American union reaches deal with second major car manufacturer

This article was last updated on October 30, 2023

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American union reaches deal with second major car manufacturer

After Ford, car manufacturer Stellantis has also reached an agreement with the American trade union UAW. Stellantis builds cars for the Jeep brand in the US, among others. No deal has yet been reached with the third major car manufacturer, General Motors. There, the strike actions that have been going on for weeks are being expanded.

After a 44-day strike, UAW and Stellantis have agreed, among other things, to a 25 percent wage increase. That is less than the 40 percent the union initially demanded. The association’s members still have to vote on the agreement. As with Ford, with which an agreement was reached on Thursday, Stellantis’ deal with UAW runs until April 2028.

The 14,000 Stellantis employees who had been laid off were told they could return to work. This ends a six-week strike at the manufacturer.

At General Motors, employees are now increasing the pressure by laying off work at an additional assembly plant in the state of Tennessee. “We are disappointed in GM’s unnecessary and irresponsible refusal to reach a fair agreement,” UAW President Shawn Fain wrote in a statement. The company says it has negotiated in good faith with the union and still wants to reach an agreement as soon as possible.