The United Auto Workers (UAW) union announced over the weekend that it has reached a tentative new labour pact with Chrysler parent company Stellantis (STLA), ending a six-week strike.
The agreement, which must still be approved by the union’s membership, is similar to the four-year agreement reached between the UAW and Ford Motor Co. (F) on Oct. 25.
The union remains in contract negotiations with the other major Detroit automaker, General Motors (GM). On Oct. 28, the union announced that it was expanding its targeted strike to an additional General Motors assembly plant in Tennessee.
The collective agreement with Stellantis is reported to include 25% pay increases over the length of the agreement, including an initial increase of 11%. The top wage for workers rises to $40 U.S. an hour, including an increase of 68% for starting wages to $28 U.S. an hour.
Workers for Stellantis will also see cost-of-living adjustments reinstated and will be allowed to strike over plant closures and other issues.
The strikes have collectively cost GM, Ford and Stellantis billions of dollars in lost vehicle production.
Ford said last week when releasing its third-quarter financial results that the union’s strike had cost it $1.3 billion U.S.
Deutsche Bank (DB) recently estimated the overall cost increase of the new labour agreement at Ford to be $6.2 billion U.S. over the contract’s four-year term.
The stock of Stellantis has risen 33% over the last 12 months to trade at $18.04 U.S. per share.
