Negotiators from the United Auto Workers (UAW) union and Stellantis have reached a tentative deal after six weeks of targeted labor strikes. Although the terms of the agreement still need to be approved by UAW leadership, sources have indicated that the deal is similar to the agreement reached between the union and Ford Motor. UAW President Shawn Fain has been involved in intense negotiations with Stellantis, as well as General Motors (GM), with talks expected to resume with GM on Saturday. The union plans to hold a meeting with local Stellantis union leaders to discuss the terms of the deal, including concessions made by the company and a new product for an idled assembly plant in Illinois.
The tentative agreement is expected to end the series of labor strikes that have cost GM, Ford, and Stellantis billions of dollars in lost production. Ford’s agreement with the union included significant pay increases, reduced time to top wages, and enhanced benefits such as cost-of-living adjustments and the right to strike over plant closures. The strikes initiated by the UAW have been more confrontational and strategic than in recent history, and the union also broke from tradition by negotiating with all three automakers at once. While the exact increase in labor costs for the companies is unclear, Deutsche Bank estimates that the agreement at Ford alone would cost $6.2 billion over its term.
In summary, negotiators for the UAW and Stellantis have reached a tentative deal following weeks of targeted labor strikes. Similar to the agreement with Ford, the terms of the deal will undergo approval by UAW leadership, and further talks are planned with General Motors. The agreement is expected to put an end to the strikes that have caused significant financial losses for the automakers. The UAW’s strategy in negotiations has been more aggressive, and the union departed from previous practices by simultaneously negotiating with all three companies. Although the exact cost increase for labor is uncertain, estimates indicate that the agreement at Ford alone could amount to $6.2 billion.
