United Auto Workers President Shawn Fain on Friday slammed Stellantis NV’s first economic contract proposal as “deeply inadequate” but said the Detroit Three automakers are showing signs of movement toward the union’s demands less than a week from when the current agreements expire.
His comments came hours after the Jeep maker submitted a counterproposal to the union’s demands from last month that included a 14.5% wage increase. Fain also shared that Ford Motor Co. had made updates to its proposal, including offering a cost-of-living wage adjustment, a shorter progression to the top wage and a cap on the use of temporary employees.
“I want to be clear: This is movement,” Fain said during a Facebook livestream. “We went from 9% to 14.5% at Stellantis. That’s happening, because we’re putting on pressure.
“But I want to be clear about something else, too. A 14.5% increase over four years is deeply inadequate. It doesn’t make up for inflation, it doesn’t make up for decades of falling wages, and it doesn’t reflect the massive profits we’ve generated for this company.”
During his address, Fain shook his head while donning a “Don’t want to strike, but I will” button in front of a full office trashcan labeled “Big Three Proposals.”
Stellantis’ wage increase is above the wage increases offered by its crosstown rivals. Ford Motor Co. has offered a 10% wage hike, and General Motors Co. on Thursday proposed a 10% boost. It, however, remains a far cry from the UAW‘s requested 46% increase (40% without compounding).
Unlike the GM and Ford counters, Stellantis doesn’t include additional lump-sum payments as part of its wage proposal. There are about 145,000 UAW members at the Detroit Three, including roughly 43,000 at Stellantis.
Stellantis’ proposal would bring the maximum wage for production operators to about $36.37 per hour by the end of a new agreement, up from the present $31.77. Stellantis declined to provide a breakdown of when the increases would occur.
A flyer from the union also said that for UAW-represented salaried workers, the proposal offers only lump sum payments and no wage increases.
“This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the U.S.,” Mark Stewart, chief operating officer for Stellantis in North America, said in an email to employees on Friday. “It also protects the Company’s future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles.”