Stellantis Offers Pay Raises and Ends Wage Tiers in Latest Proposal to UAW
Stellantis announced on Saturday that it has made a new proposal to the United Auto Workers (UAW) that includes substantial pay raises and the elimination of wage tiers for some workers. The proposal includes a 10% immediate pay increase and raises totaling nearly 21% over the course of the contract. Stellantis is one of the big three Detroit automakers engaged in a historic showdown with the UAW.
Proposal in Line with Ford and General Motors
The proposal put forth by Stellantis is similar to those made by Ford and General Motors. It also includes the continuation of profit sharing for workers. The details of the offer were released by the company on Saturday.
Commitment to Workers and Company
Mark Stewart, COO of Stellantis, emphasized the company’s careful consideration of the UAW’s demands and its commitment to finding the best offers for both workers and the company. He stated this during a call with reporters on Saturday.
Standoff Between UAW and Automakers
The standoff between the UAW and Stellantis, Ford, and General Motors escalated on Friday when the union initiated work stoppages after failing to reach an agreement by the deadline. The strike began with walkouts at three key plants, with the potential for more UAW members to join if necessary.
Union’s Demands and Negotiations
The UAW has been seeking various concessions, including 40% hourly pay increases, a reduced workweek, the elimination of compensation tiers, and other items. Ford and General Motors resumed negotiations on Saturday, while Stellantis plans to resume talks on Monday.
New Proposal Details
Under the new proposal, starting pay for supplemental employees would increase significantly, and the timeline for reaching the top of the hourly wage scale would be reduced. Stellantis also offered inflation protection and committed over $1 billion for improvements in pension and retirement savings plans. The company clarified its plans regarding facility closures, emphasizing its commitment to efficiency and shifting resources towards electric vehicles.
Importance of a Financially Feasible Agreement
Stellantis, Ford, and General Motors have expressed concerns about the financial feasibility of the UAW’s demands. They argue that meeting these demands would negatively impact the companies’ ability to support their workers and remain competitive.
President Biden’s Call for Improved Offers
President Joe Biden urged the automakers to improve their current offers, emphasizing the importance of reaching a strong contract agreement during a period of record profits.
