General Motors and Stellantis have both agreed to offer UAW members a 25% wage increase in ongoing contract negotiations, consistent with Ford’s proposal to end a six-week strike, according to people familiar with the matter.
The GM proposal also includes living cost Two people who were not authorized to discuss the negotiations said the value of the contract increased over the course of more than four years. The two sides are likely to sign a tentative agreement late Friday or early Saturday as the two sides discuss final details, including how to handle temporary workers, people familiar with the matter said.
GM made the offer around 4 a.m. Friday, people familiar with the matter said. Negotiations ended at 5 a.m. and resumed at 11 a.m., people familiar with the matter said. The automakers hope to finalize the deal on Friday, though an announcement likely won’t be made until Sunday, when UAW President Shawn Fain plans to update members on the latest details of the Ford deal.
Shares of Stellantis and General Motors edged higher in after-hours trading.Ford shares rose slightly in late trading, a day after falling more than 12% on Friday, the biggest drop in 13 months. pull Its full-year profit forecast was affected by the strike.General Motors shares fell 4.7% on the day; it pause Full-year guidance was released on October 24.
Any final agreement must be approved by union leadership and then voted on by union members at the company, a process that could take weeks.
Negotiations with the two automakers continued late Friday to finalize the final parts of the agreement, people familiar with the matter said. UAW’s Fain left the GM meeting and headed to the Stellantis table.
Job security has been a key issue in Stellantis negotiations as automakers shift to electric vehicles.Strantis has outraged unions Earlier this year, a Belvedere, Ill., assembly plant that at one point had 5,000 employees idled the plant and pushed for more low-wage temporary workers. Stellantis proposed closing 18 factories, including 10 parts and distribution centers.
Stellantis has proposed building a new car and adding a battery factory at the idle Belvidere plant, three people familiar with the matter said. Three people familiar with the matter declined to be named discussing sensitive details. The automaker has also proposed creating an Amazon-like parts distribution center to absorb workers from the combined parts plants.
The offers are conditional on other projects and are not guaranteed, two people familiar with the matter said.
As part of a tentative agreement with the UAW, Ford agreed to convert temporary workers to full-time employees. The number of temporary workers at Ford is small compared to the other two Detroit automakers, making it easier for Ford to give them permanent status. Offering the same incentives would bring GM and Stellantis’ costs closer to those of Ford, which is higher than its rivals.
The UAW strike began on September 15 and has expanded to include more than 45,000 workers at eight assembly plants and 38 parts distribution plants of General Motors, Ford and Stellantis in 22 states. Ford’s deal this week with the United Auto Workers union increases pressure on Detroit rivals to complete negotiations and resume work.
Ford said on October 26 that the shutdown had resulted in company cost $1.3 billion. Earlier this week, General Motors said its strike costs had reached $800 million.
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