(Detroit) Jeep maker Stellantis has reached a tentative agreement with the United Auto Workers (UAW) union that follows a model established earlier this week by Ford, the UAW announced Saturday evening, calling it “another major victory.”
“Once again, we have achieved what we were told was impossible a few weeks ago,” UAW President Shawn Fain said in a video posted on X. “At Stellantis, we have not only secured a record contract, but we also began to turn the tide in the war against the American working class. »
The agreement, which would also have to be ratified by members, would leave General Motors alone without a contract with the union. The deal could end a six-week strike by more than 14,000 workers at Stellantis assembly plants in Michigan and Ohio, as well as parts warehouses across the country.
Like the Ford workers, the Stellantis strikers are expected to end their picket lines and begin returning to work in the coming days, before the 43,000 union members vote.
The Ford pact calls for 25 percent across-the-board wage increases over the next four and a half years for key assembly plant workers, including 11 percent once the deal is ratified. Workers will also receive a cost-of-living allowance that would raise raises to more than 30 percent, bringing key assembly plant workers to earn more than $40 an hour. At Stellantis, top-level workers currently earn around $31 an hour.
Like Ford’s contract, Stellantis’ deal would run through April 30, 2028.
The deal also includes rehiring 1,200 workers at the now-idled Belvidere, Illinois, factory that the company had planned to close, and hiring 1,000 workers for a new battery plant, the deal said. union.
Democratic U.S. Rep. Bill Foster, who represents Belvidere in Congress, said he had received reports that electric vehicles would be produced at the site, which will be expanded to include a new battery factory. Stellantis permanently closed the factory in the spring and laid off all 1,350 employees who worked there.
Foster said he is working with Illinois Gov. J.B. Pritzker’s office and other state and local officials to reopen the facility. State officials are expected to offer the company an incentive program as part of the deal.
Bruce Baumhower, president of the local union at a large Jeep plant in Toledo, Ohio, on strike since September, said he expects workers to vote to approve the deal because of the wage increases above 30% and a significant increase immediately.
“Eleven percent are directly on the hood,” he said. This is a historic agreement as far as I am concerned. »
Some union members complained that Shawn Fain, the UAW president, had promised a 40 percent raise matching what he said was given to company CEOs, but Mr. Baumhower said that this was Mr. Fain’s opening offer.
“Anyone who knows anything about negotiations always starts way higher than they think is realistic,” he argued.
Jermaine Antwine and other Stellantis workers protesting outside the Sterling Heights, Mich., automaker were elated Saturday after hearing news of a tentative deal.
“Any time you reach an agreement in principle, it’s a good thing,” said Ms. Antwine, 48, of Pontiac, Michigan. This shows that both sides have reached a mutual agreement somewhere within the numbers they started with. »
Discussions were underway on Saturday with General Motors (GM) to try to reach a similar agreement. More than 14,000 GM workers remain on strike at plants in Texas, Michigan and Missouri.
The union launched targeted strikes against the three automakers on September 15, after its contracts with the companies expired.
The union and Stellantis began intense negotiations on Thursday, the day after the Ford deal was announced, and finalized the deal on Saturday.
UAW workers began their targeted strikes at one assembly plant at each company. The strikes expanded on September 22, adding 38 GM and Stellantis parts warehouses.
Ford and GM assembly plants were added the following week, then the union hit Ford hard with the strike of employees at the Kentucky Truck Plant in Louisville, the largest and most profitable plant of the company.
Outside the Sterling Heights factory, morale was high among the strikers. Some said they were looking forward to a vote to ratify the deal and getting back to work.
“The agreement in principle is excellent,” said Anthony Collier, 54, of Sterling Heights, Michigan. We hear it will at least be parity with Ford, so we think a lot of people are eager to sign. Most of us had to dip into our savings and get loans. Everyone knows the economy has suffered for all of us, so it’s a bit difficult not to receive strike pay. »