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Stellantis, UAW Reach Tentative Deal on New Labour Contract

Shawn Fain and UAW members picket in front of a Stellantis plant
Photo: YouTube / UAW
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Derek Boshouwers
No surprise, the deal is very similar overall to the Ford-UAW agreement

The United Automobile Workers union has reached a tentative deal with Stellantis on a new labour contract. This is reported by the New York Times, citing a “person familiar with the matter”.

After the agreement earlier this week between the UAW and Ford, it was expected that that might precipitate a similar deal with Stellantis, and so it turned out. The two agreements have many similar or identical elements. Among them, a 25-percent wage hike for union members, as well as potential adjustment depending on the level of inflation.

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

And now, all eyes turn to General Motors, the last of the Big Three with no new labour contract agreement in place with the UAW. Given the pattern set by the Ford and Stellantis agreements, the negotiating teams should have a much shorter path to arriving at a deal there as well. In fact, the Politico outlet cites three persons familiar with the matter confirming that a deal with GM is already close.

Negotiations between the UAW and Stellantis, GM and Ford began began in July, as the existing contract was set to expire. The automakers entered those negotiations intent on limiting labour cost increases, given that other companies like Tesla, Toyota and Honda operate non-union assembly plants in the U.S. The development of new technologies and products related to the shift to electric mobility has also been – and continues to be – massively expensive.

The union for its part has sought to gain back some of what it gave away in concessions during negotiations for the previous contract, at a time when the Big Three were struggling far more than they are today.

Derek Boshouwers
Derek Boshouwers
Automotive expert
  • Over 5 years' experience as an automotive journalist
  • More than 50 test drives in the past year
  • Participation in over 30 new vehicle launches in the presence of the brand's technical specialists