“Stellantis and Auto Workers Unite – Strike Finally Ends!

After a nine-week strike, the United Auto Workers (UAW) union and Stellantis, a newly-formed automotive company that formed as a result of a merger between Fiat Chrysler Automobiles (FCA) and French carmaker Peugeot SA, finally reached a tentative agreement to end the labor dispute. The strike, which began on September 29, 2020, had the members of the UAW picketing outside of numerous Stellantis plants across the United States. The workers had been demanding better wages and benefits, protection of their healthcare coverage, and job security. The agreement finally reached between the UAW and Stellantis calls for a $7 billion investment by the company over the next four years to modernize their plants. In addition, new salaried jobs will be created and the UAW members will receive new wage increases and improved healthcare plans. Furthermore, Stellantis will introduce a new “New Hire Opt-In” system to attract and retain new members to work at their plants in the future. Under this system, new hires will be able to keep the same wages and benefits negotiated by the union until the expiration of the four-year agreement. This tentative agreement is believed to be the largest investment in the United States auto industry since the late 1980s, when Chrysler Corporation invested $6.3 billion in their plants. In a joint statement released by Stellantis Chief Executive Carlos Tavares and UAW President Rory Gamble, it was cited that the agreement provides job security and protection for the workers and also provides Stellantis with an opportunity to ensure the long-term competitiveness in the global auto market. The UAW members must still vote on the agreement, although it is expected to pass without much difficulty. If all goes well, the strike should officially come to an end soon. The fact that the strike was resolved without any major issues is a remarkable feat and should continue to bolster the relationship between Stellantis and the UAW.