Negotiators from the United Auto Workers (UAW) union and Stellantis have reached a tentative agreement after six weeks of labor strikes, according to sources familiar with the matter. The terms of the deal are still subject to approval by UAW leadership before being announced publicly on Saturday. This agreement is modeled after the one reached between the UAW and Ford Motor earlier in the week.
UAW President Shawn Fain has been engaged in intense negotiations with Stellantis and General Motors (GM). Talks between the UAW and GM are expected to resume on Saturday. The UAW plans to meet with Stellantis union leaders to present the tentative agreement.
Sources report that Stellantis has made additional concessions to the UAW, which may include a new product for an idled assembly plant in Illinois. The union aims to announce the tentative agreement on Saturday, ending the targeted labor strikes that have lasted for six weeks.
The UAW recently reached an agreement with Ford, but it still needs to be approved by union leaders and members. Ford’s deal includes pay increases, reductions in the time it takes to reach top wages, and enhanced benefits.
The strikes have had a significant financial impact on GM, Ford, and Stellantis, costing them billions of dollars in lost production. Ford estimates that the strike has cost them $1.3 billion, and the ratified deal would increase labor costs by approximately $850 to $900 per vehicle produced. GM has reported losses of around $800 million due to the strike.
The UAW’s approach to negotiations this year has been more confrontational and strategic compared to previous years. They chose to negotiate with all three automakers simultaneously instead of individually, aiming for better bargaining power and pattern bargaining.
The exact impact of these labor deals on the companies’ labor costs is not yet known. The automakers have expressed concerns about the potential effects on their competitiveness and long-term viability. Deutsche Bank estimates that Ford’s agreement will increase labor costs by $6.2 billion, GM by $7.2 billion, and Stellantis by $6.4 billion over the term of the agreements.
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