The proposal compares to initial offers of 15% by Ford Motor Co. and 16% by General Motors, though Stellantis wants to structure the raises in a way that would have a larger effect on workers’ future earnings.
September 08, 2023 01:06 PM
Stellantis on Friday gave the UAW a contract proposal that would raise hourly workers’ pay 14.5 percent during the next four years.
That compares to initial offers of 15 percent by Ford Motor Co. and 16 percent by General Motors, though their proposals called for some of the increases to be paid in lump sums. Stellantis said the full 14.5 percent would be given through hourly pay increases that carry forward into future years.
Stellantis said it would give workers $10,500 in inflation-related bonuses, including $6,000 in the first year of the deal. That compares to $11,000 at GM and $12,000 at Ford.
A summary of Stellantis’ offer, which the company made public Friday, did not mention any ratification bonus. Both GM and Ford said they would give workers $5,500 upon ratification of new contracts.
“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.,” Stellantis North America COO Mark Stewart wrote in a letter to employees. “It also protects the company’s future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles.”
Stellantis matched the GM and Ford proposals to raise temporary workers’ starting pay to $20 per hour and reduce the amount of time it takes new hires to reach top wages from eight years to six. Stellantis currently starts temps at $15.78 per hour.
Like GM, Stellantis said it would add Juneteenth as a paid holiday.
The UAW did not immediately comment on the Stellantis offer, though it was highly critical of the similar proposals from GM and Ford. President Shawn Fain planned to speak to members on a Facebook livestream Friday afternoon.
The union last week accused GM and Stellantis of bargaining in bad faith in the lead-up to next week’s contract deadline. It filed charges against the two companies with the National Labor Relations Board.
Ford made the UAW a new offer Thursday but has not said what changed from the proposal it presented last week.
The UAW has said it will send its nearly 150,000 employees at the Detroit 3 out on strike if it doesn’t have new deals with the companies in place when their current contracts expire Sept. 14.
