"We made them invest": UAW President Shawn Fain discusses tentative agreement with Stellantis
(CBS DETROIT) - United Auto Workers union President Shawn Fain and Vice President Rich Boyer discussed the details of the union's tentative agreement with Stellantis on Thursday evening.
The union announced it reached a tentative agreement with Stellantis, which owns Chrysler, Dodge, Jeep and Ram, and several other brands, on Saturday, Oct. 28.
What's in the agreement?
The deal is similar to the one the union reached with Ford and includes 25% wage increases over the four-and-a-half-year contract and top earners will earn more than $42 per hour over that time. The starting pay will increase to over $30 per hour over that time (an over 67% increase).
UAW workers will also receive a $5,000 ratification bonus, and the automaker agreed to implement the cost of living allowances (COLA) for hourly and salaried workers.
In addition, Stellantis also agreed to reopen the assembly plant in Belvidere, Illinois, which was closed back in February. More than 1,000 autoworkers lost their jobs due to the closure.
"We went into these negotiations, knowing that we had a duty to save Belvidere ... we did exactly that," said UAW Vice President Rich Boyer.
Boyer said they fell short in winning back pension, but the agreement included billions of dollars in retirement accounts. Those who still have a pension would receive $5 added to the multiplier. Current retirees and surviving spouses will receive an annual $500 bonus
For temporary workers, Fain said the lowest-paid temporary workers will see a 168% raise. Temporary workers are also eligible for profit sharing for the first time.
In the agreement, Stellantis agreed to allow the workers the right to strike over plant closures.
"We knew that record profits meant record contracts. That's why we pushed the company to not only stop job cuts but add 5,000 more jobs under our agreement. And the right to strike means we can protect these jobs with our most powerful tool," Fain said. "We forced the company to change course at places like Trenton Engine and Toledo Machining, where they wanted to cut. We made them invest."
Fain said for the first time in Big Three history, the company agreed to implement a first-car lease program, which is currently an option for Stellantis managers. That program would extend to UAW members.
Members with more than two years of employment would be eligible for discounts for Stellantis vehicles.
Ford Michigan Assembly Plant vote in favor of agreement
On Thursday, Nov. 2, it was announced that Ford's first plant to go on strike voted overwhelmingly in favor of Ford's tentative agreement with the union.
UAW members of the Local 900 at the Michigan Assembly Plant in Wayne voted 81% in favor of the deal. For more details on Ford's deal with the UAW, visit here.
Fain discussed Ford's agreement on Sunday, ahead of the regional meetings with local leaders before it went to the members for a vote.
For all of the latest UAW news, visit here.