Stellantis and UAW Near Deal to End Strike

Stellantis and UAW Close to Agreement

Chrysler parent company Stellantis and the United Auto Workers (UAW) are on the verge of finalizing a deal to end the six-week-long strike, according to sources familiar with the matter. The negotiations, which have been ongoing, could be concluded as early as Saturday. This development comes after Ford Motor became the first of the Detroit carmakers to settle the strikes and may set the pattern for new UAW contracts with General Motors (GM) and Stellantis.

Talks Resume Between Stellantis and UAW

Talks between Stellantis and the UAW are set to resume on Saturday morning in Detroit after extensive discussions on Friday. The meeting on Saturday is expected to result in a tentative agreement, marking a significant step towards resolving the strike. Meanwhile, negotiations between the UAW and General Motors are still ongoing.

Key Economic Terms and Remaining Issues

Both GM and Stellantis have agreed to match Ford’s key economic terms, which include a 25% wage hike. However, some crucial issues, such as the use of temporary workers, are still being discussed. These issues need to be resolved before a final agreement can be reached.

Stellantis’ Offer to Reopen a Factory

Stellantis has made an offer to reopen a closed factory in Belvidere, Illinois, and establish a new battery plant, according to sources. This move is seen as an effort to address some of the concerns raised during the negotiations.

Stock Market Impact

Following these developments, GM’s shares closed down 4.6% at $27.22, while Stellantis’ shares closed down 2.4% at $18.04 in New York.

Ford Agreement and UAW’s Perspective

Ford’s agreement with the UAW, which still needs to be ratified by union members, includes a 25% wage hike over a 4-1/2-year contract, increased retirement contributions, and the elimination of lower-pay tiers for certain workers. The UAW stated that when considering compounding and cost-of-living mechanisms, the total pay hikes exceed 33%.

Financial Impact on Ford

According to Ford Chief Financial Officer John Lawler, the strike has cost the automaker $1.3 billion in earnings and resulted in a loss of 80,000 vehicles.

In conclusion, Stellantis and the UAW are inching closer to a resolution that could end the strike. The negotiations between the two parties have progressed significantly, and a tentative agreement may be reached soon.