved compensation and benefits for their members through strategic bargaining and, at times, the threat of strikes.

As Stellantis workers eagerly anticipate a ratification vote on the deal, the prospect of returning to work provides much-needed relief. The agreement, if approved, promises to bring financial stability and support for workers and their families, enabling them to better prepare for the future.