Stellantis Proposal to UAW: Nearly 21% Raises and the End of Wage Tiers in Historic Showdown with Detroit Automakers

Stellantis, the parent company of Jeep, has made a new proposal to the United Auto Workers (UAW) that includes significant raises and an end to wage tiers. The proposal, which aligns with those from Ford and General Motors, offers nearly 21% in pay increases over the course of the contract, starting with an immediate 10% raise.

Raise and End to Wage Tiers

Stellantis’ proposal aims to eliminate wage tiers for certain workers and provide a path for higher pay. It also continues to offer profit sharing to workers. The details of the proposal were released by the company on Saturday.

Company’s Perspective

The company’s Chief Operating Officer, Mark Stewart, emphasized that the company has been careful to listen to the UAW’s demands and come up with the best offers that protect both the company and its employees.

Standoff and Strike

The UAW’s negotiations with Stellantis, Ford, and General Motors reached a critical point on Friday, leading to work stoppages after the Thursday deadline passed without an agreement. Walkouts occurred at key plants, and the UAW has the ability to expand the strike if necessary.

Union’s Demands

The UAW has been seeking various improvements, including 40% hourly pay increases, a reduced workweek, traditional pensions, the elimination of wage tiers, and cost-of-living adjustments. The union has not yet commented on Stellantis’ latest proposal.

Negotiations and Resumed Talks

Ford and General Motors restarted negotiations on Saturday after a day without talks. Stellantis plans to resume negotiations on Monday.

New Proposal Details

Under the new proposal, starting pay for supplemental employees would increase by nearly 27% to $20 an hour. Stellantis aims to cut the timeline for ascending the hourly wage scale in half to four years for all full-time hourly employees. The wage-tier system would be eliminated entirely for the company’s Mopar division.

Commitment to Employees and Bargaining

Stellantis has committed over $1 billion to improve pension and retirement savings plans for current and retired employees. The company also addressed concerns about facility closures, emphasizing its commitment to running parts distribution centers efficiently and increasing resources for electric vehicles. The company stressed the need for a financially feasible agreement to remain competitive.

President Biden’s Statement

President Joe Biden urged the companies to improve their offers, considering their record profits, to reach a strong contract agreement.