The Union of Auto Workers (UAW) and Stellantis, the auto manufacturing conglomerate formed by the merger of PSA (Peugeot-Citroen) and Fiat Chrysler, announced early this week a tentative agreement that will bring an end to the three months long strike of UAW members.
Talks began on September 15th, and the agreement was reached on Tuesday night. The tentative contract will now be presented to UAW’s Local presidents for a ratification vote, which is expected to take place in the coming days.
The agreement will bring an end to the longest strike in Stellantis’ history. The 8 plants of FCA in Michigan, Ohio, and Illinois went on strike after months of negotiations over wages, benefits, and job security. The agreement provides a four-year contract that includes wage increases, better job security, and improved benefits.
In addition, the agreement increases the flexibility of FCA in terms of hiring temporary workers, and provides more career opportunities for workers with improved wages and benefits. The agreement also eliminates any concept of two-tier wages, meaning all UAW members will receive the same wage and benefits regardless of tenure.
In addition, FCA is committed to investing $10 billion into its factories and equipment in the U.S., and creating over 7,000 new jobs in the plants. The focus of the investment will be on the most recent technological advancements in the auto industry, such as electric and hybrid drivetrains.
The agreement also includes a commitment to create more diversity within the workforce,including measures to eliminate hiring bias and increase diversity in leadership roles, as well as better support for women and under-represented workers in the automotive industry.
UAW president Rory Gamble highlighted the importance of the agreement, saying: “We are pleased to reach a tentative agreement with Stellantis that builds upon the economic and technological advancement initiatives we established with General Motors and Ford Motor Company and helps improve the workplace and working conditions.
The UAW’s announcement left the two million members of the union celebrating the results. The ratification process is expected to begin next week, and when passed, it will bring an end to the longest strike in Stellantis’ history.
