Breakthrough: Stellantis and Auto Workers Reach Tentative Deal to End Six-Week Strike

Stellantis and the United Auto Workers union have reached a tentative contract agreement that could put an end to a six-week strike involving more than 14,000 workers at Stellantis assembly plants in Michigan and Ohio, as well as parts warehouses across the nation. This development follows a model established by Ford and its union workers just last week. The agreement, which is still pending ratification by the union members, leaves General Motors as the only major automaker without a contract with the union.

The deal closely mirrors the one struck with Ford, which includes a 25% wage increase for top assembly plant workers over the next 4.5 years, with 11% becoming effective upon ratification. This arrangement also involves cost-of-living adjustments, potentially pushing the raises to over 30%, with top assembly plant workers earning more than $40 per hour. In contrast, top-scale workers at Stellantis currently make around $31 per hour. Like the Ford contract, the Stellantis agreement is set to run through April 30, 2028.

One of the notable aspects of the agreement is the allocation of a new vehicle for the previously idle factory in Belvidere, Illinois, which had been slated for closure. This provision ensures job security and future production at the Belvidere facility.

The president of the local union at a prominent Stellantis Jeep factory in Toledo, Ohio, Bruce Baumhower, expressed optimism that workers would vote to approve the deal, citing the substantial pay raises of over 30% and a significant immediate raise of 11%. Some union members had expressed dissatisfaction with the initial promise of 40% raises, but Baumhower clarified that such promises often serve as starting points in negotiations.

Negotiations were also underway with General Motors to reach a similar agreement, with over 14,000 GM workers still on strike at various factories. The strikes began on September 15, following the expiration of contracts with the three major automakers, leading to targeted strikes and parts shortages affecting manufacturing systems.

In summary, the tentative agreement between Stellantis and the UAW signals a potential resolution to a protracted strike, mirroring elements of the recently reached deal with Ford. This development represents a significant step in ensuring better wages, job security, and improved benefits for unionized auto workers in the United States.