Editor’s note: this story has been updated to reflect the UAW and GM have NOT reached a tentative agreement as sources suggested.
Stellantis has reportedly agreed to grant a 25 percent increase in wages to UAW members, aligning with a similar offer made by Ford Motor Company.
The negotiations are still in progress, according to an AutoNews.com story, with details such as the treatment of temporary workers yet to be finalized. These developments took place during negotiations, with GM making its proposal around 4:00 a.m. EDT on Friday, and talks resuming at 11:00 a.m.
The automakers aim to reach a final agreement on Friday, but the official announcement may not occur until Sunday.
It’s important to note that any final agreement will require approval from union leadership and a subsequent vote by the company’s union members, a process that may extend over several weeks. Stellantis is also in the process of finalizing portions of a tentative agreement with the union, according to one of the sources.
The UAW recently presented its latest proposal shortly after reaching a tentative agreement with Ford Motor Co., which entails a 25 percent wage increase over the next four years and the reinstatement of cost-of-living adjustments. Ford was the first of the Detroit 3 automakers to settle strikes involving 45,000 workers that had been ongoing since mid-September.
This deal is expected to establish a precedent for the negotiations with Stellantis.
Plus, the UAW asking its Ford employees to go back to work added additional pressure on the other two automakers as well as the strike anywhere, strike anytime approach of the UAW.
GM CEO Mary Barra and UAW President Shawn Fain were engaged in talks on Thursday.
The bottom line
The UAW put pressure on both GM and Stellantis by getting a deal done with Ford. They added additional pressure by calling the Ford UAW workers back to work meaning Ford would have an advantage over its rivals. This all lead to the UAW getting the deals they wanted from the automakers and consumers, dealers, communities should rejoice at this outcome.
