UAW union makes progress with 1 of 3 automakers as strike deadline looms
A worker assembles a Ford vehicle at the company's Chicago Assembly Plant (2010). Ford, General Motors and Stellantis are locked in negotiations with the UAW this week as a strike deadline looms at midnight Thursday
A worker assembles a Ford vehicle at the company's Chicago Assembly Plant (2010). Ford, General Motors and Stellantis are locked in negotiations with the UAW this week as a strike deadline looms at midnight Thursday
. File Photo by Brian Kersey/UPI | License Photo
Sept. 11 (UPI) -- Stellantis NV, the owner of Jeep and Chrysler, reached a partial agreement with the United Auto Workers union on Monday as a strike deadline looms that could cost the auto industry more than $1 billion.
The union and automaker reached a tentative agreement on health and safety issues, a positive step forward to handling other issues for their contract before the current one expires at midnight Thursday.
"There is still more work to do, but we know that Stellantis and the UAW have a shared interest in these discussions: reaching an agreement that secures the future for our employees and their families," said Tobin Williams, senior vice president of human resources of Stellantis North America in a note to workers.
"We are on a good path and remain committed to reaching a tentative agreement without a work stoppage that would negatively impact our employees and our customers."
Stellantis also sent a second proposal to the union on Monday. The first proposal to the union, which included a 14.5% pay raise to most employees was swiftly rejected. UAW President Shawn Fain rejected similar raise proposals from Ford and General Motors as inadequate with members facing inflation pressures.
The UAW proposal wants the automakers to make temporary workers into full-time after 90 days, give the union the right to strike over plant closures, and more paid time off, including recognizing Juneteenth as a holiday.
Ford wants the right to outsource any work at any time and GM and Stellantis have agreed to give workers paid time off during Juneteenth. All three so far have rejected all UAW changes to pension and retiree healthcare plans.
Sept. 11 (UPI) -- Stellantis NV, the owner of Jeep and Chrysler, reached a partial agreement with the United Auto Workers union on Monday as a strike deadline looms that could cost the auto industry more than $1 billion.
The union and automaker reached a tentative agreement on health and safety issues, a positive step forward to handling other issues for their contract before the current one expires at midnight Thursday.
"There is still more work to do, but we know that Stellantis and the UAW have a shared interest in these discussions: reaching an agreement that secures the future for our employees and their families," said Tobin Williams, senior vice president of human resources of Stellantis North America in a note to workers.
"We are on a good path and remain committed to reaching a tentative agreement without a work stoppage that would negatively impact our employees and our customers."
Stellantis also sent a second proposal to the union on Monday. The first proposal to the union, which included a 14.5% pay raise to most employees was swiftly rejected. UAW President Shawn Fain rejected similar raise proposals from Ford and General Motors as inadequate with members facing inflation pressures.
The UAW proposal wants the automakers to make temporary workers into full-time after 90 days, give the union the right to strike over plant closures, and more paid time off, including recognizing Juneteenth as a holiday.
Ford wants the right to outsource any work at any time and GM and Stellantis have agreed to give workers paid time off during Juneteenth. All three so far have rejected all UAW changes to pension and retiree healthcare plans.
United Auto Workers members walk in the Labor Day parade in Detroit, Sept. 2, 2019. Automaker Stellantis has made a counteroffer to the United Auto Workers that includes wage increases in each year of a new four-year contract totaling 14.5%. The raises, which would be for most workers, doesn’t include any lump sum payments.
(AP Photo/Paul Sancya, File)
September 11, 2023
DETROIT (AP) — Stellantis is reporting progress in talks with the United Auto Workers union with just three days left before contracts expire with Detroit’s three automakers.
Tobin Williams, head of human resources for North America, told employees in an email that the union made counteroffer to its economic proposal on Sunday.
Stellantis released no details of its offer Monday.
He also says both sides have reached agreement in a number of areas including health and safety.
“There was good energy among both teams and great momentum to reach an agreement as we head into the final days before the contract expires Thursday night,” Williams wrote. “We are on a good path and remain committed to reaching a tentative agreement.”
UAW President Shawn Fain on Friday called counter offers from Stellantis, General Motors and Ford inadequate. He warned of strikes against any company without a tentative contract agreement when the contracts expire at 11:59 p.m. Thursday.
