Stellantis Boosts Wage Increase Offer to 21% Amid Ongoing UAW Strike: A Comprehensive Update

Stellantis, one of the Detroit Three carmakers, upped its offer to include a 21% wage increase for hourly workers over the course of the contract as a historic United Auto Workers strike continued Saturday. File Photo by James Atoa/UPI

1 of 2 | Stellantis, one of the Detroit Three carmakers, upped its offer to include a 21% wage increase for hourly workers over the course of the contract as a historic United Auto Workers strike continued Saturday. File Photo by James Atoa/UPI | License Photo

Sept. 16 (UPI) — Stellantis, one of the Detroit Three carmakers, has escalated its offer in response to the ongoing historic United Auto Workers strike. The company now proposes a 21% wage increase for hourly workers over the course of the contract.

The carmaker, which is the parent company of Jeep, Ram, Chrysler, Dodge, and Fiat, released a news outlining the details of the offer. According to the proposal, wages would immediately increase by 10% if the contract were to be ratified. This marks the fourth proposal presented by Stellantis.

Furthermore, Stellantis has addressed other demands made by the powerful union. It has resolved to eliminate the wage tier in its Mopar parts division and reduce the hourly wage progression timeline from eight years to four years.

“This adjustment would bring all current full-time hourly workers to the top rate during the upcoming agreement,” Stellantis stated.

Additionally, the company mentioned “over $1 billion in retirement security improvements” and a new offer of “inflation protection measure,” although specific details about the measure were not provided.

“Through collaboration, we can achieve success together. We are eager to bring everyone back to work as soon as possible,” Stellantis affirmed.

Thousands of auto workers from three U.S. assembly plants began their strike at midnight on Thursday when negotiations between the UAW and the Big Three automakers (Stellantis, Ford Motor Co., and General Motors) failed to reach an agreement on a new contract.

While Ford and GM have resumed negotiations, no talks occurred between the UAW and the automakers on Friday when the strike started.

This strike marks the first time in the union’s 90-year history that its members have collectively struck against all three of the country’s largest carmakers simultaneously.

Under the new leadership of President Shawn Fain, the union has implemented a rolling strike strategy, targeting select facilities and pledging to include more if negotiations do not progress.

“Shawn Fain and the autoworkers are reigniting the excitement and support that the UAW once enjoyed as a pioneer in America,” historian Nelson Lichtenstein remarked to Jacobin.

President Joe Biden has expressed his support for the union, recognizing the frustrations of workers who have contributed to the companies’ record-breaking profits.

Biden stated, “While nobody desires a strike, I respect the workers’ right to exercise their options through the collective bargaining system. I understand their frustrations.”

The president acknowledged that the automakers have made significant offers, but he believes they should go further to ensure that their record corporate profits translate into record contracts for the UAW.

The union is requesting a 40% pay raise over the four-year contract, citing a 40% pay increase for automaker CEOs over the past four years.

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