After weeks of strikes, several US car giants are planning a 25 percent pay increase for their workforce.
A few days after Ford, the Stellantis Group also agreed to a corresponding deal with the UAW union. In addition, instead of a planned reduction of 5,000 jobs over the multi-year term of the collective agreement, Stellantis will create 5,000 new jobs in the USA, said UAW President Shawn Fain in a video message on Saturday.
Stellantis is represented in Europe with brands such as Peugeot, Opel and Fiat, and in the USA these include Chrysler, Dodge and Jeep. On Wednesday, Ford agreed with the UAW on a salary increase of 25 percent over the more than four-year term of the new collective agreement. However, the agreements still have to be approved by the union members.
The agreements with Ford and Stellantis increase pressure on the third US car giant General Motors, as striking factories of its competitors are now resuming production.
The UAW’s original demand was 40 percent – on the grounds that the income of the top management of the large car companies had grown by this amount. Before the strike began, car manufacturers were ready for increases of up to 20 percent over a period of four and a half years. The union decided to gradually expand the strikes to other plants. This meant that the companies did not know which of their factories might be affected next.
