Stellantis Submits New Contract Proposal to UAW as GM Shares Financial Details

Stellantis, the automotive company, has submitted a new contract proposal to the United Auto Workers (UAW) union. General Motors (GM) has also shared more financial details of its latest offer to counter what it calls “misinformation.”

The new proposal from Stellantis is its fifth since the negotiations with the UAW began. While the company did not provide specific details, it mentioned that the proposal focused on resolving subcommittee open issues.

A UAW source confirmed that they have received a new offer from Stellantis. This is the first new offer from any of the three automakers since the UAW went on strike on September 15.

Discussions are ongoing between the UAW and all three companies before the union’s Friday deadline to show “serious progress” towards new contracts. If there is no progress, UAW President Shawn Fain plans to expand the strike to more plants.

GM’s Offer and Financial Details

A source familiar with the negotiations stated that GM and the union remain far apart on reaching an agreement. However, GM officials have publicly shared specifics about their latest offer.

GM’s offer includes a total raise of 20 percent over the next four years for UAW-represented employees. This raise would bring top wages to $39.24 in 2027, even for workers at components and parts distribution facilities who currently earn less. GM President Mark Reuss emphasized that the offer aims to move all employees covered under the national contract to the same pay system and allow new employees to reach the top wage in just four years, instead of the current eight years.

Reuss also highlighted that GM’s proposal would increase base wages for 85 percent of its represented workforce to around $82,000 per year. When factoring in overtime pay and benefits like healthcare, total compensation would exceed $150,000 annually. Furthermore, the offer ensures that work would continue at all of GM’s U.S. facilities, signaling that the company does not plan to close any plants during its transition to an all-electric vehicle lineup.

Reuss defended GM’s offer, stating that the union’s demands are “untenable.” He emphasized that GM invests its profits into the company and its employees, including preparations for building electric vehicles and future gasoline-powered pickups and SUVs.

According to Reuss and GM’s annual reports, GM earned approximately $65 billion in net income from 2013 to 2022, with $9.9 billion in profits last year. The company’s capital expenditures during that period exceeded $77 billion. GM expects to spend $11 billion to $12 billion on capital this year, as mentioned in their second-quarter earnings report.

Pushback Against UAW’s Criticism

The Detroit 3 automakers have been pushing back against the UAW’s criticism of their proposals. Fain, the UAW President, has accused the companies of earning record profits while paying “poverty wages” to employees.

Reuss called for an end to the misinformation and emphasized that GM’s offer recognizes the contributions of its represented team members. The offer addresses wage growth, job security, and long-term stability, which the employees have indicated as their priorities.