Stellantis and the UAW have entered a critical phase of negotiations. Decisions made during this process will either enable our workers and our Company to thrive or will take us backward and endanger the long-term competitiveness of our Company, negatively impacting our workers and our communities.
Unfortunately, the UAW’s leadership has decided to call a strike and publicly misrepresent several key elements of our offer.
We believe it is imperative to set the record straight and provide the facts of Stellantis’ highly competitive offer, presented on September 14.
Our goal is to secure a sustainable future that provides all our UAW-represented employees with an opportunity to thrive in a company that will be competitive during the automotive industry’s historic transformation.
21% Wage Increase
The offer currently on the table would provide Stellantis Hourly Employees with raises of nearly 21% compounded during this next contract, with an immediate 10% increase at the time of ratification. When it comes to profitability, our represented employees have shared in our success, and would continue to do so. During the term of the last agreement, full-time employees saw a total eligible profit-sharing amount of $44,700.
Additionally, we proposed increasing wages for all our Supplemental Employees with a new starting wage rate of $20 per hour – a $4.22 per hour, or 26.7%, increase.
4-Year Progression, Down from 8 Years
We have proposed ending the wage tier in our Mopar parts division and cutting the hourly wage progression timeline in half. This would bring all current full-time hourly workers to the top rate during this next agreement.
Inflation Protection
In addition to other forms of compensation, such as bonuses, profit sharing and our world class health care plans that carry no monthly premium, we have also proposed an inflation protection measure designed to offset the reduced purchasing power employees have faced over the last few years.
More than $1 Billion in Retirement Security Improvements
Retirement security commitments include over a billion dollars in funding and improvements to the pension and retirement savings plans for both current employees and retirees.
Facility Modernization
We have seen the comments from UAW leadership about plans to close 18 facilities, which is misleading without context.
To be clear, the vast majority of this proposal is to modernize our operations and enable us to run our parts distribution centers more efficiently, while preserving those jobs. In addition, it would protect our rights to consolidate or sell other underused real estate and facilities to lower our carbon footprint on the path to the Stellantis carbon net zero 2038 commitment.
We also continue to prepare for the electrified future, with plans to invest in two electric vehicle battery plants in the United States and multiple other plants including the Dundee Engine Plant and the Kokomo Casting Plant.
Negotiations and Bargaining – Where We Stand
We have delivered four comprehensive economic proposals to date. Our bargaining team continues to work days, nights and weekends in a responsible manner to fully understand and address each of the Union’s nearly 1,000 demands. Our team continues to take a serious and responsible approach to find creative solutions for each of these demands. We have listened and will continue to bargain in good faith until an agreement is reached.
When we work together, we win together. And we look forward to getting everyone back to work as soon as possible.
