Chrysler manufacturer Stellantis has struck a tentative deal with the United Auto Workers (UAW) union to end a six-week strike. This agreement, pending approval by union leaders and
members, mirrors a similar deal reached with Ford the previous week. The UAW commenced strikes against GM, Ford, and Stellantis in September, marking the first time in the union's history that all three companies have been targeted simultaneously. While an agreement has been reached with Stellantis, negotiations with GM are ongoing.
The agreement between the UAW and Stellantis will result in a 25% increase in wages for most workers over the next four-and-a-half years. The lowest-paid workers at Stellantis are set to experience a wage increase of over 165% during the agreement's duration. Stellantis employees will return to work during the ratification process.
UAW President Shawn Fain expressed satisfaction, stating, "Once again, we have achieved what just weeks ago we were told was impossible." Additionally, the deal includes Stellantis reopening an assembly plant in Belvidere, Illinois, which closed earlier this year. The carmaker has also committed to constructing a new battery plant adjacent to the existing Belvidere facility.
Rich Boyer, UAW vice president, commented, "From the strength of our strike, we are bringing back those jobs and more. Stellantis is reopening the plant, and the company will also be adding over 1,000 jobs at a new battery plant in Belvidere."
Mark Stewart, Stellantis North America chief operating officer, expressed gratitude to the negotiating teams and looked forward to resuming operations with their 43,000 employees.
U.S. President Joe Biden applauded the agreement, stating, "I applaud the UAW and Stellantis for coming together after hard-fought, good-faith negotiations to reach a historic agreement that will guarantee workers the pay, benefits, dignity, and respect they deserve."
While tentative agreements have been reached with Ford and Stellantis, negotiations with General Motors (GM) have not yet yielded a deal. The UAW announced its intention to extend the strike against GM to the company's plant in Spring Hill, Tennessee. UAW President Shawn Fain expressed disappointment with GM's stance, while GM expressed its disappointment with the UAW's actions, emphasizing its continued commitment to reaching an agreement. GM anticipates the strike will cost about $200 million each week, leading the company to withdraw its profit forecasts for the year. However, GM stated it had offered a "record" contract to help resolve the dispute. Photo by ajay_suresh, Wikimedia commons.