Today: 14-04-2024

Stellantis on the Brink: Nearing UAW Agreement Following Intensive Negotiations

Stellantis and UAW on the Verge of Resolution: Potential Deal to End Six-Week Strike in Sight

Oct 27 (Reuters) — After weeks of intensive negotiations, Stellantis, the parent company of Chrysler, is on the brink of reaching a deal with the United Auto Workers (UAW) that could bring an end to a six-week-long strike, according to sources briefed by Reuters. The potential agreement, expected to be finalized as soon as Saturday, follows Ford Motor's recent breakthrough in negotiations, setting a precedent for the resolution of strikes involving 45,000 Detroit Three auto workers since mid-September.

Negotiations between Stellantis and the UAW were scheduled to resume at 10 a.m. in Detroit after extended talks on Friday. Sources indicate that the Saturday meeting might mark the conclusion of a tentative agreement. Talks between the UAW and General Motors were also ongoing past 9 p.m. on Friday.

While both GM and Stellantis have reportedly agreed to match Ford on crucial economic terms, including a 25% wage hike, certain unresolved issues, such as the utilization of temporary workers, remain pivotal points of discussion. Stellantis has proposed building a new vehicle at a closed Belvidere, Illinois factory and establishing a new battery plant, as disclosed by an informed source.

Market reactions were evident, with GM shares closing down 4.6% at $27.22, and Stellantis shares closing down 2.4% at $18.04 in New York.

The Ford agreement, which awaits ratification by union members, encompasses a 25% wage increase over the 4-1/2-year contract, enhanced retirement contributions, and the elimination of lower-pay tiers for specific operations. It also reduces the time required to reach top pay from eight to three years, while granting the UAW the right to strike over plant closures. The UAW estimates total pay hikes of over 33% when factoring in compounding and cost-of-living adjustments.

Ford's Chief Financial Officer, John Lawler, reported that the strike incurred a cost of $1.3 billion in earnings and 80,000 vehicles for the automaker.

Reporting by David Shepardson in Washington and Joseph White in Detroit Editing by Chizu Nomiyama, Peter Henderson, Matthew Lewis, and Raju Gopalakrishnan Our Standards: The Thomson Reuters Trust Principles.

Joe White stands as a distinguished global automotive correspondent for Reuters, stationed in the heart of the automotive world—Detroit. With an expansive portfolio, Joe delves into a broad spectrum of subjects within the auto and transport industry. Notably, he curates "The Auto File," a thrice-weekly newsletter providing insights into the dynamic landscape of the global auto industry.

Joe embarked on his journey with Reuters in January 2015, initially taking on the role of transportation editor, steering comprehensive coverage of planes, trains, and automobiles. His leadership and expertise propelled him to the position of global automotive editor, where he continued to shape and enhance the automotive coverage for Reuters.

Prior to his tenure with Reuters, Joe held the esteemed position of global automotive editor at the Wall Street Journal. In this influential role, he not only oversaw extensive coverage of the auto industry but also managed the operations of the Detroit bureau. Joe's rich journalistic background is further highlighted by his co-authorship, alongside Paul Ingrassia, of "Comeback: The Fall and Rise of the American Automobile Industry." Their collaborative efforts were recognized with the prestigious Pulitzer Prize for beat reporting in 1993.

Joe White's commitment to delivering insightful and impactful automotive journalism has left an indelible mark on the industry, making him a respected figure in the field and a valuable asset to Reuters' coverage of the dynamic world of automobiles.

In conclusion, Joe White stands as a prominent figure in global automotive journalism, contributing significantly to Reuters' coverage from the automotive hub of Detroit. With a career marked by comprehensive insights into a wide array of auto and transport industry topics, Joe's influence extends to "The Auto File," a newsletter offering a deep dive into the ever-evolving landscape of the global auto sector.

Joining Reuters in January 2015, Joe initially assumed the role of transportation editor, leading coverage on planes, trains, and automobiles. His expertise and leadership later earned him the position of global automotive editor, further shaping the trajectory of Reuters' automotive journalism.

Before his tenure with Reuters, Joe served as the global automotive editor at the Wall Street Journal, where he not only directed extensive coverage of the auto industry but also managed operations at the Detroit bureau. Joe's journalistic prowess is highlighted by his co-authorship, alongside Paul Ingrassia, of "Comeback: The Fall and Rise of the American Automobile Industry," a work that earned them the Pulitzer Prize for beat reporting in 1993.

Joe White's enduring commitment to delivering insightful and impactful automotive journalism has solidified his reputation as a respected and influential figure in the field. His contributions continue to enrich the understanding of the dynamic world of automobiles, making him an invaluable asset to Reuters and leaving a lasting legacy in automotive journalism.