Demonstrators
during
a
United
Auto
Workers
(UAW)
practice
picket
outside
the
Stellantis
Mack
Assembly
Plant
in
Detroit,
Michigan,
US,
on
Wednesday,
Aug.
23,
2023.
Jeff
Kowalsky
|
Bloomberg
|
Getty
Images
Stellantis
said
Saturday
that
its
most
recent
proposal
to
the
United
Auto
Workers
includes
raises
of
nearly
21%
over
the
course
of
the
contract,
including
an
immediate
10%
pay
increase,
and
the
end
of
wage
tiers
for
some
workers,
the
latest
development
in
a
historic
showdown
between
the
big
three
Detroit
automakers
and
the
union.
The
Jeep
maker’s
proposal,
which
is
in
line
with
proposals
from
Ford
and
General
Motors,
would
also
continue
to
offer
profit
sharing
to
workers,
according
to
new
details
on
the
offer
released
by
the
company
Saturday.
“The
teams
have
been
very,
very
careful
to
listen,
very
careful
for
us
to
come
up
with
best
offers
that
we
can
do
that
also
protect
…
the
company,”
COO
Mark
Stewart
said
on
a
Saturday
call
with
reporters.
The
standoff
between
the
UAW
and
major
automakers
Stellantis,
Ford
and
General
Motors
reached
a
fever
pitch
Friday,
with
the
union
starting
work
stoppages
after
an
agreement
wasn’t
met
by
a
Thursday
night
deadline.
The
so-called
stand-up
strike
started
with
walkouts
at
three
key
plants
—
one
for
each
automaker
—
with
the
possibility
that
the
UAW
can
call
on
more
of
its
members
to
join
the
strike
if
needed.
The
union
has
been
seeking
40%
hourly
pay
increases,
a
reduced
32-hour
workweek,
a
move
back
to
traditional
pensions,
the
elimination
of
compensation
tiers
and
a
restoration
of
cost-of-living
adjustments,
among
other
items.
The
UAW
didn’t
immediately
respond
to
a
request
for
comment
about
the
proposal.
Meanwhile,
Ford
and
GM
resumed
negotiations
Saturday
after
no
talks
occurred
between
the
union
any
of
the
automakers
the
previous
day.
Stellantis
said
it
planned
to
pick
up
talks
again
Monday.
UAW
President
Shawn
Fain
said
earlier
this
week
that
Stellantis
had
previously
offered
a
17.5%
increase.
Under
the
new
proposal,
starting
pay
for
supplemental
employees
would
increase
by
$4.22,
or
nearly
27%,
to
$20
an
hour.
The
company
also
said
it
would
cut
the
timeline
for
ascending
the
hourly
wage
scale
in
half
to
four
years,
meaning
all
full-time
hourly
employees
would
reach
the
top
before
the
contract
expires.
Under
the
offer,
the
wage-tier
system
would
be
eliminated
entirely
for
its
Mopar
division,
which
is
known
for
service,
parts
and
customer
interfacing.
Stellantis
also
offered
an
inflation
protection
measure
within
compensation.
The
company
said
it
has
committed
more
than
$1
billion
for
improvements
in
the
pension
and
retirement
savings
plans
for
current
employees
and
retirees.
Stellantis
leadership
also
pushed
back
against
the
union’s
descriptions
of
the
automaker’s
plans
to
close
or
sell
18
facilities.
The
company
has
said
it
aims
to
run
parts
distribution
centers
more
efficiently
and
continue
shifting
resources
toward
electric
vehicles.
Jobs
in
these
plants
would
be
persevered,
the
company
said.
The
automaker
also
stressed
its
commitment
to
bargaining
and
reaching
an
agreement
that
is
financially
feasible,
echoing
concerns
raised
by
Ford
and
GM
leadership.
Ford
CEO
Jim
Farley
said
in
a
CNBC
interview
Friday
that
the
UAW
demands
would
force
the
company
to
“choose
bankruptcy
over
supporting
our
workers.”
Stellantis’
leadership
noted
that
the
company
needs
to
stay
competitive
with
automakers
that
don’t
have
unionized
employees.
“It’s
not
about
warfare,
it’s
about
win-win,”
Stewart
said.
“It’s
about
us
finding
something
that
is
great
for
our
folks
today,
able
to
keep
a
future
for
tomorrow
…
for
our
company
to
be
able
to
continue
the
investment
path
we
have
for
electrification,
and
for
our
U.S.
operations
to
be
strong
so
we
can
compete
against
the
transplants
and
we
can
compete
against
the
new
entrants.”
President
Joe
Biden
said
Friday
that
the
companies
should
improve
their
current
offers
to
ensure
a
strong
contract
is
agreed
on
amid
a
period
of
record
profits.
—
CNBC’s
Michael
Wayland
contributed
to
this
report.
