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The UAW Hits Stellantis Where It Hurts, Expands Strike to the Group's Largest Plant

UAW Strike Begins at Stellantis' Ram 1500 Plant 10 photos
Photo: UAW on Twitter / autoevolution edit
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The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) convinced 6,800 members to strike. They essentially shut down the Sterling Heights Assembly Plant (SHAP) located in suburban Detroit. Here's why this matters.
Do you have a Ram 1500 on order? Well, you might have to deal with some delays. UAW members joined forces with fellow workers who started striking over a month ago. Stellantis employees at the Sterling Heights Assembly Plant exited the premises and confirmed they won't return to do their jobs until a fair deal is reached.

These employees made the Ram 1500 trucks in this part of Michigan, which currently is one of the auto group's best sellers. The UAW argues that the plant is Stellantis' biggest moneymaker.

The UAW already obtained a 23% raise from the "Detroit Three" (GM, Ford, and Stellantis) but still believes there's room for a little more. Initially, the union's negotiators asked for a raise of 46% and a 32-hour workweek with overtime pay for an extra day of work.

They also asked the automakers to eliminate tiers (like UPS already did), restore the old cost of living adjustment formula, reintroduce retiree medical benefits and raise their pay, recognize the right to strike over plant closures, and define a rewarding pension for all UAW members.

The organization, comprising over 150,000 members, also obtained the following:
  • massive wage tiers are to be eliminated, which means workers from different divisions will earn the same as those employed at more profitable locations;
  • an additional holiday (Juneteenth);
  • two weeks of paid parental leave;
  • a $3 increase to the pension multiplier and a boost for the 401(k);
  • a skilled trades tool allowance;
  • wage progression went from eight years to three years, but only at Ford (GM and Stellantis are still stuck on a four-year plan);
  • temporary workers will be eligible for profit sharing, but only at Ford;
  • hourly pay increase for temporary workers to $21 an hour and a conversion to full-time employee after 90 days, but only at Ford;
  • cost of living adjustment (COLA) is to be reintroduced as it was in 2009, but only at Ford.

The UAW will continue striking until bargaining results in a favorable outcome. We might see another surprise strike at GM soon enough, even though the auto giant agreed to place its battery-making business under the national agreement with the union.

When writing, the UAW strike is ongoing at seven assembly plants and 38 parts distribution centers. Over 40,000 employees have decided to join the picket lines or simply not attend work as scheduled.

The organization remains adamant about having Ford, GM, and Stellantis give the workers a fair share of the profits. Per the UAW, the Detroit Three made $21 billion in profits in the first half of 2023. The bargaining will most likely continue and the auto brands will have to offer more than they have already given.

"Don’t let them divide us. Don’t let them scare us. Don’t let them confuse us. Our cause is just, the money is there, and our strategy is working. Time is on our side. The American public is on our side. The facts are on our side. Stay ready to Stand Up," said UAW President Shawn Fain.

Stellantis is headquartered in the Netherlands and appeared after FCA and PSA merged. The group has 14 brands under its umbrella - Ram, Vauxhall, Opel, Peugeot, Maserati, Lancia, Jeep, Fiat, DS, Dodge, Citroen, Chrysler, Alfa Romeo, and Abarth.

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About the author: Florin Amariei
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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.
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