Stellantis: Stellantis and the UAW reach an agreement in principle


by David Shepardson and Joseph White

(Reuters) – The United Auto Workers (UAW) reached a tentative agreement with Chrysler parent Stellantis on Saturday, the UAW said.

The agreement reached with Stellantis follows the broad outlines of that concluded a few days ago by the UAW and Ford, including a 25% salary increase over 4 and a half years.

Under the terms of the agreement, a plant of the group in Illinois must also reopen, said Shawn Fain, president of the UAW. The Stellantis factory in Belvidere closed this year, leaving 1,300 employees without jobs.

Shawn Fain promised to reverse this decision and the government of Joe Biden and the state of Illinois offered to guarantee subsidies to modernize the factory. Illinois also acquired 70 acres of land adjacent to the assembly plant.

No compromise has yet been reached between General Motors and UAW negotiators.

Shawn Fain said the union would expand its strike at GM’s Spring Hill, Tennessee, plant. “We are disappointed by GM’s unnecessary and irresponsible refusal of a fair deal,” he said in a statement sent to Reuters.

Strikes in the US auto sector in support of wage demands have entered their seventh week.

(Written by Sayantani Ghosh; French version Camille Raynaud)

Copyright © 2023 Thomson Reuters

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