Stellantis, the parent company of Jeep, has reportedly reached a tentative contract agreement with the United Auto Workers (UAW) union, potentially putting an end to the strikes that have been affecting production for the past six weeks. The deal, which still needs to be approved by union members, follows a template set by Ford earlier this week. If ratified by the workers, the agreement could bring an end to the strike by over 14,000 employees at Stellantis assembly plants in Michigan and Ohio, as well as parts warehouses across the country.
According to sources familiar with the negotiations, the main points of the agreement at Ford will carry over to Stellantis. This includes a wage increase of 25% over the next 4 1/2 years for top assembly plant workers, with 11% of the increase coming once the deal is ratified. The deal also includes cost-of-living pay, which could bring the total raises to over 30%, with top assembly plant workers making more than $40 per hour. Currently, top-scale workers at Stellantis make around $31 per hour. Like the Ford contract, the agreement with Stellantis will be valid until April 30, 2028.
Furthermore, the agreement includes the production of a new vehicle at a factory in Belvidere, Illinois, which was previously scheduled to be closed. The president of the local union at a large Stellantis Jeep factory in Toledo, Ohio, expressed optimism about the deal, pointing to the significant pay raises and immediate raise of 11% as reasons why workers may vote in favor of it.
The strike against Stellantis has been part of a broader wave of strikes by the UAW against automakers, with Ford having reached a similar agreement earlier. Talks with General Motors (GM) are currently taking place in an effort to resolve the ongoing strike by more than 14,000 GM workers at factories in Texas, Michigan, and Missouri.
Overall, the agreements reached between the UAW and automakers reflect a trend of pay hikes and other benefits being secured for union members, highlighting the effectiveness of aggressive bargaining strategies. These developments come after successful strikes by other unions in different industries, such as the Hollywood writers’ strike and the Teamsters’ negotiations with UPS.
With the potential ratification of the agreements at Stellantis and Ford, the auto industry can hope for a return to normalcy and the resumption of production at affected plants. However, the outcome of the ongoing negotiations with GM will determine the full extent of the impact on the industry as a whole.
