Two down, one to go

On Saturday, the UAW and Stellantis announced a tentative labor agreement – so if it’s one, two, three strikes you’re out, then the count currently sits at 0-2.

The four-and-a-half-year deal, which largely mirrors the template set by the UAW and Ford late last week, includes:

• Higher wages: When compounding and cost-of-living are factored in, workers will receive pay hikes amounting to more than 33% over the life of the contract, including an immediate 11% bump. The deal also includes increases in 401(k) contributions and enhanced benefits for those who have pensions.
• More union jobs: As part of the tentative deal, Stellantis has agreed to reopen a previously shuttered plant in Belvidere, Illinois, in addition to committing to keep an engine plant in Trenton, Michigan, open and to keep and expand a machining plant in Toledo, Ohio. Per the union, these moves will create up to 5,000 new UAW jobs.

🤔 What about GM?... Talks between GM and the UAW have intensified in recent days (so a third deal may be close). Reuters reports the remaining sticking points include retirement benefits and issues related to temporary workers, since GM has more retirees than either Ford or Stellantis and increases to pension benefits for workers hired before 2007 cost GM more than its rivals.

👀 Looking ahead… Any deal between the automakers and UAW leaders still needs to be approved by UAW members before it becomes official. As of late yesterday afternoon, these votes had not yet been scheduled.