UAW expands strike to biggest Stellantis plant as 6,800 walk out in Michigan

The United Auto Workers on Monday widened its strike to the huge Stellantis assembly plant in Sterling Heights, Michigan, with 6,800 workers walking off the job at the site that manufactures the firm’s bestselling Ram 1500 trucks.

The UAW said in a news release that it expanded its strike against the Big Three Detroit automakers to Stellantis’ largest factory because the company “lags” behind both General Motors and Ford in contract negotiations and has the “worst proposal” on the table concerning the progression of wage increases for full-time workers, cost-of-living adjustments, and pay and conversion to full-time status for temp workers.

The expansion brings the total number of workers on strike at the Big Three automakers – Ford, General Motors, and Jeep-maker Stellantis – to roughly 40,000, or about 26% of the union’s members who work for the companies.

Besides Jeep and Ram, Stellantis also owns Chrysler.

The move comes after UAW President Shawn Fain on Friday laid out the latest bargaining developments in a live stream.

He noted that GM and Stellantis had moved closer to the union’s demands in counterproposals, but highlighted shortcomings across all three companies.

“We’ve got cards left to play,” Fain said. “They have money left to spend.”

Jodi Tinson, a spokesperson for Stellantis, said in a statement Monday, “We are outraged that the UAW has chosen to expand its strike action against Stellantis.”

She noted that Stellantis on Thursday presented a new offer to the UAW that included a 23% pay increase over the life of the contract, in addition to a nearly 50% increase in contributions to retirement funds.

“Following multiple conversations that appeared to be productive, we left the bargaining table expecting a counter-proposal, but have been waiting for one ever since,” Tinson said, saying the strike will have “long-lasting consequences,” especially to the domestic market share that goes to nonunion competition.

The union has been locked in tense contract negotiations with the automakers for months.

On Sept. 15, the union stopped work at one factory from each company, and it has gradually pulled workers from dozens of additional factories and warehouses.

The UAW last expanded its strike on Oct. 12 to Ford’s giant truck and SUV factory in Louisville, as 8,700 workers walked off the job at a plant that makes up about one-sixth of the company’s global revenue.

The union and automakers have come closer in recent weeks in their demands and offers for a new, four-year contract but have remained far enough apart to prevent a deal.

At the start of negotiations, the union demanded 40% wage increases over four years, and has since adjusted those demands down to 36%.

It has also demanded an end to a tiered-based system of employment that sets some workers on a lower wage scale, with reduced benefits.

And the union wants automakers to bring back cost-of-living adjustments to wages, a contract provision that the workers agreed to give up in 2009 when automakers were on the brink of collapse.

On Friday, Fain announced that Stellantis and GM had made new “progress,” bringing their wage offer to 23% over the life of the contract, up from 20%, matching Ford’s offer.

But he also highlighted what he saw as Stellantis’s shortcomings.

The firm is offering a four-year progression to full pay, while GM and Ford have offered around three-year progressions, Fain said.

He also noted that Stellantis has continued to offer a “deficient” cost-of-living adjustment proposal, compared with Ford and GM, that doesn’t kick in until after the first year.

Meanwhile, Stellantis’s starting wage offer for temp workers remains at $20 an hour, he said. Ford and General Motors have offered to pay a $21-an-hour starting wage and to vastly improve the conversion time to full-time.

Stellantis also agreed to increase its 401(k) contribution last week by close to 50%, the company said.

And in late September, the union said that Stellantis had made important concessions related to the right to strike over plant closures, but neither side disclosed details.

Stellantis has also offered to end its tiered wage system for its parts, service and customer-care division.

GM recently announced a new offer of a 23% wage increase.

In a statement, the company said the boost represents a 25% compounded pay increase over the life of the contract – including 10% in the first year.

The company said most of its workforce would earn roughly $84,000 a year by the end of the contract.

GM has also agreed to boost its auto parts warehouse workers up to the higher wage scale that vehicle assembly workers earn.

Ford’s most recent offer raises wages for full-time employees by 23% over the life of the contract, revives cost-of-living adjustments intended to keep wage increases in line with inflation, and eliminates the tiered system of wages.

The company also agreed to allow the union the right to strike over any plant closures during the life of the contract.