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UAW, Stellantis reach tentative deal to end strike, Illinois plant may reopen, sources say
Joseph White October 28, 20231:03 PM EDTUpdated 34 min ago

Jeep Gladiator UAW and Stellantis Reach Tentative Agreement QEYDWOG7O5J2VEPDKV7IG25O24


File photo: A general view of Stellantis' Belvidere Assembly Plant, in Belvidere, Illinois, U.S., June 27,

Oct 28 (Reuters) - United Auto Workers reached a tentative agreement with Stellantis (STLAM.MI) on Saturday, a deal that is pending approval from the union's top leaders and includes reopening the automaker's Illinois plant, two people familiar with the matter said.

The proposed accord is likely to follow a template set just days ago by the UAW and Ford (F.N), including a 25% wage hike over the 4-1/2-year contract, starting with an initial increase of 11%.

No public deal announcement is expected until later Saturday afternoon or early evening, the sources said. Strikes have entered week seven.

Stellantis shuttered its assembly plant in Belvidere, Illinois, early this year, leaving 1,300 workers without jobs.

UAW President Shawn Fain vowed to reverse the decision, and the union criticized Stellantis management over the issue in a lengthy video. The Biden administration and the state of Illinois have offered subsidies that could help re-tool the factory. Illinois acquired 170 acres of land adjacent to the assembly plant.

UAW is expected to unveil details of the tentative deal later on Saturday, which will have provisions on the use of temporary workers, the sources said, adding Stellantis has agreed to significant product commitment and investment.

Fain and other senior union leaders are expected to have a video conference with local UAW officials who will explain the contract terms to workers, the sources said.

The deal to reopen the Belvidere plant is contingent on expected state and local tax incentives, they said.

The deal is expected to include investments in other U.S. plants, including the Trenton engine plant, sources said. The plant, south of Detroit, is a 71-year old facility that builds six cylinder engines.

Talks with General Motors (GM.N) were ongoing. Negotiators for company and the union were expected to re-convene around noon after working into the early hours of Saturday morning, the sources said.

Some 45,000 workers out of nearly 150,000 union members at the Detroit Three eventually joined the strike, which has cost billions of dollars to the industry.

Talks with GM and Stellantis have been protracted because of issues such as pension and how fast temporary workers would get permanent work, sources have said.

Fain repeatedly accused the Detroit Three automakers of enriching executives and investors, while neglecting workers and said the UAW's success would help blue collar workers throughout the country.

The Detroit automakers argued that the UAW's demands would significantly raise costs and put them at a disadvantage compared with EV leader Tesla (TSLA.O) and foreign brands such as Toyota Motor (7203.T), which are nonunionized.

Ford expects the new contract will add $850 to $900 in labor cost per vehicle. Tesla already had a labor cost advantage of roughly $20 per hour before the UAW and the Detroit Three automakers began their bargaining, analysts have said.

The UAW has said the Ford deal would amount to total pay hikes of more than 33% when compounding and cost-of-living are factored in.

The strike which began at relatively unimportant plants spread to the biggest money-makers, producing pickup trucks and SUVs, ratcheting up the pain.

The UAW eventually struck against eight plants, most recently GM's Arlington, Texas, assembly plant, which makes the Chevy Tahoe and Suburban, Ford's Kentucky Truck heavy-duty pickup factory and Stellantis' Ram pickup plant in Sterling Heights, Michigan.

The UAW's initial demands had included 40% pay increases, cost-of-living adjustments pegged to inflation, job or pay guarantees, an end to lower wages for lower seniority workers and defined benefit pensions.
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kubankevin

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That took way longer than it should have. Hopefully they approve it quickly and move on.
They’re going to return to work before the deal even goes to vote just like the Ford workers did because nobody can survive on $500 a week pre tax.
 

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While I would like to see the autoworkers receive a fair package ( wage/benefits/hours/safety ), I don’t know of any industry that kept its workers on pace with the recent inflation; not even the minimum wage worker.
 

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All that striking and lost wages for a pretty average package. The real winner was the union in increasing their numbers by getting temps converted, and new employees for starting pay, but for an existing employee they got slightly better raises than last package and COLA. Too bad they'll still think the union did them some kind of solid instead of realizing that all they really did was lose 2 months pay to get a package they could have gotten with out striking.

I bet Tesla, Honda, and the other non-unionized plants are relieved to see the contract wasnt a UPS style win.
 

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Now the tough question.
Do they keep building the 23’s on the books and push back the 24’s production. Or do they cancel the 23’s and start the 24’s.
 

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While I would like to see the autoworkers receive a fair package ( wage/benefits/hours/safety ), I don’t know of any industry that kept its workers on pace with the recent inflation; not even the minimum wage worker.
True enough
 

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While I would like to see the autoworkers receive a fair package ( wage/benefits/hours/safety ), I don’t know of any industry that kept its workers on pace with the recent inflation; not even the minimum wage worker.
And that's why there have been over 300 strikes this year. Workers are seeing "record profits" everywhere but their paychecks and they're pissed.
 

RIPLER

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And that's why there have been over 300 strikes this year. Workers are seeing "record profits" everywhere but their paychecks and they're pissed.

Record profits while shipping less vehicles. The auto manufacturers knew the strike was coming and increased the price of the vehicles to cover the labor deal. Now they are going to increase the prices more and blame it on the labor deal. This is flat out price gouging and any other industry would have the government on their ass.
 

Mister Lamb

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Now the tough question.
Do they keep building the 23’s on the books and push back the 24’s production. Or do they cancel the 23’s and start the 24’s.
Hopefully the latter... My lease ends next year and I would like it if the 24s were out for a year by then so I could get one for cheap 😜
 
 



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