UAW, Stellantis reach deal

After Ford, Stellantis, the manufacturer of the well-known Chrysler series and one of the Detroit Big Three, manages to get UAW to instruct the workers to get back to the plants.

On Saturday, October 28, the United Auto Workers (UAW) tentatively agreed on a labor deal with Stellantis, the company that owns Chrysler, which is a significant step towards ending the simultaneous strike against the Detroit Three automakers. The deal, following a template set with Ford, includes a 25% wage hike over a 4.5-year contract. Negotiations with General Motors (GM) are also ongoing. Stellantis had previously closed its Belvidere, Illinois plant, but the deal may lead to its reopening, contingent on tax incentives. The tentative contract also addresses the use of temporary workers and includes provisions for significant investment.

Stellantis American HQ in Auburn Hills, Michigan

This strike involved around 45,000 workers and cost the industry billions. UAW President Shawn Fain aimed to address worker concerns and reverse closures, while automakers argued that the UAW’s demands would raise costs and affect their competitiveness. The long-term success of the contract hinges on the UAW’s ability to organize workers at non-union automakers and level the playing field with electric vehicle (EV) leader Tesla, as negotiations also encompass future wages and unionization in EV battery plants. The strike, which began at smaller plants, eventually impacted more significant facilities that produce popular vehicles, such as pickup trucks and SUVs. The outcome of the UAW’s campaign is closely watched, with implications for workers, automakers, and political strategies in auto-producing states.

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