Stellantis says offer to UAW includes wage hikes totaling 14.5% for most workers
Stellantis says its first economic proposal for a new contract with the UAW would include wage increases totaling 14.5% without lump sum payments for “most represented employees.”
The automaker, which owns the Jeep, Ram, Chrysler, Dodge and Fiat brands, also announced proposals for “inflation-protection” payments amounting to $6,000 in the first year of the contract and $4,500 over the final three years of the agreement for all employees.
Supplemental and in-progression employees would also see gains under the proposal sent out on Friday. For supplementals, the starting wage would increase from $15.78 per hour to $20 per hour and in-progression employees would see the timeline for reaching the maximum pay rate drop from eight years to six.
Juneteenth would also become a paid holiday under the proposal.
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The United Auto Workers union reacted to the company proposal by posting a flyer on social media, titled "Stellantis finally responds," which noted that the company is "by far the richest of the Big Three automakers."
The flyer presented a comparison of union members demands vs. the proposal. It acknowledged the wage increase offer but said that doesn't make up for inflation or past losses. It also said that the company's union-represented salaried unit would only be eligible for lump sum payments.
The flyer said the company had rejected all union profit-sharing, pension, job security, retiree pay increase and quality-of-life proposals except Juneteenth. On cost-of-living adjustment requests, the union pointed to the lump sum proposal from the company as the response.
The union also noted that it sought a 90-day progression to the top pay rate rather than the six years proposed by the company.
The union, which has filed unfair labor practice charges against Stellantis and General Motors related to bargaining, had asked for a 40% pay increase, highlighting increases in CEO pay and billions of dollars in profits realized by the automakers in recent years.
"They have the money. They just don't want Stellantis workers to get our fair share," the flyer said.
The union is negotiating with Stellantis, Ford Motor Co. and GM ahead of the expiration of contracts next week. The union has indicated it is prepared to strike any automakers with which it does not have an agreement by the deadline.
More: UAW’s Shawn Fain calls GM’s contract counteroffer ‘insulting’: What’s in it
Mark Stewart, chief operating officer for Stellantis North America, touted the proposal in a letter to employees.
“This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the U.S. It also protects the company’s future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles. Because we know this is important to you and your families, we remain committed to bargaining in good faith and reaching a fair agreement by the deadline. With this equitable offer, we are seeking a timely resolution to our discussions,” the letter said.
Stewart described this as a "really good week at the bargaining table," saying the two sides had made "tremendous progress on hundreds of issues at the subcommittee level."
Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber.
This article originally appeared on Detroit Free Press: Stellantis says offer to UAW includes wage hikes totaling 14.5%
