The United Auto Workers have had an ongoing and constantly growing strike against the Detroit Big Three. This week they have made significant growth, moving forward towards a deal with Stellantis. Stellantis is the parent company of Jeep, Ram, and Dodge. This means these manufacturers will be moving significantly closer towards full capacity manufacturing again. Thus far, no deal has been formally closed, but the tentative agreement is extremely promising. This agreement would wrap up the six weeklong strike, at least against Stellantis. The United Auto Workers have already said that they are hopeful that this agreement will lead to an even better, stronger deal in four and a half years when this new contract would be ending.
The President of the UAW Union, Shawn Fain, and the Vice President of the UAW union, who leads the Stellantis Department, held a press conference to discuss some details of the agreement before formally signing it into action. The agreement would include significant investments in battery plants, economic improvements, and other items that would make a transition to electric vehicle manufacturing much smoother for employees.
The deal partially mimics that which was secured by Ford Motor Co’s United Auto Worker union members.
Furthermore, the deal would bring about a 27% highest base wage increase, as well as cost of living adjustments, shorter paths to reach highest earning wage, commitments for rollovers for temporary employees, and an easier path for employees to unionize. Fain went so far as to describe the deal as “the most lucrative contract our union has won in decades.” He spoke proudly of the fact that the deal even benefitting nonunion employees, who would also be receiving raises in turn. He spoke in a way suggesting the power and suggest of striking, explaining how companies are now so concerned about preventing another “attack” from the United Auto Workers Union, that they are scrambling to raise pay and better working conditions.
Analysts who predicted outcomes of the strike even released statements about the shocking, historic deal.
One professor from the University of California, Berkeley, said this deal will “define major gains for the UAW workers.” In the past, auto union deals tended to set the precedent for union deals in other industries. Many look towards the future with hope that this trend continues, and we see working conditions for the average American better and pay increase.
