Stellantis, the multinational automaker, has proposed a four-year deal that includes significant wage increases for its hourly workers represented by the United Auto Workers (UAW). The offer includes a 14.5% wage increase over the four-year term for most of Stellantis’s approximately 43,000 UAW-represented hourly workers. Newer employees would receive a 27% boost to their starting wages and a shorter advancement period to reach the maximum wage rate.
The proposed deal also includes a $6,000 one-time “inflation protection payment” in the first year and a total of $4,500 in additional payments over the following three years. It also designates Juneteenth as a paid holiday for workers covered by the agreement.
Stellantis’s offer aims to avoid a costly strike as the current contracts between the UAW and the Detroit automakers, including Stellantis, are set to expire. Union leaders have threatened strikes if no deal is reached before the deadline.
While the proposed wage increase is larger than those offered by General Motors and Ford Motor, it falls short of the UAW’s demands, which include a 40% hourly pay increase, a 32-hour workweek, and the restoration of traditional-style pension plans.
Negotiations are ongoing between Stellantis and the UAW, with the hope of reaching an agreement before the deadline. If no deal is reached, the UAW has indicated that it will take appropriate action.
