The United Auto Workers (UAW) and Stellantis have announced a tentative contract agreement, bringing the labor union one step closer to ending a 6-week strike that has impacted Detroit’s Big 3 automakers and left thousands of employees idle. UAW President Shawn Fain expressed his satisfaction with the outcome, stating on social media, “On day 44 of our stand-up strike, I am honored to announce that our union is again victorious.”
Stellantis Chief Operating Officer Mark Stewart also confirmed the deal, expressing the company’s eagerness to welcome back its 43,000 employees and resume operations. This agreement with Stellantis follows the recent resolution between UAW and Ford, leaving only General Motors without a contract with the union.
In response to the news of the deal, UAW expanded its strike to GM’s Spring Hill, Tennessee, plant, which employs nearly 4,000 workers and produces Cadillac and GMC SUVs. This strategic move aims to exert additional pressure on GM to finalize its own agreement with UAW.
A GM spokesperson expressed disappointment with UAW’s action and emphasized their commitment to reaching a swift resolution. Furthermore, similar to the deal between UAW and Ford, the provisional agreement with Stellantis includes a 25% general wage increase over a four-and-a-half-year period, ensuring that top earners witness their wages grow to more than $42 per hour. The starting wage will also rise by over 67% to over $30 per hour during this period.
The deal also includes Stellantis reopening its Belvidere, Illinois assembly plant, which was closed in February. UAW Vice President Rich Boyer mentioned that the union’s efforts led to the restoration of thousands of jobs in Belvidere. Furthermore, Stellantis has committed to establishing a new battery plant in Belvidere, creating approximately 1,000 new job opportunities. In total, Stellantis has agreed to generate 5,000 new jobs across the United States.
Acting Labor Secretary Julie A. Su commended both Stellantis and UAW for their dedication and collaboration in reaching the agreement, acknowledging the positive impact on creating good middle-class jobs in battery manufacturing.
With this historic strike, the UAW targeted all three major automakers simultaneously for the first time. The union’s demands included a 36% wage hike over four years, annual cost-of-living adjustments, pension benefits for all employees, greater job security, and a faster path to full-time status for temporary workers. The negotiations involved tough rhetoric from UAW President Shawn Fain, who criticized automaker CEOs for prioritizing their own excessive pay packages over fair compensation for workers.
The outcome of these negotiations has resulted in significant progress for the UAW, including the 25% pay increase for Ford workers and GM’s agreement to place electric vehicle battery plants under a national contract with UAW. However, it is crucial to acknowledge that the strike has led to layoffs for thousands of employees.
For the workers who participated in the strike, payments have been made through the union’s strike fund.
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