Stellantis Sends Economic Proposal to United Auto Workers
Stellantis, the automaker formed by the merger of Fiat Chrysler and PSA Group, has made its first economic proposal to the United Auto Workers (UAW) as the union considers the possibility of a strike for better wages.
According to the proposal sent on Friday, Stellantis is willing to provide wage increases for each year of the contract, amounting to a total of 14.5%. Additionally, the company is offering a one-time inflation-protection payment of $6,000 for the first year of the contract, as well as $4,500 in inflation protection payments over the next three years.
"In percentage terms, this opening offer is larger than where we ultimately landed in 2019," stated Mark Stewart, the chief operating officer of Stellantis North America, in a letter to the union.
Moreover, Stellantis is proposing to make Juneteenth a paid holiday, aligning with the federal government's decision to declare June 19th a national holiday in 2021.
The wage increase also extends to supplemental employees who would see a starting rate of $20 per hour, up from the current $15.78 per hour. The proposal aims to potentially shorten the time it takes for employees to reach the maximum wage rate by two years.
The UAW has been pushing Stellantis and other Detroit car companies to grant its factory workers a 40% pay hike in the upcoming four-year labor contract, which would be the largest increase in recent memory.
UAW President Shawn Fain will address the proposal and other related matters in a Facebook webcast scheduled for Friday evening.
In the face of a lack of progress in negotiations, Fain has warned that the UAW is prepared to strike against any automaker that fails to reach a new deal before the contracts expire on September 14.
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