On Monday, Fain said in a statement that all three companies waited until the last minute to make economic offers. “When the CEOs are ready to make a serious offer, we’ll be there, day or night,” he said.
On Friday, Stellantis, which was formed in a 2021 merger of Fiat Chrysler and France’s PSA Peugeot, made its first counteroffer to the union’s demands with a bigger pay raise than offers from Ford and General Motors. Stellantis offered wage increases in each year of a new four-year contract totaling 14.5%.
Last week Ford increased its offer from 9%, to 10% raises over four years, but it also included lump sum payments, while GM’s offered 10% plus lump sums. All three companies offered additional lump sum payments to cover inflation.
The proposal from Stellantis, which was formed in a 2021 merger of Fiat Chrysler and France’s PSA Peugeot, is closer to the union’s demands of 46% across-the-board increases over four years, but both sides still are far apart.
Fain said Friday that he threw the offers into the trash. “Things are moving but they’re moving very slow and we’ve got a long way to go in four days,” Fain said on a Sunday night video event.
The union has asked for 46% raises in general pay over four years — an increase that would elevate a top-scale assembly plant worker from $32 an hour now to about $47. In addition, the UAW has demanded an end to varying tiers of wages for factory jobs; a 32-hour week with 40 hours of pay; the restoration of traditional defined-benefit pensions for new hires who now receive only 401(k)-style retirement plans; and a return of cost-of-living pay raises, among other benefits.
Perhaps most important to the union is that it be allowed to represent workers at 10 electric vehicle battery factories, most of which are being built by joint ventures between automakers and South Korean battery makers. The union wants those plants to receive top UAW wages. In part, that is because workers who now make components for internal combustion engines will need a place to work as the auto industry increasingly transitions to EVs.
DETROIT (AP) — Stellantis is reporting progress in talks with the United Auto Workers union with just three days left before contracts expire with Detroit’s three automakers.
Tobin Williams, head of human resources for North America, told employees in an email that the union made counteroffer to its economic proposal on Sunday.
Stellantis released no details of its offer Monday.
He also says both sides have reached agreement in a number of areas including health and safety.
“There was good energy among both teams and great momentum to reach an agreement as we head into the final days before the contract expires Thursday night,” Williams wrote. “We are on a good path and remain committed to reaching a tentative agreement.”
UAW President Shawn Fain on Friday called counter offers from Stellantis, General Motors and Ford inadequate. He warned of strikes against any company without a tentative contract agreement when the contracts expire at 11:59 p.m. Thursday.
On Monday, Fain said in a statement that all three companies waited until the last minute to make economic offers. “When the CEOs are ready to make a serious offer, we’ll be there, day or night,” he said.
On Friday, Stellantis, which was formed in a 2021 merger of Fiat Chrysler and France’s PSA Peugeot, made its first counteroffer to the union’s demands with a bigger pay raise than offers from Ford and General Motors. Stellantis offered wage increases in each year of a new four-year contract totaling 14.5%.
Last week Ford increased its offer from 9%, to 10% raises over four years, but it also included lump sum payments, while GM’s offered 10% plus lump sums. All three companies offered additional lump sum payments to cover inflation.
The proposal from Stellantis, which was formed in a 2021 merger of Fiat Chrysler and France’s PSA Peugeot, is closer to the union’s demands of 46% across-the-board increases over four years, but both sides still are far apart.
Fain said Friday that he threw the offers into the trash. “Things are moving but they’re moving very slow and we’ve got a long way to go in four days,” Fain said on a Sunday night video event.
The union has asked for 46% raises in general pay over four years — an increase that would elevate a top-scale assembly plant worker from $32 an hour now to about $47. In addition, the UAW has demanded an end to varying tiers of wages for factory jobs; a 32-hour week with 40 hours of pay; the restoration of traditional defined-benefit pensions for new hires who now receive only 401(k)-style retirement plans; and a return of cost-of-living pay raises, among other benefits.
Perhaps most important to the union is that it be allowed to represent workers at 10 electric vehicle battery factories, most of which are being built by joint ventures between automakers and South Korean battery makers. The union wants those plants to receive top UAW wages. In part, that is because workers who now make components for internal combustion engines will need a place to work as the auto industry increasingly transitions to EVs.
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