Tentative Contract Reached; UAW Adds Strike at GM Factory

author: FutureCar Staff    

Jeep maker Stellantis has reached a tentative contract agreement with the United Auto Workers union on Saturday. If ratified by members, this agreement would leave only General Motors without a deal with the union.

Later on Saturday night, the union walked out at a GM factory in Spring Hill, Tennessee, in an attempt to increase pressure on the company to reach an agreement.

The Stellantis deal is similar to the one reached earlier in the week with Ford. The contract also includes saving jobs at a factory in Belvidere, Illinois, that Stellantis had planned to close.

GM expressed disappointment with the additional strike at the Spring Hill assembly and propulsion systems plant, stating that they have made progress in their negotiations with the union and want to reach a deal as soon as possible.

Spring Hill is GM's largest manufacturing facility in North America, employing nearly 4,000 employees and producing electric Cadillac models and crossover SUVs.

UAW President Shawn Fain confirmed the Stellantis agreement in a video appearance and mentioned that 43,000 members still need to vote on the deal.

About 14,000 UAW workers who were on strike at two Stellantis assembly plants in Michigan and Ohio, as well as several parts distribution centers across the country, were instructed to return to work. This agreement would end a six-week strike at the maker of Jeep and Ram vehicles.

The agreement includes a 25% wage increase over the next 4½ years for top assembly plant workers, with 11% coming once the deal is ratified. Workers will also receive cost-of-living pay, bringing the total raises to a compounded 33%. Top assembly plant workers at Stellantis will make over $42 per hour.

The Stellantis deal, like the Ford contract, will run through April 30, 2028.

Under the agreement, the union claims to have saved jobs in Belvidere, as well as at an engine plant in Trenton, Michigan, and a machining factory in Toledo, Ohio.

The deal also includes a commitment from Stellantis to build a new midsize truck at its factory in Belvidere, Illinois, which was previously set to close. This will result in the rehiring of 1,200 workers and the addition of 1,000 workers for a new electric vehicle battery plant.

Vice President Rich Boyer, who led the Stellantis negotiations, stated that the workforce will be doubled at the Toledo, Ohio, machining plant. The union claims to have won $19 billion worth of investment across the U.S.

The UAW stated that the Stellantis agreement offers gains worth more than four times the improvements made in the 2019 contract. It guarantees significant wage increases and improvements in base wages for top-scale assembly plant workers.

The agreement is expected to be approved by workers, given the substantial pay raises and immediate raises offered.

The UAW began targeted strikes against all three automakers in September after their contracts with the companies expired. At its peak, about 46,000 workers were on strike against all three companies, representing about one-third of the union's members.

The Ford deal set the pattern for the agreements with Stellantis and GM, with provisions for pension increases, larger raises for 401(k) plan holders, and the right to strike over factory closures.

Other union leaders have also secured pay hikes and benefits for their members through aggressive bargaining strategies.

Workers are looking forward to the ratification vote and returning to work after experiencing financial strain during the strike.

FutureCar Staff