Stellantis’ last UAW proposal included higher raises; Fate of Belvidere discussed
Stellantis doesn't plan to advertise during this year's Super Bowl. ·Detroit Free Press
Eric D. Lawrence, Detroit Free Press
Updated 6 min read
Stellantis on Saturday said it bumped its wage offer to the UAW up to nearly 21% in raises for hourly workers over the life of the next contract, with an immediate 10% increase at ratification.
Meanwhile, a top executive for the automaker said it had proposed a solution for its idled Belvidere Assembly Plant in Illinois, but that the offer had been contingent on getting a deal ahead of the strike deadline, a move that was highly criticized by UAW President Shawn Fain.
Mark Stewart, chief operating officer for Stellantis North America, in a talk after a company news release on the offer Saturday, clarified that the 21% represents a compounded figure and that the raise numbers would add up to 20% over the life of the contract, typically about four years. Stewart said he wanted to "get the record straight" about the company's last offer to the United Auto Workers union, describing union portrayals of it as misleading.
"We were quite disappointed ... as we went in around 8 o'clock just before the expiration deadline" on Thursday night, Stewart said, noting a desire to clarify the situation. "The leadership after calling a strike has publicly misrepresented several key elements of our offer so it's extremely important we get the record straight."
Stewart said the company understands the need to reflect the impact of high inflation since the last contract and he said the company's "compelling offer" had done that, but he also said there's a need to balance that with the need to "make sure there's a sustainable future" for the company.
"Going back to 2009 in every request is not affordable. I think we've heard it from some of the competitors about what it would do to their financials so no need to repeat that," he said, appearing to reference the prior contract concessions the union has been seeking to regain (2009 was also the year both Chrysler and General Motors filed for bankruptcy as the country grappled with a financial crisis). "We’ve got to have a viable industry for the Big Three, and at the end of the day, we have to be able to compete against the non-union competitors here in the U.S., be it Tesla, who’s already at a much lower cost structure to us, be it the transplants."
The outreach from Stewart and Stellantis comes as the automaker, which owns the Jeep, Ram, Chrysler, Dodge and Fiat brands, is dealing with the impact of the historic strike called Thursday by the United Auto Workers union against Ford Motor Co., General Motors and Stellantis, with workers at Stellantis' Toledo Assembly Complex, where the Jeep Wrangler and Gladiator are assembled, among the thousands of union workers on the picket line.
The UAW has been asked for new comment on the Stellantis proposal, but the union and its leaders, including President Shawn Fain and Vice President Rich Boyer, who heads the Stellantis department, offered their own take previously, indicating so far that the sides remain far apart. The union has been quick to paint as hypocritical the concerns from automakers about meeting UAW contract demands in light of the millions of dollars in compensation that the CEOs receive and the billions of dollars available for things like stock buybacks. The union has also pointed to the "quarter of a trillion dollars" in North American profits Ford, GM and Stellantis (and its predecessor companies) recorded in the last decade to argue that the automakers can afford to share more of their earnings with their workers.
The union also had indicated that the company in negotiations sought the right to close or sell 18 facilities, but during his call, Stewart said that also was misleading, noting that there would be no job losses associated with any of those changes. He said the company operates many older parts distribution centers and wants to modernize them. Some are also in rented facilities.
Stewart also said the company gave a "very compelling commitment" around jobs and a solution related to Belvidere, which has been a major issue for the union since the company announced it was idling the plant, citing the high cost of the electric vehicle transformation. That was contingent on a new deal being reached before the deadline, he said.
Stewart said that part of the proposal would have to be revisited but that "we're glad to continue to work on a solution" for Belvidere.
Fain, in a statement, blasted Stellantis over the Belvidere comments:
“Today, a Stellantis executive told the press that the company had put forward a proposal to reopen Belvidere Assembly Plant but that they are now taking it back. That’s how they see these workers. A bargaining chip. Belvidere Assembly was a profitable plant that just a few years ago supported around 5,000 workers and their families. Now that number is zero, and Stellantis wants to keep playing games. Their attitude is: Stellantis giveth, and Stellantis taketh away. Our attitude is: Save Belvidere.”
On wages, Stewart didn't address Stellantis' salaried workers who are represented by the union, although a copy of Stellantis' "proposal #4," obtained by the Free Press, shows the salaried bargaining unit receiving two annual increases and three lump sums, totaling 19.5% over the life of the contract. That's the same percentage figure that the document lists for the hourly workers. It's not clear if Stewart was rounding up when he was discussing the figures in his call.
The company in its news release highlighted a few other aspects.
"When it comes to profitability, our represented employees have shared in our success, and would continue to do so. During the term of the last agreement (a four-year deal), full-time employees saw a total eligible profit-sharing amount of $44,700. Additionally, we proposed increasing wages for all our supplemental employees with a new starting wage rate of $20 per hour — a $4.22 per hour, or 26.7%, increase," the release said.
The company also said it was offering to push the progression to top wage down to four years from eight and ending the wage tier in its Mopar parts division.
There's also a reference to offers of inflation protection and more than $1 billion in retirement security improvements, the release said.
The company said it and the United Auto Workers union have entered a critical phase of negotiations and that the union and company have agreed to resume negotiations on Monday.
