UAW Reaches Tentative Agreement with Stellantis on New Labor Contract

The United Automobile Workers (UAW) union has reached a tentative agreement with Stellantis on a new labor contract. This is what the New York Times reports, citing a “person familiar with the matter”.

Following the agreement reached earlier this week between the UAW and Ford, it was expected that it would precipitate the conclusion of a similar agreement with Stellantis, and that is what happened. Both agreements have many similar or identical elements. Among them, a 25% salary increase for union members, as well as a potential adjustment depending on the level of inflation.

Just like for Ford, the new agreement with Stellantis must still be approved by the union council, then ratified by a vote of union members. Ratification is not a certainty, but let’s say it is quite likely in both cases.

All eyes now turn to General Motors, the last of the Big Three not to have reached a new labor contract with the UAW. Given the model established by the agreements with Ford and Stellantis, the negotiating teams should have a much shorter path to reach an agreement in this case as well. Moreover, the Politico site cites three people familiar with the matter who confirm that an agreement with GM is already on the verge of being concluded.

Negotiations between the UAW and Stellantis, GM and Ford began in July, when the existing contract was about to expire. Automakers entered these negotiations with the intention of limiting increases in labor costs, given that other manufacturers such as Tesla, Toyota and Honda operate non-union assembly plants in the United States. Developing new technologies and products related to the shift to electric mobility has also been – and continues to be – massively expensive.

For its part, the union sought to recoup some of the concessions it had made during previous contract negotiations, at a time when the big three were in far more trouble than they are today.