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Tentative Contract Deal Reached Between Stellantis and UAW Amid Expanded Strikes at GM’s Tennessee Plant

by Gabriel Martinez
10 comments
Stellantis-UAW Contract Agreement

Stellantis, the manufacturer of Jeep, entered a provisional contract accord with the United Auto Workers (UAW) union this past Saturday. The event coincided with the UAW’s intensified strike actions against General Motors (GM), including a newly initiated walkout at a GM facility in Spring Hill, Tennessee.

While Stellantis and Ford have reached agreements with the union, GM remains the sole major automaker without a finalized contract. The latest strike in Tennessee aims to increase pressure on GM to finalize a contractual agreement with the union. The tentative deal struck with Stellantis parallels a similar one arranged earlier in the week with Ford. According to the UAW, the Stellantis contract will also preserve jobs at a plant in Belvidere, Illinois, originally slated for closure.

Expressing dissatisfaction with the escalation of strikes, GM stated that it has been negotiating in good faith with the union and seeks a swift resolution to the contract dispute. The Spring Hill facility is the largest GM manufacturing plant in North America, boasting approximately 4,000 employees and covering 11 million square feet.

UAW President Shawn Fain confirmed details of the Stellantis deal in a video conference Saturday evening. He mentioned that ratification of the deal is pending, as 43,000 union members employed by the company are yet to cast their votes.

The provisional contract ended six-week-long strikes involving around 14,000 UAW members employed at Stellantis facilities in Michigan and Ohio, as well as at various parts distribution centers nationwide. Terms of the agreement stipulate a 25% general wage increase over the subsequent four-and-a-half years for top assembly plant employees, contingent upon the contract’s ratification.

Similar to the Ford agreement, the Stellantis contract is slated to remain effective until April 30, 2028. It also secures jobs at an engine facility in Trenton, Michigan, and a machining plant in Toledo, Ohio.

President Fain underscored the significance of the agreement, stating, “We have achieved the seemingly unattainable by reversing the closure of an assembly plant and generating job growth.”

The deal further commits Stellantis to develop a new midsize truck at its Belvidere plant, thereby retaining about 1,200 jobs and adding an additional 1,000 jobs for a new electric vehicle battery plant.

The union has successfully negotiated $19 billion in investment across the United States, thereby transforming Stellantis’s initial proposal to cut 5,000 U.S. jobs into a plan to add the same number by the contract’s end. The new agreement, according to the UAW, offers four times the benefits compared to their 2019 contract and will also see significant increases in starting wages for new hires and temporary workers.

While some union members had expressed dissatisfaction with initial promises of higher raises, the leadership insists that the finalized deal will likely find approval due to its considerable improvements in pay and benefits.

With strikes currently involving about 18,000 GM workers across multiple states, the UAW remains steadfast in its concerted action against major automakers, following the expiration of previous contracts. The Ford deal has set a precedent, which includes modest pension increases for retiring workers and significantly larger raises for those under 401(k) plans.

Contributions to this report were made by AP Business Writer Haleluya Hadero from Jersey City, New Jersey, and AP Staff Writer Corey Williams from Sterling Heights, Michigan.

Frequently Asked Questions (FAQs) about Stellantis-UAW Contract Agreement

What is the core subject of the article?

The article primarily focuses on the tentative contract agreement reached between Stellantis and the United Auto Workers (UAW) union. The agreement comes amid an intensification of strikes against General Motors (GM), particularly with the initiation of a new strike at GM’s Spring Hill, Tennessee facility.

Who are the primary stakeholders involved?

The primary stakeholders are Stellantis, the United Auto Workers (UAW) union, and General Motors (GM). The article also mentions Ford, as the Stellantis agreement closely mirrors a recent contract made with Ford.

What are the key terms of the Stellantis-UAW agreement?

The tentative Stellantis-UAW agreement includes a 25% general wage increase over the next 4 1/2 years for top assembly plant workers. It also safeguards jobs at facilities that were initially slated for closure and promises significant investment in the United States, including job creation.

What is the status of GM in these negotiations?

GM remains the only major automaker without a finalized contract with the UAW. The company expressed disappointment over the escalated strikes but maintains that it has been bargaining in good faith.

How many workers are currently on strike at GM?

About 18,000 workers at GM are currently on strike at factories in Texas, Michigan, Missouri, and Tennessee.

How does the Stellantis deal compare with the Ford agreement?

Both the Stellantis and Ford deals are similar in structure and terms. They include general wage increases, job security clauses, and commitments to U.S. investment. Both agreements are also intended to run through April 30, 2028.

What are the future steps for the Stellantis-UAW agreement?

The next step is the ratification of the agreement by the UAW members. Around 43,000 union members employed by Stellantis are yet to vote on the deal. If ratified, it would end the six-week-long strike involving 14,000 UAW members.

Are there any criticisms or points of contention regarding the deal?

Some union members initially expressed dissatisfaction with the promises of high raises. However, union leadership anticipates that the final deal will likely gain approval due to its substantial improvements in pay and benefits.

More about Stellantis-UAW Contract Agreement

  • Stellantis Corporate Homepage
  • United Auto Workers (UAW) Official Website
  • General Motors Labor Relations Updates
  • Ford and UAW Contract Details
  • Labor Strikes in the Automotive Industry: Historical Context
  • Wage Increases in Union Contracts: A Comparative Analysis
  • U.S. Labor Law and Union Strikes: An Overview

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10 comments

Steve K. October 29, 2023 - 1:58 am

Finally some job security in Belvidere and Trenton. Those folks needed a win.

Reply
Sarah P. October 29, 2023 - 4:05 am

So Stellantis is safe for now, what’s the deal with GM. they need to get it sorted, fast.

Reply
Amy L. October 29, 2023 - 4:30 am

Not surprising that union members are divided. Big promises make for big disappointments if things dont go well.

Reply
Chris M. October 29, 2023 - 5:20 am

I wonder how this will impact the supply chain. Strikes must’ve caused some sort of backlog.

Reply
Tim Q. October 29, 2023 - 6:18 am

Interesting to see how closely this follows the Ford deal. Pattern bargaining?

Reply
Jen D. October 29, 2023 - 9:11 am

Unions really have some pull, turning a 5000 job cut into a 5000 job addition? thats something.

Reply
Lisa H. October 29, 2023 - 9:47 am

25% wage increase sounds good on paper but what about inflation, that’s the real kicker.

Reply
Ron S. October 29, 2023 - 12:17 pm

the article’s good but wanna know more details bout how this affects the electric vehicle market. they talkin bout new EV battery plants and stuff.

Reply
Mike J. October 29, 2023 - 2:04 pm

Wow, Stellantis and UAW finally getting their act together. About time, GM you watching?

Reply
Nathan Z. October 29, 2023 - 11:48 pm

It’s a tentative deal people, lets not get ahead of ourselves. Ratification’s the next big hurdle.

Reply

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