UAW boss tosses Stellantis wage hike provide within the trash

Aug 9, 2023 0 Comments


The president of the United Auto Employees union is taking a tough line in collective wage bargaining talks with all of Detroit’s Massive Three automakers earlier than present contracts expire on Sep. 14.

However on Tuesday, Shawn Fain took to Fb Dwell to name out one firm specifically for its proposal: Stellantis, the producer of manufacturers like Jeep, Ram and Dodge. 

Fain known as a low-ball contract provide by Stellantis a “slap within the face” and “an insult to our members’ arduous work over the past 4 years.”

“Administration’s chosen to spit in our faces,” the UAW president continued

Stellantis and the UAW seem like far aside of their positions.

The union, amongst different calls for, is asking for a 40% pay enhance over the following 4 years, a discount in working hours, and an finish to a tiered-pay system that compensates veteran workers considerably greater than new hires. The union additionally desires employees on the automakers’ EV crops—joint ventures with international corporations that the Massive Three declare are legally separate entities—to be coated by a brand new UAW contract.

Relatively than eradicate pay tiers, Stellantis is as a substitute proposing the creation of recent ones, Fain mentioned on Tuesday.

The carmaker can also be attempting to focus on absenteeism at its U.S. factories, which it blames for $217 million in misplaced income over the previous two years. A Stellantis proposal, dated July 27, would tie wage will increase and different advantages to attendance, studies The Detroit Information. The corporate additionally desires the best to make some bargaining modifications with out ratification from rank-and-file union members. 

Fain even known as out Stellantis CEO Carlos Tavares personally. Fain famous the “pathetic irony” of Stellantis’s concentrate on absenteeism when Tavares “can’t even present as much as bargaining.” (Tavares has beforehand mentioned that he needed his North American executives to deal with the negotiations, and steered he could be “extra helpful to the group” elsewhere).

In a theatrical gesture, Fain threw the provide into a close-by trash can. “That’s the place it belongs—within the trash—as a result of that’s what it’s,” he mentioned.

Neither Stellantis nor the UAW instantly responded to a request for remark. 

Labor motion

Fain defeated the incumbent president of the UAW earlier this yr, promising a more durable method to negotiations. 

Usually, the UAW negotiates with one automaker, which then turns into the template for contracts with the opposite two. This time round, the UAW is negotiating with all three, and thus may launch a strike in opposition to all of them. 

The U.S. is seeing a broader wave of labor group and industrial motion, as tight job markets are giving workers extra leverage to demand higher situations and pay amid ongoing excessive inflation.

Hollywood writers and actors are on strike demanding higher residual funds and safety from A.I., amongst different calls for. The writers strike is now previous its one hundredth day.

California lodge employees have additionally staged walkouts to demand higher pay and protections, in addition to a promise to cease utilizing e-Confirm, the system used to test immigration eligibility for employees.

Some negotiations have succeeded in averting strikes. In July, the Teamsters–the U.S.’s largest union– agreed a brand new contract with UPS that may enhance wages to as a lot as $170,000 yearly, finish a tiered wage system, and add air-conditioning to vehicles. The deal averts a strike that might have disrupted as a lot as 1 / 4 of all package deal deliveries. 

Stellantis was fashioned from the 2021 merger between Fiat Chrysler Vehicles and France’s PSA Group. It’s the third-largest automaker by income, ranked behind Volkswagen and Toyota Motor on Fortune’s 2023 World 500 listing. 

Stellantis reported $12 billion in internet revenue within the first half of the yr, a 37% enhance from the identical interval in 2022. The carmaker is at the moment conducting a $1.7 billion share buyback program, which it hopes to finish by the top of the yr. Stellantis shares are up 30.1% for the yr.


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