Stellantis offers 14.5% raises to UAW; union calls it 'deeply inadequate'

Stellantis on Friday gave the UAW a contract proposal that would raise hourly workers' pay 14.5 percent during the next four years, although UAW President Shawn Fain labeled it as "deeply inadequate."

That compares to initial offers of 15 percent by Ford Motor Co. and 16 percent by General Motors, though their proposals called for some of the increases to be paid in lump sums. Stellantis said the full 14.5 percent would be given through hourly pay increases that carry forward into future years.

Stellantis said it would give workers $10,500 in inflation-related bonuses, including $6,000 in the first year of the deal. That compares to $11,000 at GM and $12,000 at Ford.

A summary of Stellantis' offer, which the company made public Friday, did not mention any ratification bonus. Both GM and Ford said they would give workers $5,500 upon ratification of new contracts.

"This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the U.S.," Stellantis North America COO Mark Stewart wrote in a letter to employees. "It also protects the company's future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles."

Stellantis matched the original GM and Ford proposals to raise temporary workers' starting pay to $20 per hour and reduce the amount of time it takes new hires to reach top wages from eight years to six. Stellantis currently starts temps at $15.78 per hour.

Like GM, Stellantis said it would add Juneteenth as a paid holiday.

Fain appeared on Facebook Live on Friday to blast Stellantis’ offer, saying the 14.5 percent wage increase was not enough.

“It doesn’t make up for inflation, it doesn’t make up for decades of falling wages, and it doesn’t reflect the massive profits we’ve generated for this company,” he said.

He also said Ford’s latest counteroffer, released Thursday, made some progress on wages, although the two sides remain far apart.

Ford is now offering a 10 percent wage increase over the duration of the contract, Fain said, up from a previous 9 percent offer. The union did not specify whether Ford’s lump-sum bonus offer had changed; it had previously offered 6 percent in total bonuses.

Fain also said Ford’s latest offer shaved another year off the time it would take for workers to reach top wages; it's now offering a five-year path.

Fain also said Ford is offering a cost-of-living adjustment formula that he labeled “deficient.” He said it would provide an “estimated 0 percent wage protection” over the next four years.

“That’s not COLA; that’s not even diet COLA,” Fain quipped. “That’s Coke Zero.”

Fain reiterated that the union does not want to strike but will walk off the job at any company it does not have a deal with at 11:59 p.m. Sept. 14. He noted that negotiations were ongoing with every company.

“This is movement,” he said. “That’s happening because we’re putting on pressure.”