Demonstrators during a United Auto Workers (UAW) practice picket outside the Stellantis Mack Assembly Plant in Detroit, Michigan, US, on Wednesday, Aug. 23, 2023.
Jeff Kowalsky | Bloomberg | Getty Images
Stellantis, the automaker, has made a substantial offer of four-year wage increases to its hourly workers who are represented by the United Auto Workers (UAW). The company hopes to avoid a potentially costly strike.
The proposal from Stellantis entails a 14.5% wage increase over the four-year term of the prospective agreement for the majority of its approximately 43,000 UAW-represented hourly employees. Newer employees, known as in-progression workers, would receive a 27% boost to their starting wages. Furthermore, their time period for reaching the maximum wage rate would be shortened to six years, compared to the existing eight-year duration under the current deal.
The current contracts between the UAW and the three Detroit automakers will expire at 11:59 p.m. on Thursday. Union leaders have threatened strikes if no deal is in place by that time. Notably, the UAW has never simultaneously called for major strikes against all three companies at once.
In addition to wage increases, Stellantis’s offer also includes a one-time “inflation protection payment” of $6,000 in the first year of the agreement for UAW-represented employees, followed by a total of $4,500 in additional payments distributed over the subsequent three years.
Another notable aspect of the proposal is the designation of Juneteenth as a paid holiday for workers covered by the agreement.
“This offer is both responsible and strong, enabling us to continue offering quality jobs for our employees, both now and in future generations in the United States,” declared Mark Stewart, the Chief Operating Officer of Stellantis’s North America unit. He further emphasized that the deal would safeguard the company’s ability to compete globally within an industry that is transitioning rapidly towards electric vehicles.
UAW Vice President Rich Boyer confirmed that negotiations are still ongoing and will persist in the hopes of reaching an agreement before the deadline. He stated that the union will take appropriate action if no agreement is reached.
It is worth noting that the proposed wage increase is higher than those offered by competitors General Motors and Ford Motor, who suggested raises of 10% and 9% respectively. Additionally, GM and Ford included additional ratification bonuses, which were not part of Stellantis’s offer.
However, the proposed deal falls significantly short of the demands put forth by the union, which include a 40% hourly pay increase, a 32-hour workweek, and the reinstatement of traditional-style pension plans, among other requests. Presently, only about 30% of Stellantis’s UAW-represented workers, specifically those employed before October 2007, have pension plans.
UAW President Shawn Fain characterized offers from both GM and Ford as inadequate. In reference to GM’s proposal presented on Thursday, he described it as “an insulting proposal that doesn’t come close to an equitable agreement for America’s autoworkers.”
Last month, UAW members voted overwhelmingly to grant union leaders the authority to call for strikes if necessary.
— CNBC’s Michael Wayland contributed to this story.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
