- GM and Stellantis have tentative agreements with the UAW.
- Workers will return to factories while the ratification process begins.
- Both deals secured significant pay raises for union members, and significant production delays should be averted by the agreements.
UAW Announces Tentative Agreements With Stellantis and GM, Ending Strikes
With agreements reached across the board, all that remains is for UAW workers to ratify the deals
Just days after it reached a tentative agreement with Ford, the United Auto Workers union has entered similar agreements with Stellantis and General Motors. Of the Stellantis agreement, UAW President Shawn Fain said, "Not only did we not lose those 5,000 jobs, we turned it all the way around. By the end of this agreement, Stellantis will be adding 5,000 jobs."
The terms of the Stellantis agreement are largely similar to those with Ford. The UAW and Stellantis agreed to a 25% base wage increase through April 2028 when the contract expires. Combined with cost-of-living adjustments (or COLA), the UAW’s Stellantis top wage tier surpasses Ford’s, at more than $42 per hour. Starting wages rise by 67% (including estimated COLA) to more than $30 per hour. Stellantis’ lowest-paid temporary workers will see a 165% pay increase over the life of the agreement. At Mopar, Stellantis’ in-house parts division, some workers will see a 76% pay increase upon ratification.
GM and the UAW have also reached a tentative agreement — one that will follow the same ratification process as the others while striking union members return to work. Top-earning GM workers will make $42 per hour, and starting wages rise by 70% with COLA to more than $30 per hour. GM has also agreed to make five payments of $500 to current retirees and surviving spouses, a benefit not had by UAW workers in more than 15 years. Like the other agreements, the GM deal restores COLA, abolishes wage tiers, and institutes a three-year wage progression. The GM deal also includes employees working under GM Subsystems LLC, which sorts and distributes parts for other plants, and Ultium Cells, GM’s electric vehicle battery production arm.
The ratification process for the GM and Stellantis deals is identical to the one for the Ford deal. The UAW will send its striking workers back to factories while the agreements are ratified. The respective agreements will be ratified via the UAW National Stellantis and National GM Councils, which will send the agreements to locals and their members, who will discuss and hold ratification votes. The UAW has detailed the process in the image above.
The UAW strike is more or less at an end, with union members receiving significant pay increases. For consumers, that means minimal, if any, disruptions in vehicle supply.