The maker of Jeep Wranglers and Ram trucks, Stellantis NV, reached a tentative agreement with the United Auto Workers to end a 44-day strike, days after Ford Motor Company reached a deal with the union.
The tentative agreement, which must still be approved by local union leaders and ratified by Stellantis’ 43,000 members, calls for a 25% hourly pay hike plus cost-of-living allowances over the four-year contract:
The agreement grants 25% in base wage increases through April 2028, and will cumulatively raise the top wage by 33% compounded with estimated COLA to over $42 an hour. The starting wage will increase by 67% compounded with estimated COLA, to over $30 an hour. The lowest-paid workers at Stellantis, temporary workers, will see a raise of more than 165% over the life of the agreement. Some workers at Mopar will receive an immediate 76% increase upon ratification. –UAW statement
“Once again, we have achieved what just weeks ago we were told was impossible,” said UAW boss Shawn Fain.
Fain continued, “At Stellantis in particular, we have not only secured a record contract, we have begun to turn the tide in the war on the American working class. Going into these negotiations, the company wanted to cut 5,000 jobs across Stellantis. Our Stand Up Strike changed that equation. Not only did we not lose those 5,000 jobs, we turned it all the way around. By the end of this agreement, Stellantis will be adding 5,000 jobs. We truly are saving the American dream.”
We have a tentative agreement at Stellantis. #StandUpUAW pic.twitter.com/NsVL6w77WN
— UAW (@UAW) October 28, 2023
Two of Detroit’s Big Three automakers have reached a tentative agreement with the union. Ford first reached a deal last Wednesday as the last holdout of the automakers is General Motors.
However, UAW expanded strikes on GM’s assembly plant in Spring Hill, Tennessee. Fain said, “We are disappointed by GM’s unnecessary and irresponsible refusal to come to a fair agreement.”
GM and Ford have both retracted earnings guidance after the strike has cost them billions. Ford said last Thursday that the strike would cost it $1.3 billion, and GM said it would be hit with $800 million in costs. Wells Fargo analyst Colin Langan said the strike costs Stellantis $200 million per week.
Tyler Durden
Sun, 10/29/2023 – 08:45
