Some UAW members have been sitting on the sidelines for 44 days. But now, they are asked to return to work. Stellantis and the union have found a solution poised to end the volatility. Here's the gist of it.
Despite what some opinionated netizens might think about UAW's "Stand Up" strike, it's important to remember that workers making our beloved cars had previously given up a couple of perks to help America's most important automakers survive the 2008 financial crisis and its outcomes.
It is their right to strike when things don't go in a favorable direction for everyone involved in the auto manufacturing industry. They were patient, bargained seriously, made their demands clear, acted methodically when it came to telling workers to leave their posts, and took a step back when needed.
That was proven through the tentative deal reached with Ford. Although the Blue Oval was the first of the Detroit Three to put more things on the negotiating table, it still needed more time to come up with something that worked for everybody.
Now, Stellantis – the home of 14 iconic American and European brands – has followed suit. UAW President Shawn Fain said the auto giant doubled its offer after the workers displayed unity and stuck together to achieve better pay for everyone.
The most important thing that came out of this deal, however, is not just a wage increase but putting the Belvidere plant back on track. A midsize truck and high-voltage batteries will be manufactured at the Indiana site. Employees will work in two shifts.
Previously, it served as Jeep Cherokee's manufacturing location. Earlier this year, over 1,200 were laid off.
Photo: UAW
At the same time, Stellantis wanted to reduce its workforce. According to the new deal, it will move away from that goal, and instead of laying people off, it will hire 5,000 workers who will become UAW members.
The tentative agreement also includes an immediate 11% pay increase for all Stellantis workers, which will materialize into a 25% wage increase over four years. The reintroduction of the old cost of living adjustment formula is also there, meaning those already earning the maximum hourly wage will get a 33% raise after four years.
The negotiated agreement establishes a 67% increase in new workers' pay, and lower-tier Mopar employees get an immediate 76% wage increase. Temporary workers will also receive a 168% raise, and most become full-time employees after the agreement enters into effect.
Moreover, the wage tiers will be gone, the pension multiplier will grow, the Trenton Engine Complex and Toledo Machining Plant will retain all its workers, and UAW members will be able to strike over plant closures and investments.
But things don't end here. UAW leaders will meet in Detroit to analyze the deal and decide if it should reach members. If they give it the green light, then members will see the full details and vote to either turn the agreement into a new national contract or go back to the negotiating table.
It remains to be seen what will happen. Until then, Stellantis' brands are going back to business as usual. As things go back to normal, parts should become available once again, and delivery times should shorten.
Car shows on TV and his father's Fiat Tempra may have been Florin's early influences, but nowadays he favors different things, like the power of an F-150 Raptor. He'll never be able to ignore the shape of a Ferrari though, especially a yellow one. Full profile
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