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

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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

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