Tentative Contract Agreement Reached Between Stellantis and United Auto Workers, Mirroring Ford’s Model

Stellantis, the manufacturer of Jeep, has entered into a provisional contract deal with the United Auto Workers (UAW) union, closely following a framework previously established by Ford, according to individuals familiar with the negotiation process. These sources requested anonymity as they are not permitted to disclose details of the discussions publicly.

With this tentative agreement, General Motors remains the sole automaker yet to secure a contract with the union. The pact is poised to terminate a six-week-long strike involving over 14,000 Stellantis workers at assembly facilities in Michigan and Ohio, as well as parts distribution centers nationwide.

Similar to their counterparts at Ford, striking workers at Stellantis are anticipated to dismantle their picket lines and resume their duties in the forthcoming days, prior to a vote by 43,000 union members to ratify the agreement.

Substantial aspects of Ford’s contract are expected to be replicated in the Stellantis agreement. The Ford accord stipulates a 25% general wage increase for top-tier assembly plant workers over the next four and a half years, with an immediate 11% hike upon ratification. Additional cost-of-living adjustments would elevate these increases to beyond 30%, thereby enabling top assembly plant workers to earn in excess of $40 per hour. Currently, top-scale workers at Stellantis earn approximately $31 per hour.

The Stellantis contract, like the Ford contract, is projected to remain in effect until April 30, 2028.

Notably, the agreement includes provisions for a new vehicle to be produced at a previously shuttered facility in Belvidere, Illinois, which the company had intended to close.

Bruce Baumhower, the local union president at a significant Stellantis Jeep factory in Toledo, Ohio, that has been on strike since September, anticipates that workers will endorse the contract, given the substantial pay increases, including an immediate significant raise.

“An 11% increase is directly stipulated in the agreement,” he stated, describing the deal as “historic.”

Some union members had expressed dissatisfaction with UAW President Shawn Fain’s initial proposal of 40% wage increases, which was intended to match executive compensations. However, Baumhower noted that opening negotiations with a high figure is a standard tactic.

Discussions with General Motors were ongoing as of Saturday, aiming to finalize a similar contract. Over 14,000 GM workers continue to strike at plants in Texas, Michigan, and Missouri.

The UAW initiated targeted strikes against Ford, General Motors, and Stellantis on September 15 following the expiration of existing contracts. Strike activities expanded on September 22, incorporating 38 additional GM and Stellantis parts warehouses.

The union entered intense negotiations with Stellantis the day subsequent to the Ford agreement announcement and concluded the tentative contract on Saturday.

Under Ford’s agreement, employees with pensions are set to see modest increases upon retirement, while those hired post-2007 with 401(k) plans are expected to receive substantial hikes. For the first time, the union will possess the right to strike over any company plans to shut down plants. Temporary workers are also slated for significant wage hikes, and the period for new hires to reach top pay has been shortened to three years.

In recent months, other labor unions adopting aggressive bargaining approaches have also succeeded in securing wage and benefit enhancements for their membership.

AP Business Writer Haleluya Hadero contributed to this report from Jersey City, New Jersey.

Frequently Asked Questions (FAQs) about Stellantis-United Auto Workers Contract Agreement

More about Stellantis-United Auto Workers Contract Agreement

• Stellantis Official Website
• United Auto Workers Official Website
• Ford’s Contract with UAW
• General Motors Labor Relations
• Labor Strikes in the Automotive Industry
• Previous UAW Agreements
• History of U.S. Labor Strikes
• U.S. Bureau of Labor Statistics on Wage Increases
• Understanding Labor Union Negotiation Tactics