UAW reaches tentative agreement with Stellantis
Temporary workers will convert to full-time; new jobs, immediate raises to follow ratification
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For months, United Auto Workers President Shawn Fain has declared the negotiations between the union and the Big 3 American automakers the defining moment of this generation. The union was determined to win at the bargaining table, and for 44 days, the members conducted a stand-up strike against the companies.
On Oct. 28, the UAW declared victory and announced a tentative agreement with Stellantis. Now, it is up to the membership to decide if the gains through negotiation are enough.
“The days of low-wage, unstable jobs at the Big 3 are coming to an end,” said Fain. “The days of the Big 3 walking away from the American working class, destroying our communities, are coming to an end. We truly believe that we got every penny possible out of this company. We left nothing on the table. We couldn't be more proud and honored to bring this tentative agreement for a vote.”
Fain and UAW Vice President Rich Boyer addressed the membership on Facebook on Oct. 28, detailing some of the features in the proposed contract. The list is extensive, ranging from large wage increases, the elimination of wage tiers, the conversion of temporary workers to full-time status, the return of an annual Cost of Living Allowance (COLA) automatic wage increase, improvements to retiree benefits, the right to strike against plant closures and product eliminations, and the re-opening of Belvidere Assembly and commitment to construct an electric vehicle battery plant in that Illinois community.
“The stand-up strike showed the incredible power of regular, working-class people to fight for economic justice and win big,” said Fain. “We've achieved what just weeks ago we were told was impossible. Over the 44 days we were on strike, Stellantis more than doubled the total value of the proposals they had on the table. We not only secured a record contract, we have begun to turn the tide on the war on the American working class. We truly are saving the American dream.”
Now that the UAW has reached a tentative agreement with Stellantis, representatives from the UAW’s National Stellantis Council – leaders from across the locals serving members at the company – will travel to Detroit to review the agreement on Thu., Nov. 2. If they agree to the terms, the UAW will hold an informational presentation on Facebook that evening to spell out every detail of the proposed agreement to the membership.
Following that presentation, regional informational meetings will be held to answer questions from the membership. A vote of the entire UAW Stellantis membership will take place shortly after those meetings.
The changes to temporary workers in the proposed contract will impact Kokomo significantly. The hundreds of employees held to lower wages and lesser benefits while working alongside full-time employees will no longer be forced to work in temporary status.
Boyer was particularly proud of the effort that resurrected the Belvidere Assembly Plant. More than 1,200 employees lost their jobs when the plant idled earlier this year.
“This company ripped the hearts out of that community,” said Boyer. “Stellantis didn't care. Brothers and sisters, we made them care. From the day I heard they were coming after Belvidere, I swore one thing. We weren't going to let them kill another working-class community.
“It is my great honor to announce that we saved Belvidere with the strength of our stand-up strike. We will bring back thousands of jobs to Belvidere. We have won a new vehicle for Belvidere. It will be a midsize truck, and we will have two shifts. In addition, we'll also be adding over 1,000 jobs at a new battery plant in Belvidere.”
Boyer added that all displaced Belvidere employees will be placed on temporary lay-off, qualifying them for sub-pay and healthcare benefits until the plant resumes operation. And, all former Belvidere employees who were previously displaced and relocated to other plants across the country will be given the right to return to Belvidere.
The union also won product commitments that preserve jobs at Stellantis’ Trenton Engine and Toledo Machining facilities. Boyer stated that the total new investment from Stellantis will exceed $19 billion over the course of the agreement.
“For decades, temps at the Big 3 have been abused and exploited,” said Fain. “Over the life of the contract, some current Stellantis temps will see raises of up to 168 percent. And the system of ‘perma-temps,’ where this company keeps thousands of our members in permanent lower-class status, will end immediately upon ratification.
“Thousands of temps will be converted. No one will remain a temp for more than nine months after ratification. In fact, the amount of money we won in gains for temporary workers in this contract is more than the total amount in gains we won for everyone in the 2019 agreement. That is the power of our stand-up strike.”
The UAW called on idled workers at Toledo Assembly, the MOPAR parts depot, and Sterling Heights Assembly to return to work while the membership considers the tentative agreement. The union reached a tentative agreement with Ford Motor Co. earlier in the week, and those members are going through the ratification process.
The stand-up strike continues against General Motors, and the union called upon members at GM’s Spring Hill Assembly Plant in Tennessee to walk out, adding more pressure to the manufacturer. It is expected that the company will seek to settle on terms similar to those at Ford and Stellantis in short order.
“UAW members across the country just showed the entire world the power that workers have when they go on strike. For decades, we've been fighting with one hand tied behind our backs. Sometimes it felt like both arms.
“With this agreement. We're going from defense to offense. We're going from the managed decline of the American working class to a new era of auto manufacturing. They told us for years that the electric vehicle transition was a death sentence for good auto jobs in this country. We stood up and said no. With this agreement, we're proving them all wrong.”