UAW Union Reaches Preliminary Agreement With Automaker Stellantis

After reaching a deal with Ford three days ago, only GM remains among the “big three” US automakers yet to reach a deal with the United Auto Workers union amidst their current strike.

Stellantis, the Dutch company that owns the Jeep, Ram, and Chrysler auto brands, has reached a tentative deal with the United Auto Workers union, officials have confirmed.

Reports of the breakthrough emerged on Saturday in US media, and come three days after a similar agreement was reached with US-based automaker Ford. The new contract is an example of the “pattern bargaining” the UAW union typically engages in, in which a contract with one company is used as a template for deals with others.

UAW President Shawn Fain said the union’s strike “showed the incredible power of regular working class people to fight for economic justice and win big.”

“Once again we’ve achieved what just weeks ago we were told was impossible,” said Fain in a statement posted to the UAW’s account on the X social media platform.

“Over the 44 days we were on strike, Stellantis more than doubled the total value of the proposals they had on the table… We not only secured a record contract, we have begun to turn the tide on the war on the American working class, and we truly are saving the American dream.”

Among the terms of the new agreement are a 25% wage increase for UAW members at both companies and the potential for future wage adjustments if inflation spikes. The top UAW wage will increase to $40 per hour over more than four years, meaning employees working full time will earn $84,000 yearly.

The contract proposal with Stellantis now moves to a UAW committee responsible for negotiations with the company. It will then need to be approved by a full vote of UAW members.

The UAW has been engaged in strike action against US automakers since September 15, when the union’s previous contracts expired. The walkouts have targeted both auto plants and parts warehouses across the US and have involved more than 45,000 workers. Recently, the strike intensified when UAW members picketed at a Stellantis plant in Sterling Heights, Michigan.

While celebrating the union’s victory in their talks with Stellantis, the UAW announced an expansion of their action against GM, hoping to quickly leverage their success to put pressure on the auto giant. UAW members will be engaging in additional walkouts at GM assembly plants across the country, including in Michigan and Tennessee.

Known for his fiery rhetoric and wearing t-shirts emblazoned with the slogan “eat the rich,” Fain has pursued a more aggressive stance against US automakers than his predecessors. Fain slammed the high pay for CEOs at Ford, GM, and Stellantis compared to other automakers, claiming the companies are capable of paying rank-and-file workers more.

Prices for automobiles have steadily risen in the United States, with outstanding car loan debt representing a major potential problem for the US economy. Automakers face unique challenges manufacturing automobiles in the United States, where the country’s comparatively meager social safety net means they must devote significant resources towards health care and other benefits for workers.