In a crucial development within the automobile industry, Stellantis, renowned for manufacturing Jeeps, has reportedly sealed a provisional contract agreement with the United Auto Workers (UAW) union. This breakthrough came to pass on Saturday amid intensifying strikes against General Motors, which led to the inclusion of another GM plant in Tennessee.
The contract with Stellantis still necessitates approval by the union’s members, which leaves General Motors the only company yet to secure a settlement. As a tactical measure to compel GM to the negotiation table, the union initiated a strike Saturday night at a GM plant in Spring Hill, Tennessee.
This provisional agreement with Stellantis echoes one that was established earlier in the week with Ford. Moreover, UAW stated that the contract played a significant role in preserving jobs at a factory in Belvidere, Illinois, which had been marked for closure by Stellantis.
GM responded to the escalating strikes and expressed disappointment, especially given the progress they had made in the talks. GM maintained that it had negotiated in good faith with the union and aspired to clinch an agreement expeditiously.
In terms of size, the Spring Hill plant tours as GM’s largest manufacturing facility in North America, with almost 4,000 employees and approximately 11 million square feet of building space. The plant constructs a range of models including the electric Cadillac Lyriq, the GMC Acadia, and Cadillac XT5 and XT6 crossover SUVs.
Stellantis and the UAW’s tentative agreement received confirmation from UAW president Shawn Fain on Saturday during a video conference. He indicated that the deal was subject to a vote by 43,000 members of the company. Subsequently, about 14,000 UAW workers, who were at the time on strike at two Stellantis assembly plants in Michigan and Ohio, were asked to put their strike to an end and resume their duties.
Workers can expect significant financial benefits with this new agreement. It includes a general wage increase of 25% over the next four-and-a-half years for top assembly plant workers, with 11% to be implemented upon ratification of the deal. The average hourly wage for top-tier workers at Stellantis is expected to rise significantly from the current US$31.
The tentative deal stipulates that Stellantis will construct a new mid-size truck at its factory in Belvidere, Illinois, which was previously set for closure. Refreshingly, approximately 1,200 jobs will be reinstated at the factory, and an additional 1,000 workers will be recruited to cater to a new electric vehicle battery plant.
Negotiations with the UAW commenced in earnest on Thursday, a day after the announcement of the Ford deal, and reached completion on Saturday. GM now faces strikes from approximately 18,000 workers across factories in Texas, Michigan, Missouri, and Tennessee. The UAW embarked on targeted strikes against all three automakers— Ford, Stellantis, and GM— on September 15th, after their contracts with the companies lapsed.
In the unfolding scenario, workers expressed optimism about the tentative agreement and their imminent return to work. “The tentative agreement is excellent,” stated Anthony Collier, a worker at the Sterling Heights plant, excitedly awaiting the ratification ballot. The compromise promises financial parity with Ford, sparking hope among workers eagerly anticipating their return to work.
