Jeep maker Stellantis has reached a tentative contract agreement with the United Auto Workers union, following the template set by Ford earlier this week. The deal, which still needs to be ratified by members, leaves General Motors as the only company without a contract with the union.
Ending the Six-Week Strike
This agreement has the potential to end a six-week strike by more than 14,000 workers at Stellantis assembly plants in Michigan and Ohio, as well as parts warehouses across the nation. Similar to Ford, Stellantis workers are expected to take down their picket lines and return to work in the coming days, pending a vote by the 43,000 union members.
Key Details of the Deal
The specifics of the Ford contract will largely carry over to Stellantis. This means that top assembly plant workers at Stellantis can expect a 25% increase in general wages over the next 4 1/2 years, with 11% of the increase being implemented once the deal is ratified. Additionally, workers will receive cost-of-living pay, resulting in raises totaling over 30%. This would mean that top assembly plant workers at Stellantis would make more than $40 per hour, compared to the current rate of around $31 per hour.
Agreement Details and Future Plans
Similar to Ford, the contract between Stellantis and the United Auto Workers will run through April 30, 2028. In an unexpected move, the deal also includes an opportunity for a new vehicle at the currently idle factory in Belvidere, Illinois. Previously, Stellantis had planned to shut down this facility.
Negotiations with General Motors are currently underway with hopes of reaching a similar agreement. As of now, over 14,000 workers at GM factories in Texas, Michigan, and Missouri remain on strike. The strike action began on September 15 after contracts with all three automakers expired.
