Stellantis and UAW have reached a provisional agreement to end the ongoing strike in the United States, which has now been going on for six weeks. This represents the second attempt at an agreement concluded by the union in negotiations with automotive industry giants, including Ford, General Motors, and Stellantis, specifically. For nearly two months, workers have been on strike to negotiate the renewal of their labor contracts, a situation that has even drawn the attention of the President of the United States, Joe Biden, who openly supported the protests. The main effect of the strike has been the halt of production at various facilities of the involved automakers.
Stellantis has reached an agreement with UAW to put an end to the 6-week strike in the United States
The agreement reached is essentially similar to the one obtained with Ford and includes a 25% wage increase for the entire duration of the contract, extending until 2028, with the possibility of making adjustments in response to changes in the cost of living. Consequently, the maximum wage could reach $40.46 per hour by the end of the contract, along with a $5,000 bonus.
Mark Stewart, Chief Operating Officer of Stellantis in North America, chose to refrain from commenting on the contract details until it is ratified by UAW members. However, he expressed enthusiasm for the return to work of the 43,000 employees and the restoration of operations to implement the company’s “Dare Forward 2030” strategic plan.
It is important to note that Stellantis has more than 14,000 UAW members involved in the strike, spread across its two assembly plants and component distribution centers nationwide.
President of the United States, Joe Biden, welcomed the provisional agreement between the UAW union and Stellantis as a “revolutionary contract”. In a statement released Saturday, he emphasized that this agreement recognizes the sacrifices made by workers in the automotive sector to revitalize American industry, resulting in significant wage increases. Biden underscored the crucial role of unions and collective bargaining in creating jobs for the middle class and supporting iconic American companies in thriving.
UAW has also announced that Stellantis has agreed to reopen the Belvidere plant in Illinois, which was closed on February 28th, with plans to build new state-of-the-art pickups and a new adjacent factory for battery production. Furthermore, there are no closures planned for the Trenton, Michigan, and Toledo, Ohio, plants. In the meantime, the strike against General Motors continues without resolution.