UAW Reaches Provisional Agreement with Stellantis, Potential End to Longest Strike in 25 Years
The United Auto Workers (UAW) union has reached a provisional agreement with Stellantis, the manufacturer of Dodge, Ram, Chrysler, and Jeep brand vehicles, according to a source familiar with the negotiations. While the agreement is still pending presentation and signing by union leadership, it is expected to be announced soon, potentially as early as this Saturday.
Following a similar agreement reached with Ford earlier in the week, the tentative deal with Stellantis must be ratified by a vote of rank-and-file UAW members before it goes into effect. The terms of the agreement are currently unknown, as both the automaker and the union declined to comment.
Negotiators are also nearing a tentative agreement with General Motors (GM), although both parties have remained tight-lipped about the status of their negotiations. If this agreement is reached, it is likely to put an end to the longest strike experienced in the industry in 25 years.
The agreement with Ford, which could serve as a model for other automakers, offers significant pay increases and benefits to address the impact of inflation on workers’ paychecks. The last contract was signed in 2019, prior to the price increases caused by the pandemic. Under the deal, Ford workers will receive an immediate 11% raise upon ratification, with additional wage increases totaling 25 percentage points by early 2028. Workers will also receive cost-of-living adjustments to protect against price increases.
Retirement benefits for veteran workers with traditional pension plans will improve, and company contributions to the accounts of 401(k) workers hired since 2007 will increase. However, the union did not achieve its goal of reinstating traditional pension plans for workers hired after 2007 or restoring health coverage for retirees.
The ratification process for the agreement with Ford is set to begin with a meeting of local union officials representing Ford workers across the country on Sunday. Although the agreement offers record benefits, the ultimate ratification is not guaranteed.
Unlike previous strikes, the UAW has taken a new selective approach, striking at specific plants rather than calling all of its members to strike simultaneously against all three companies. The strike initially began on September 15, with subsequent expansion. Currently, there are 16,600 striking members at Ford, 14,200 at GM, and 14,600 at Stellantis.
This selective strategy has increased pressure on GM and Stellantis to swiftly reach their own agreements with the union. With Ford workers already returning to work during the ratification process, the UAW seeks to prevent the other companies from falling behind.
The strike has caused significant financial losses for the automakers. GM reported a loss of $200 million in the first two weeks of the strike, followed by an additional $600 million in the first three weeks of October. The closure of GM’s Arlington plant is expected to result in weekly losses of $130 million. Stellantis has not provided specific loss estimates, but the strike at its Sterling Heights plant could lead to weekly losses ranging from $110 million to $200 million.
As negotiations continue, the industry awaits the outcomes of the union’s agreements with Stellantis and GM, which could mark the end of the long-standing strike.