Stellantis offers 14.5% pay increase to UAW, days before possible strike

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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 on Friday offered significant four-year wage increases to its hourly workers represented by the United Auto Workers, as it scrambles to avoid a costly strike.

The automaker’s offer would provide a 14.5% wage increase over the four-year term of the proposed deal for most of Stellantis’s roughly 43,000 UAW-represented hourly workers. The newer employees, also known as in-progress, would receive a 27% increase to their starting wage and have a shorter period of time to reach the maximum wage. This is compared to the eight year deal currently in place. The union leaders have warned of strikes if a deal has not been reached by then. The UAW has never in its history called major strikes simultaneously against all three companies.

Stellantis’s offer also provides its UAW-represented employees with a $6,000 one-time “inflation protection payment” in the first year of the deal, and a total of $4,500 in additional payments over the following three years.

In addition, the proposal would make Juneteenth a paid holiday for workers covered by the deal.

“This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the U.S.,” said Mark Stewart, chief operating officer of Stellantis’s North America unit. The proposal would also make Juneteenth a paid holiday for workers covered by the deal. Rich Boyer, UAW Vice President told CNBC the union is in negotiations and hopes to reach a deal by the deadline. He said that if there is no agreement, the union would take the appropriate action. Stellantis did not offer any additional ratification bonus. The two companies offered them. Only 30% of Stellantis workers who are represented by the UAW — those who were hired before October 2007, currently have pensions. He described GM’s proposal, which was presented on Thursday as “an insulting offer that doesn’t even come close to being an equitable agreement for America’s autoworkers.” “

UAW membership voted last month to give union leaders the power to call strike if necessary.