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  1. Topics & Tools
  2. Employment Law & Compliance
  3. Autoworkers Reach Agreement with Stellantis and GM
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News

Autoworkers Reach Agreement with Stellantis and GM

October 30, 2023

The red jeep wrangler is parked on a dirt road.

​The United Auto Workers union (UAW) recently agreed to tentative deals with General Motors and Stellantis, the parent company of Chrysler, Dodge, Jeep and Ram. We've collected a group of articles on the news from SHRM Online and other trusted sources.

Higher Wages

The Stellantis deal includes 25 percent hike in base wages through April 2028, and the starting wage will increase to over $30 an hour, according to UAW. Union members must ratify the deal.

The deal follows a six-week strike by more than 14,000 workers at Stellantis assembly plants in Michigan and Ohio, and at parts warehouses across the nation. The tentative agreement is patterned an agreement reached between the union and Ford Motor on Oct. 25. Both the Ford and Stellantis deals include a right to strike over plant closures.

Around 40,000 UAW members went on strike since their last contract with General Motors, Ford and Stellantis expired on Sept. 15. They shut down dozens of factories along the way, including GM's full-size truck plant in Arlington, Texas.

The contract with GM is similar to those reached by the other two automakers, but there are some differences.

(NBC and Associated Press)

Costly Strike

The UAW expects wages to rise by 33 percent for top earners at Stellantis, to $42 an hour. Percentage gains for entry-level workers and temps will be significantly higher: up to 165 percent pay increases for some lower-paid Stellantis workers. New workers will also reach top pay in just three years, instead of eight years.

The deal does not include a return to pensions and retirement benefits for all workers, but it does include increases in 401(k) contributions and enhanced benefits for those who do have pensions.

The UAW has separate contracts with the big three Detroit automakers, but historically the contracts tend to be similar.

The strike has hurt automakers. GM said the strike has cost it more than $800 million, while Ford pegged its losses at $1.3 billion.

(NPR)

Saving Jobs

The union said the Stellantis deal saves jobs at an engine plant in Trenton, Mich., a machining factory in Toledo, Ohio, and a factory in Belvidere, Ill., which Stellantis had planned to close.

About 1,200 workers will be hired back, plus another 1,000 workers will be added for a new electric vehicle battery plant.

(Associated Press)

Uptick in Strikes

The UAW strike is the union's first against all of Detroit's Big Three automakers simultaneously. It is the first national strike that Ford has faced since 1979.

General Motors said the strike cost it $200 million a week. The automakers warned that significantly increasing their labor costs will make it hard for them to compete against nonunionized rivals.

The UAW deals arrived during a period of heightened workplace activism in the United States. Fueled by a tight labor market, surging inflation and resurgent enthusiasm for unions, workers are striking in elevated numbers this year and reaping big results for their pocketbooks.

(SHRM Online)

GM Makes Deal in Canada, Actors' Strike Persists

General Motors and Unifor, the union representing Canadian autoworkers, reached a tentative contract agreement on Oct. 10, ending a one-day strike with about 4,300 workers at two General Motors factories and a parts warehouse in Ontario. The GM workers struck after Unifor workers ratified a new three-year labor contract with Ford in September.

Meanwhile, Hollywood actors continue to strike against the major studios. The strike has lasted at least 108 days. The two are getting close to agreeing on a deal. The screenwriters' union reached a deal with the studios on Sept. 27.

(SHRM Online and The New York Times)

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