On Saturday, Stellantis STLA and the United Auto Workers (UAW) union reportedly reached a tentative agreement, after nearly six weeks of targeted U.S. labor strikes.
The agreement's terms still require approval from UAW leadership. Once approved, local union leaders will be briefed, and a public announcement is expected on Saturday, according to CNBC.
The tentative agreement follows a similar 4½-year agreement that was reached between the UAW and Ford Motor F on Wednesday. The UAW president, Shawn Fain, is due to resume negotiations with General Motors GM on Saturday.
The agreement is expected to conclude six weeks of labor strikes, which were initiated after a failure to reach new deals for 146,000 UAW members before a Sept. 14 deadline. The strikes have cost GM, Ford and Stellantis billions of dollars in lost production, according to CNBC.
Ford's deal included a 25% pay increase over the agreement's term, including an initial increase of 11%. This deal increased the top wage to more than $40 an hour and reduced the eight-year path to top wages to three years. These negotiations set a record for the union, which adopted a more confrontational and strategic approach during the discussions than in recent history.
The labor deals' cost increase for the companies is not immediately clear. However, Deutsche Bank recently estimated Ford's overall cost increase of the agreement to be $6.2 billion over the agreement's term; $7.2 billion at GM; and $6.4 billion at Stellantis.
Read Next: Ford Motor Company Q3 Earnings Preview: UAW Strike Impact, Electric Vehicles, Margins And More
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
