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## Tentative Agreement on New Labor Contract Reached between UAW and Stellantis

The United Automobile Workers (UAW) union has reached a tentative agreement on a new labor contract with Stellantis, the parent company of Chrysler, Jeep, and Ram. This development, which was confirmed by a reliable source, marks a significant breakthrough in the ongoing negotiations between the union and automakers.

## Increasing Momentum for UAW

Just three days prior, the UAW and Ford Motor reached their own tentative agreement on a new contract. Remarkably, both deals share numerous similarities, including a substantial 25 percent general wage increase for UAW members. Additionally, the agreements allow for possible cost-of-living wage adjustments in the event of inflation.

The tentative agreement between the UAW and Stellantis must first be approved by a union council responsible for overseeing negotiations. Once this step is completed, it will then require ratification by UAW members.

## GM’s Ongoing Negotiations

With the recent agreement between Stellantis and the UAW, General Motors (GM) is now the only automaker that has yet to reach a resolution. As discussions continue, the pressure on GM to reach a favorable agreement that benefits its workers increases.

## Strike Actions and Production Halts

Since the expiration of the union’s contracts with all three automakers on September 15, the UAW has taken action by calling for strikes across various factories and spare-parts warehouses nationwide. Over 45,000 autoworkers have participated in these strikes, resulting in disruptions to production.

Most notably, the strike at Stellantis escalated on Monday with the UAW directing workers at a Ram plant in Sterling Heights, Michigan, to join the strike. This action has consequently halted the production of Jeep Wranglers and Jeep Gladiators at a Toledo, Ohio plant, as well as affected operations at 20 Stellantis parts warehouses.

## Pattern Bargaining and Wage Increases

The UAW has a long-standing practice of employing pattern bargaining when negotiating contracts with the three automakers. Following the trend set by the Ford agreement, the tentative deal with Stellantis aims to raise the top UAW wage from $32 an hour to over $40 within four and a half years. This adjustment would enable full-time employees to earn approximately $84,000 annually.

The aim of GM, Ford, and Stellantis during these negotiations is to manage labor cost increases. In comparison to other automakers such as Tesla, Toyota, and Honda, which operate nonunion plants in the United States, the three American giants already face higher labor costs.

Furthermore, these automakers are striving to control expenses while making substantial investments in the development of electric vehicles, battery plants, and factory retooling.

## Stellantis’ Strong Performance

Stellantis, an Amsterdam-based company resulting from the merger of Fiat Chrysler and Peugeot, has surprised analysts with its robust financial performance. Despite being the largest U.S. automaker in terms of sales, General Motors falls behind Stellantis in terms of profits. Stellantis earned 11 billion euros ($11.6 billion) in the first half of the year, while GM recorded nearly $5 billion in profit during the same period.

The negotiation process between the UAW and automakers has significant implications for not only the welfare of autoworkers but also the future of the American automotive industry. The AI legalese decoder can assist in navigating the intricacies of labor contracts and legal documents, ensuring clarity and understanding for all parties involved in these crucial negotiations.

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