Stellantis’ Last Proposal to UAW: Addressing Illinois Plant and Offering 20% Wage Increases

Stellantis’ Proposal Offers Hope for Jeep Plant and Wage Increases

Addressing the Future of the Belvidere Plant

In a recent development, Stellantis has presented a highly attractive proposal to the United Auto Workers (UAW) prior to the worker strike. This offer not only addresses the future of the currently inactive Jeep plant in Illinois but also includes a substantial 20 percent increase in wages over the course of four years. Mark Stewart, the Chief Operating Officer of Stellantis North America, expressed his satisfaction with the proposal, calling it “very compelling”. While he did not disclose the details regarding the Belvidere Assembly Plant, which had ceased production of Jeep Cherokees in February, he emphasized that the offer was only valid until the contract’s expiration on Thursday at 11:59 p.m. However, Stellantis remains open to resolving the matter and is eager to revisit the issue.

Promising Wage Increases

Stellantis’ latest proposal would provide workers with a substantial 10 percent raise upon ratification, followed by four annual increases totaling 10 percent. With compounding, this proposal would result in wages approximately 21 percent higher by 2027 when compared to the present. It is worth mentioning that Ford and GM have also put forward similar proposals, offering raises totaling 20 percent in their most recent public offers.

Working Towards a Reasonable Solution

Stewart revealed that the union presented a counter-offer on Thursday night before the deadline, but Stellantis found it neither “acceptable” nor “affordable”. He emphasized that agreeing to these terms would put the company’s stability at risk. Stewart expressed the need for both the company and the union to collaborate and find a reasonable solution that satisfies both parties’ interests.

Clarity on Mopar’s Future

Stellantis made an announcement on Saturday stating that their latest offer aims to eliminate the differing wage scales at Mopar parts facilities. Rich Boyer, the Vice President of UAW’s Stellantis department, had previously claimed that the company intended to close six Mopar sites. The UAW also alleged that Stellantis wishes to retain the unilateral authority to close or sell off 18 facilities, including assembly plants, powertrain plants, and parts depots.

To address these concerns, Stewart provided clarification regarding the company’s plans for Mopar. He stated that the proposal primarily focuses on updating and modernizing their operations, particularly within Mopar. The aim is to enhance the efficiency of part distribution centers (PDCs) while preserving all existing jobs. Stewart emphasized that there will be no job eliminations, as the company plans to revamp older PDCs that are in need of modernization.

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