UAW and Stellantis reach tentative contract agreement

(DETROIT) — The United Auto Workers union and Stellantis announced Saturday they have reached a tentative agreement, more than 40 days after the union launched a strike against the big three U.S. automakers.

The development comes days after the UAW and Ford reached a tentative agreement.

“Once again, we have achieved what just weeks ago we were told was impossible,” UAW President Shawn Fain said in a statement.

According to the UAW, the tentative agreement includes 25% in base wage increases through April 2028 and will raise the starting wage to more than $30 an hour compounded with estimated cost-of-living allowances.

Stellantis North America COO Mark Stewart in a statement thanked “all the negotiating teams who have worked tirelessly for many weeks to get to this point.”

The UAW said its members will return to work at Stellantis while the agreement goes through the ratification process.

UAW represents nearly 44,000 workers at Stellantis, according to the union.

President Joe Biden called it a “groundbreaking contract” that offers “record raises, more paid leave, greater retirement security, and more rights and respect at work.”

“I applaud the UAW and Stellantis for coming together after hard fought, good faith negotiations to reach a historic agreement that will guarantee workers the pay, benefits, dignity and respect they deserve,” he said in a statement. “I want to applaud the UAW and Stellantis for agreeing to immediately bring back all of the Stellantis workers who have been walking the picket line on behalf of their UAW brothers and sisters.”

On Sept. 15, UAW members launched their strike against Ford, Stellantis and General Motors after they failed to reach a new contract agreement for plants in Michigan, Ohio and Missouri.

The so-called stand-up strike is still ongoing at GM, the UAW said.

The union represents approximately 150,000 workers across the big three automakers.

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