Randy Harvard (right), a 29-year employee, follows a strike by the United Auto Workers at the Stellantis Ram 1500 plant in Sterling Heights, Miss. Experienced autoworker.
Michael Weiland/CNBC
DETROIT – The United Auto Workers union says Chrysler parent company star Plans to invest $18.9 billion in the United States through April 2028, including $1.5 billion to build new midsize pickup trucks at an idled Belvedere, Illinois, plant.
The investments are expected to be completed over the course of the 4.5-year tentative agreement, which must still be approved by the approximately 43,000 UAW members covered by Stellantis’ proposed contract.
Details of the tentative agreement were released Thursday night after local UAW leaders approved the deal, which UAW President Sean Fein called “the most favorable our union has won in decades.” A profitable contract”.
The tentative labor agreement was reached on Saturday after about six weeks of targeted strikes by unions against Strantis. General Motors and Ford. The shutdown began on Sept. 15 after both sides failed to reach an agreement with the automakers before a strike deadline covering the 146,000 UAW members.
In addition to Belvidere’s investment, the deal also commits $1.5 billion each to a Dodge Jeep plant in Detroit and a Jeep complex in Ohio; $1.4 billion for a Ram plant in Sterling Heights, Miss.; $600 million for Stellantis is located at the Warren truck plant in suburban Detroit.
The company also plans to invest $3.2 billion in a new joint venture battery factory that is scheduled to open in 2028, the union said. The deal also outlines a previously announced $6.2 billion battery investment in two joint venture battery factories in Kokomo, Indiana.
Like the UAW’s tentative deal with Ford, the agreement includes significant pay raises, bonuses and other enhanced benefits for autoworkers, such as profit-sharing payments and a $5,000 approval bonus.
The 25% raise includes an 11% increase upon approval, a 3% increase over the next three years, and then a 5% increase in September 2027.
Ford’s UAW members have begun voting on the tentative deal: 82 percent of workers at Ford’s Michigan assembly plant voted in favor of the deal this week. The plant in suburban Detroit was one of the first to strike, along with other assembly plants such as General Motors and Stellantis.
UAW members along with Stellantis and GM are expected to vote on the deals in the coming weeks. Approval of these transactions requires a simple majority.
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