As with the Ford deal, the Stellantis agreement gives workers cost-of-living adjustments to wages that will push the total wage increase to around 30 percent, the person said.
The strike against General Motors continues, though the automaker is close to reaching its own tentative agreement with the UAW, said people familiar with those talks.
The six-week long strike has rattled the economy and the Biden administration, which has been pushing to resolve the work stoppage in an industry that contributes 3 percent of the nation’s gross domestic product.
The UAW strike has been the union’s first against all of Detroit’s Big Three automakers at the same time, as workers railed against years of their wages not keeping up with inflation.
The fallout for the automakers has been swift, with General Motors this week saying the strike was costing it $200 million a week — and that was before the UAW walked out of an additional GM plant in Arlington, Tex., on Tuesday. Ford this week said the strike had cost it $1.3 billion.
The contract negotiations have been acrimonious, with Fain frequently lashing out against “corporate greed” and lucrative executive compensation. The automakers have at times accused Fain of grandstanding for the cameras instead of engaging in real negotiations — and they have warned that significantly increasing their labor costs will make it hard for them to compete against non-unionized rivals.
Ford Chief Financial Officer John Lawler said Thursday the deal will raise Ford’s labor costs by $850 to $900 per vehicle produced. Ford will still remain profitable, he added.
This is a developing story. It will be updated.