Tentative deal emerges days after UAW strike spreads to SHAP

STERLING HEIGHTS — Days after the United Auto Workers’ strike spread to Sterling Heights’ Stellantis a tentative deal was announced.

On Oct. 23, 6,800 employees at the Sterling Heights Assembly Plant walked out, shutting down production at what the union called “Stellantis’ largest plant and biggest moneymaker.”

The factory makes the best-selling Ram 1500 trucks.

Stellantis, the union said, “has the worst proposal on the table regarding wage progression, temporary worker pay and conversion to full-time, cost-of-living adjustments (COLA), and more.”

Stellantis has proposed 21.3% pay increases, compared to 23% for General Motors and Ford.

On Friday, UAW President Shawn Fain did not call a new strike target. During a Facebook live session, Fain criticized Ford, but said GM and Stellantis talks were moving forward. Stellantis agreed with Fain, later issuing a statement saying “negotiations between Stellantis and the UAW continue to be productive, building on the momentum from the past several weeks.”

The walkout brings the total of UAW members on strike at the Detroit-area automakers — General Motors, Ford Motor Co. and Stellantis — to 40,000.

Tens of thousands of striking workers are at Michigan-based factories. The Sterling Heights Assembly Plant is the largest.

In an interview with the Sentry, Sterling Heights Mayor Michael Taylor called the latest strike news “disappointing” and “frustrating,” adding that “we hope there is a resolution to this very soon.”

While the strike had not impacted Sterling Heights up to this point, he described the role that the Sterling Heights Assembly Plant plays in the local economy, and the effect that striking SHAP workers could have.

“And the economic impact they have on the surrounding community is very large, over a billion dollars annually,” Taylor said. “I understand they’re fighting for fair wages. I call on the UAW and the Big 3 to get this resolved as soon as possible.”

Taylor also said city officials have spoken with Stellantis leadership as well as the local UAW president at SHAP. The mayor added that the city expects everything to be orderly and is making sure that everyone at the plant stays safe while the picketing takes place.

A later official statement from the city of Sterling Heights said the city is “proud to be home of the Ram 1500 and the facility in which this vehicle is produced.” The statement added that the plant is “one of the most technologically advanced assembly plants in the world,” in part because of the nearly $3 billion that has been invested into it since 2010.

“The city of Sterling Heights values the 6,500 men and women who build the Ram 1500 truck at SHAP,” the statement said. “Considering the SHAP plant alone represents a roughly $1.6 billion economic impact to not only Sterling Heights, but the entire Detroit region, our hope is that an agreement is reached as soon as possible to return the facility to full production, in the best interest of all parties.”

During the afternoon of Oct. 23, a press release from Stellantis said that it is “outraged” over the strike’s expansion to SHAP.

“Last Thursday morning, Stellantis presented a new, improved offer to the UAW, including 23% wage increases over the life of the contract, nearly a 50% increase in our contributions to the retirement savings plan, and additional job security protections for our employees,” Stellantis said.

“Following multiple conversations that appeared to be productive, we left the bargaining table expecting a counter-proposal, but have been waiting for one ever since.”

Stellantis accused the UAW of harming the auto industry and the economy, and said there would be “long-lasting consequences” to any strategy of “wounding” the Detroit 3.

“With every decision to strike, the UAW sacrifices domestic market share to non-union competition,” Stellantis said. “These actions not only decrease our market share, but also impact our profitability and therefore, our ability to compete, invest and preserve the record profit sharing payments our employees have enjoyed over the past two years.”

In an Oct. 23 statement on the UAW website, the union explained its reasoning for having the SHAP workers join the strike.

“Despite having the highest revenue, the highest profits (North American and global), the highest profit margins, and the most cash in reserve, Stellantis lags behind both Ford and General Motors in addressing the demands of their UAW workforce,” the statement said.

 

Coming to an agreement
On Oct. 28, news emerged of a tentative agreement between the UAW and Stellantis.

In a video posted that same day, UAW Vice President Rich Boyer said Stellantis agreed to 25% general wage increases over the deal’s duration, which lasts through April 2028.

“And with COLA (cost-of-living adjustments), we expect that top rate to increase by over 30%, to above $40 an hour,” Boyer said. “Our starting rate will raise 67%. Some of our lower-tier members at Mopar will see an immediate 76% raise upon ratification. … At ratification, Stellantis workers will receive an immediate 11% wage increase.”

A UAW press release expounded on other aspects of the deal.

“The agreement reinstates major benefits lost during the Great Recession, including Cost-of-Living Allowances and a three-year Wage Progression, as well as killing divisive wage tiers in the union,” the UAW said.

“It improves retirement for current retirees, those workers with pensions, and those who have 401(k) plans. Like the Ford agreement, the Stellantis deal includes a right to strike over plant closures. It also includes a right to strike over product and investment commitments, a historic first for the union.”

According to the UAW, its workers will go back on the job at Stellantis while the tentative agreement undergoes the steps aiming toward ratification. Representatives from UAW Local 1700 did not respond for direct comment by press time.

In a press release, Stellantis North America Chief Operating Officer Mark Stewart thanked negotiating teams for the achievement.

“We look forward to welcoming our 43,000 employees back to work and resuming operations to serve our customers and execute our Dare Forward 2030 strategic plan to maintain Stellantis’ position at the forefront of innovation,” Stewart said.

On Oct. 30, Mayor Michael Taylor called the tentative agreement with Stellantis “great news” in a text message.

“I’m very happy that this is resolved and congratulate both the UAW and Stellantis on reaching an agreement,” he said. “It’s important to the health of our city and local economy to have the plants operating at full capacity.”

Sterling Heights senior economic development adviser Luke Bonner also commented on the deal and what the UAW’s efforts to increase wages could mean for the local economy.

”Bringing more money into the pockets of people who are going to spend it around Sterling Heights is a great thing,” Bonner said.

Besides the Stellantis deal, the UAW also reportedly reached tentative deals with Ford and GM in October.