US Stellantis Reaches Tentative Labor Agreement... GM Faces Strike Expansion

The United Auto Workers (UAW) in the United States reached a tentative agreement with Stellantis following Ford, leading to the withdrawal of the strike. However, the strike expanded at General Motors (GM). This move is interpreted as an effort to pressure GM, the remaining company among the Big Three that had not yet reached a tentative agreement after two companies simultaneously went on strike.

[Image source=AP Yonhap News]

According to CNN and others on the 29th (local time), UAW reached a tentative agreement on new labor contract negotiations with Stellantis the previous evening. This is the second negotiation settlement announced within three days, following Ford, which was the first among the Big Three automakers to reach a tentative agreement after simultaneously striking.

Stellantis is the world's third-largest automaker, owning 14 brands including Chrysler, Jeep, and Citro?n across the United States and Europe. The tentative agreement was decided at a level similar to the previously settled agreement with Ford. It includes a 25% increase in base wages and provisions for cost-of-living wage adjustments reflecting future rapid inflation.

Accordingly, the 14,600 UAW union members striking at Stellantis are expected to return to work within a few days. UAW President Shawn Fain expressed in a video posted on X shortly after, "I am pleased to announce the union's victory on the 44th day of the stand-up strike."

On the other hand, UAW decided to expand the strike at GM plants the same night. This is a measure to pressure GM, which has not reached a tentative agreement, to accept the negotiation terms. About 4,000 UAW union members are joining the strike at the GM plant located in Spring Hill, Tennessee. This plant produces Cadillac and GMC brand sport utility vehicles (SUVs).

Regarding the strike expansion, GM stated, "Considering the progress we have made, we are disappointed by UAW's (strike expansion) action," adding, "Our goal is to reach an agreement as soon as possible." President Fain did not mention GM separately in the video confirming the tentative agreement with Stellantis.