Stellantis, the manufacturing giant behind Jeep, has landed a provisionary contract agreement with the United Auto Workers (UAW) union on Saturday. This development arose amidst intensifying strikes against General Motors, marked by the inclusion of a plant in Tennessee to the cause.
While this Stellantis accord awaits ratification from union members, General Motors remains the sole entity devoid of a settlement with the union. In a strategic effort to increase pressure on General Motors, the UAW union staged a walkout on Saturday night at a GM factory in Spring Hill, Tennessee.
The Stellantis agreement brings back memories of a similar agreement set up earlier this week with Ford. However, this contract also heralds a silver lining for the workforce at a factory in Belvidere, Illinois that Stellantis initially planned to shut down.
GM expressed their dissatisfaction with the added strike at the Spring Hill assembly and propulsion systems plant, pointing out the progress they had made thus far. GM maintains that they have always engaged in fair bargaining and remains hopeful of reaching a settlement sooner rather than later.
Spring Hill, GM’s most extensive production infrastructure in North America, boasting 11 million square feet of crafting space and nearly 4,000 employees, is the manufacturing hub for the electric Cadillac Lyriq, GMC Acadia, and Cadillac XT5 and XT6 cross-over SUVs.
Shawn Fain, the UAW president, confirmed the Stellantis agreement in a video appearance Saturday evening and stated that the approval of 43,000 members at the company was required for the deal to go through. Following the compromise, about 14,000 UAW workers on strike at two Stellantis assembly plants in Michigan and Ohio, and numerous parts distribution centers across the country, were directed to cease their protests and return to work, thus bringing a six-week strike at the Jeep and Ram vehicle manufacturing company to an end.
The settlement includes a 25% wage increase for top assembly plant workers spread over four-and-a-half years, 11% of which will be delivered upon the deal’s ratification. Plus, workers are also set for cost-of-living pay adjustments that would bring the total wage increases to 33%, enabling hourly wage rates of over ##$42 for top workers at Stellantis.
The Stellantis deal, much like the Ford agreement, is expected to last until 30th April 2028. In an encouraging turn of events, the union announced that it saved jobs in Belvidere, an engine plant in Trenton, Michigan, and a machining factory in Toledo, Ohio. This landmark deal also secures a commitment from Stellantis to construct a new mid-size truck at their factory in Belvidere, Illinois, saving the site from closure and creating 2,200 jobs in the process.
Stellantis also managed to successfully avert an initial plan of eradicating 5,000 U.S. jobs, and instead, due to the union’s efforts, added 5,000 jobs by the end of the contract. The UAW considers the Stellantis agreement a remarkable feat, representing gains worth four times more than the benefits outlined in the 2019 contract. The agreement ensures that new employee starting wages will experience a 67% rise, while that of temporary workers will observe an increase of more than 165%. The contract also encompasses the union’s right to strike over the issue of plant closures at Stellantis and guarantees the right to do so should the company fail to meet product and investment commitments.
Despite minor complaints from some union members regarding promises of a 40% wage increase, the consensus among workers is a positive one. They look forward to ratifying the agreement and returning to work, particularly due to the provision for above 30% pay raises and a significant immediate increase.
A final note: the UAW and Stellantis dove headfirst into intense negotiations on Thursday, following the announcement of the Ford deal, and eventually cemented it on Saturday. Meanwhile, about 18,000 workers at GM are now participating in strikes at manufacturing infrastructures in Texas, Michigan, Missouri, and Tennessee. The union began targeted strikes against all three automakers on Sept. 15 after the expiration of their contracts with the three companies.
This contract agreement serves as an inspirational turning point for future negotiations in other industries.
