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 recently announced its latest proposal to the United Auto Workers, which includes significant raises of nearly 21% throughout the duration of the contract. The proposal features an immediate 10% pay increase and the elimination of wage tiers for certain workers. This development is part of the ongoing battle between the major Detroit automakers and the union.
According to the new details released by the company, Stellantis’ proposal aligns with those put forth by Ford and General Motors. The proposal also includes continued profit sharing for workers.
“The teams have been very, very careful to listen, very careful for us to come up with best offers that we can do that also protect … the company,” COO Mark Stewart said during a press call on Saturday.
The tension between the UAW and automakers Stellantis, Ford, and General Motors escalated on Friday, with the union initiating work stoppages after failing to reach an agreement by the Thursday deadline. The stand-up strike began with walkouts at key plants, with the potential for further strikes if necessary.
The union has been advocating for a range of improvements, including 40% hourly pay increases, a shorter workweek, a return to traditional pensions, the elimination of wage tiers, and the restoration of cost-of-living adjustments. At this time, the UAW has not responded to the latest proposal.
Meanwhile, Ford and GM have resumed negotiations after a day without talks. Stellantis has announced plans to resume discussions on Monday.
UAW President Shawn Fain previously mentioned that Stellantis had previously offered a 17.5% increase.
Under the new proposal, starting pay for supplemental employees would increase by nearly 27% to $20 an hour.
The proposal also includes a reduction in the timeline for reaching the top of the hourly wage scale and the complete elimination of the wage-tier system for the Mopar division.
Stellantis has also offered an inflation protection measure within compensation and has committed over $1 billion for improvements in pension and retirement savings plans. The company’s leadership has disputed claims about facility closures, emphasizing the need to remain competitive.
“It’s not about warfare, it’s about win-win,” Stewart said. “It’s about us finding something that is great for our folks today, able to keep a future for tomorrow … for our company to be able to continue the investment path we have for electrification, and for our U.S. operations to be strong so we can compete against the transplants and we can compete against the new entrants.”
President Joe Biden has urged the companies to improve their offers in order to reach a strong contract amid a period of record profits.
— CNBC’s Michael Wayland contributed to this report.
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