2023-10-28 22:37:00
The American automobile union UAW (United Auto Workers) reached an agreement in principle on Saturday with Stellantis, owner of the Chrysler brand, which must still be approved by the leaders of the union and provides for the reopening of a factory of the group in Illinois, according to Archyde.com. This agreement should broadly follow the compromise concluded a few days ago by UAW and Ford, including a 25% wage increase over four and a half years, with an initial increase of 11%.
Strikes in the US auto sector in support of wage demands have entered their seventh week. The Stellantis factory in Belvidere, Illinois, closed this year, leaving 1,300 employees without jobs. UAW President Shawn Fain has promised to reverse the decision, and Joe Biden’s administration and the state of Illinois have offered to guarantee grants to modernize the plant. Illinois also acquired 70 acres of land adjacent to the assembly plant. Negotiations continue in parallel between the UAW and General Motors GM.
A 25% salary increase
Ford and negotiators from the American Auto Union reached an agreement in principle on Wednesday, the American manufacturer and UAW President Shawn Fain announced on Wednesday. The agreement, which must be approved by union leaders and members, would be the first between the UAW and a manufacturer, with more than 45,000 union employees working at Ford, General Motors GM.N and parent company Stellantis of Chrysler, are on strike in the United States. The total economic cost of the UAW workers’ strike, which began on September 15, is currently $9.3 billion (€8.5 billion), according to Anderson Economic Group.
Shawn Fain announced that the UAW and Ford had reached a historic agreement, which provides for a 25% wage increase over the life of the contract. Ford employees will receive an immediate 11% pay increase. In addition to the general salary increase, Shawn Fain said the lowest paid temporary workers would receive an increase of more than 15% over the life of the contract and that employees would reach the maximum salary following three years. The union also won the right to strike for future factory closures.
“We are pleased to have reached an agreement in principle with the UAW on new labor contracts for our operations in the United States,” Ford CEO and President Jim Farley said in a statement.
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