Stellantis Offers A 14.5% Wage Increase To The UAW

Stellantis has presented its initial economic proposition for a new contract with the United Auto Workers (UAW), offering a 14.5% wage increase without lump sum payments for most of its represented employees. Additionally, the automotive conglomerate, led by CEO Carlos Tavares, has put forward plans for “inflation protection” bonuses, providing $6,000 in the first year and $4,500 in the subsequent three years for all staff.

In response, the UAW circulated a social media flyer titled “Stellantis finally responds,” underscoring the company’s status as the wealthiest among the big three automakers. While acknowledging the wage hike, the UAW emphasized that it fails to fully compensate for past inflation or losses. The leaflet pointed out that salaried employees represented by the company’s union would only receive a lump sum payment, and noted that Stellantis had rejected all union proposals regarding profit sharing, pensions, job security, increased pensioner salaries, and quality of life.

The union, having lodged complaints of unfair labor practices against both Stellantis and General Motors (GM) in connection with negotiations, had initially called for a 40% salary increase. They highlighted the substantial increases in CEO compensation and the billions in profits accrued by automakers in recent years. The UAW is in discussions with Stellantis, Ford, and GM ahead of the contract’s imminent expiration. They’ve stated their readiness to initiate a strike should agreements not be reached by the deadline.

Mark Stewart, Chief Operating Officer of Stellantis’s North America, expressed, “This is a responsible and robust offer that positions us to continue providing quality jobs for our employees today and in the coming generations here in the U.S. It also safeguards the Company’s future competitiveness in an industry rapidly transitioning to electric vehicles.”

However, the proposed deal remains significantly below the union’s demands, which include a 40% hourly wage increase, a 32-hour workweek, and reinstatement of traditional-style pension plans, among other provisions. Presently, only around 30% of Stellantis’s UAW-represented workforce, hired before October 2007, possess pension plans.

UAW President Shawn Fain dismissed offers from both GM and Ford as inadequate, describing GM’s proposal, presented on Thursday, as “an insulting proposition that falls far short of a fair agreement for America’s autoworkers.”

The existing contract, affecting approximately 43,000 employees, is set to expire at 11:59 p.m. on Thursday, Sept. 14th.