DETROIT (AP) — Jeep maker Stellantis has reached a tentative collective bargaining agreement with the United Auto Workers union that follows a pattern set by Ford earlier this week, the UAW announced Saturday evening, calling it “another major victory.”
“We have once again achieved what was said to be impossible just a few weeks ago,” said UAW President Shawn Fain said in a published video on X, formerly known as Twitter. “With Stellantis, not only did we get a record deal, we also began to turn the tide in the war against the American working class.”
The deal, which still needs to be ratified by members, leaves only General Motors without a contract with the union. The agreement could end a six-week strike by more than 14,000 workers at Stellantis assembly plants in Michigan and Ohio and at parts warehouses across the country.
Like Ford workers, Stellantis strikers are expected to dismantle their picket lines and begin returning to work in the coming days before 43,000 union members vote.
The union said most of the key elements of the agreement at Ford will be transferred to Stellantis – including 25% across-the-board wage increases over the next 4 1/2 years for top workers at assembly plants and 11% once the agreement is ratified. Workers will also be paid wages in line with their cost of living, which would bring the increase to more than 30%, with top workers at assembly plants making more than $40 an hour. At Stellantis, top executives now earn around $31 an hour.
Like the Ford contract, the Stellantis deal would run until April 30, 2028.
The deal also includes rehiring 1,200 workers at the now-defunct Belvidere, Illinois, factory that the company had planned to close, as well as hiring 1,000 workers for a new battery plant, the union said.
Democratic U.S. Rep. Bill Foster, who represents Belvidere in Congress, said he had received indications that electric vehicles were being produced at the site. Stellantis closed the plant indefinitely in the spring.
Foster said he has been working with Illinois Gov. JB Pritzker’s office and other state and local officials to reopen the facility. State officials are expected to offer the company an incentive package as part of the agreement.
Bruce Baumhower, president of the local union at a large Stellantis Jeep factory in Toledo, Ohio, that has been on strike since September, said he expects workers to vote for the deal because of the wage increases of more than 30% and an immediate big raise.
“Eleven percent is exactly the right amount,” he said. “For me it is a historic agreement.”
Some union members have complained that Fain promised 40% raises to match the raises he said were paid to the companies’ CEOs, but Baumhower said that was the opening offer from UAW President Shawn Fain.
“Anyone who knows anything about negotiations always starts much higher than you think is realistic,” he said.
Jermaine Antwine and other Stellantis workers demonstrating outside the automaker’s plant in Sterling Heights, Michigan, were excited Saturday after hearing about a tentative deal.
“Any time you get a tentative agreement, it’s a good thing,” said Antwine, 48, of Pontiac, Michigan, who has been with the automaker for 24 years and is a materials team leader at the Sterling Heights plant. “Ultimately, the numbers they agreed to were exactly what the UAW wanted.”
DeSean McKinley, 45, of Detroit, said he was confident about the settlement even without learning all the details.
“I’ve heard through the grapevine that it’s pretty good and that’s really a blessing for all of us, all UAW workers,” said McKinley, who worked at Stellantis for nine years and works at the automaker’s Sterling Heights assembly plant, which is located joined the strike on October 23rd. “A new contract for me… I have a son in college. I have a wife. I have a grandson on the way. This means I can take care of my family and better prepare for the future.”
The union and Stellantis held intensive negotiations on Thursday, a day after the Ford deal was announced, before finalizing the agreement on Saturday. Talks were also underway with General Motors on Saturday to reach a similar agreement. Over 14,000 GM workers continue to strike at factories in Texas, Michigan and Missouri.
The union began targeted strikes against all three automakers on September 15 after their contracts with the companies expired. At its peak, about 46,000 workers went on strike against all three companies, about a third of the three Detroit companies’ 146,000 union members. Automakers laid off several thousand more as parts shortages spread through their manufacturing systems.
Under the Ford deal, workers with pensions will also receive small raises upon retirement, and those hired after 2007 with 401(k) plans will receive large raises. For the first time, the union will have the right to strike over the company’s plans to close factories. Temporary workers are also getting big raises, and Ford agreed to shorten the time it takes new hires to reach the top of the pay scale to three years.
Other union leaders who have pursued more aggressive negotiating strategies in recent months have also won wage increases and other benefits for their members. Last month, the union representing Hollywood writers called off a nearly five-month strike after achieving some success in compensation, tenure and other areas. This summer, the Teamsters also secured new pay raises and benefits for unionized UPS workers after threatening a nationwide strike at the delivery company.
Outside the Sterling Heights plant, strikers were elated. Some said they were looking forward to a ratification vote on the agreement and getting back to work.
“The tentative agreement is excellent,” said Anthony Collier, 54, of Sterling Heights, Michigan. “We have heard that it will at least be on par with Ford, so we think a lot of people are looking forward to the signing. Most of us had to dip into savings and take out loans. Everyone knows the economy has been tough on all of us, so having to forego strike pay is a little difficult.”
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AP Auto Writer Tom Krisher reported from Detroit. AP business reporter Haleluya Hadero contributed to this report from Jersey City, New Jersey. AP Staff Writer Corey Williams contributed from Sterling Heights, Michigan.
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