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The UAW and Stellantis have a tentative agreement, according to multiple sources with knowledge of the situation Saturday.
The deal addresses a key issue for the union by adding a new product to the idled Belvidere Assembly Plant in Illinois, according to two of those sources, who were not authorized to speak about the deal. No details were immediately available.
Other items in the agreement include wage increases equaling 25% over the life of the contract, a $5,000 ratification bonus and the ability for employees with at least one year of seniority to participate in a company new car lease program, according to sources. A text message to local union members indicated that 3,200 supplemental employees would be rolled over to permanent status within 90 days of ratification and that starting pay for supplemental workers would be $21 an hour.
The proposed labor agreement, which followed numerous meetings between union and company officials over the past week, leaves only General Motors without a tentative union agreement among the Detroit Three, 44 days after the union’s strike began against the automakers.
The agreement between Stellantis and the United Auto Workers union will need to be ratified by members before it can go into effect. It follows the announcement of a deal between Ford and the union on Wednesday, which was expected to substantially increase pressure on the other two companies to reach a settlement.
The union had been on strike at targeted facilities against all three automakers since mid-September, but the union ended its strike against Ford after announcing the tentative agreement there. It wasn’t immediately clear whether the union would follow the same plan with Stellantis.
More:GM, Stellantis meet with UAW, seeking deal ‘as soon as possible’
The union, whose members walked out of the company’s Toledo Assembly Complex in Ohio and numerous parts distribution centers across the country, expanded the strike last Monday to Stellantis’ Sterling Heights Assembly Plant, where the profitable Ram 1500 pickup is built.
The deal with Ford includes a 25% wage increase over the life of the contract along with other improvements, according to the union. The deal with Stellantis is expected to follow the general pattern of that agreement, although with some additional items.
More details on the agreement with Stellantis, owner of the Jeep, Ram, Chrysler, Dodge and Fiat brands, are expected to be released in the coming days.
Stellantis spokeswoman Jodi Tinson declined to comment.
In Canada, Stellantis has also been in negotiations with Unifor, the union representing autoworkers there. A strike deadline in those talks is set for 11:59 p.m. Sunday.
Unifor posted an update on its website Friday:
“As we approach Sunday’s strike deadline there is progress to report as, after days of stalling, there was movement from the company today. Your bargaining committee has been clear in our message to Stellantis − no concessions and no extensions.”
Deals between Unifor and Ford and General Motors have already been secured, although the GM agreement followed a 12-hour strike.
As for GM negotiations with the UAW, a person with direct knowledge of them said the automaker has agreed to many of the same financials that are in the Ford tentative agreement: A 25% wage increase over the life of the contract with 11% the first year, the cost-of-living adjustment formula as it was in 2009 before the UAW was forced to give it up amid the Great Recession and maintaining profit sharing. It was unclear what exact issues were stalling reaching a tentative agreement.
Rebecca Givan, associate professor at the School of Management and Labor Relations at Rutgers University, said Saturday that Stellantis securing a tentative agreement with the UAW means the pressure is on for General Motors to do the same “very, very soon.”
“I would say the tentative agreement at Ford and workers returning to work through the ratification process put everything on the table for Stellantis and GM. They are determined to not to be at a disadvantage compared to Ford,” Givan said.
Three sources familiar with GM’s negotiations said there remain a few issues to resolve that are holding up an agreement despite marathon bargaining sessions that have gone well into the early morning hours over the past two days.
“It’s hard to tell in these final stages if there is movement needed on a headline demand or there may be subcommittee work still being finalized that are not the core issues, but you don’t have a tentative agreement until everything is squared away,” Givan said of the GM negotiations.
Givan said a breakthrough in the Stellantis deal, such as the saving of the Belvidere plant and agreements to include joint ventures in the master labor contract, would mean GM would have to match those gains in some way at their table. Stellantis announced in December it would idle the Belvidere Assembly Plant, citing the cost of the transition to electric vehicles. That plant previously produced the Jeep Cherokee SUV.
“They’re in a race to the finish line now,” Givan said. “GM does not want to be more than a few hours behind Stellantis. They know what they have to do and any waiting is dragging it out for no reason. GM loses money by waiting to get to what’s likely a clear contract at this point.”
Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber.
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