According to a recent announcement on X, formerly known as Twitter, the United Auto Workers (UAW) union has reached a tentative agreement with Stellantis, which is great news for the 14,600 UAW members who have been on strike at Stellantis. However, the strike against General Motors (GM) has been expanded, putting a damper on hopes of ending the last remaining auto strike.
The agreement with Stellantis, known for its Dodge, Ram, Chrysler, and Jeep brands, includes the revival of a previously closed assembly plant in Illinois and other wins for the union. UAW President Shawn Fain and Vice President Rich Boyer, the union’s chief negotiator, hailed this as a major victory.
However, the disappointment came with the news that almost 4,000 GM factory workers in Tennessee, who build Cadillac and GMC SUVs, have joined the strike at 5 pm CT. Despite the progress made, GM expressed disappointment, stating that they have continued to negotiate in good faith and aim to reach an agreement as soon as possible.
The union expanded the strike five times previously to increase pressure on the Big Three automakers. This expansion announcement did not come from Shawn Fain, and the reasons for the decision were not provided. The UAW National Stellantis Council will vote on November 2 to send the tentative agreement to the broader membership for approval. It requires ratification from both parties to take effect.
While many details of the agreement with Stellantis are not yet known, it is expected to have similar pay and benefit increases as the deal reached with Ford. This includes an immediate minimum 11% raise and additional pay increases that could raise total wages by more than 30% during the contract’s life. The agreement is also likely to include a cost-of-living adjustment, which was missing in the previous Chrysler deal due to financial constraints.
A significant surprise in the Stellantis deal is the reopening of a plant in Belvidere, Illinois, which had closed earlier this year. The plant will produce a midsize truck to replace the Jeep Cherokee compact SUV, creating new job opportunities for workers.
Both the Ford and Stellantis deals focus on providing substantial benefits to union workers to counter inflation that has affected their paychecks in recent years. The UAW has also secured improved pension benefits for senior workers and increased company contributions to 401(k) accounts for workers hired since 2007. However, the union did not achieve its goals of reinstating traditional pension plans for newer hires or restoring retiree health care coverage.
If all the Big Three automakers reach and ratify agreements, it will likely bring an end to the longest autoworkers’ strike in 25 years. The ratification process for the Ford deal is set to begin soon, followed by a similar process for Stellantis.
