On
Wednesday, Ford Motor was the first of Detroit's Big Three car
manufacturers to negotiate an agreement to settle strikes joined
by 45,000 Detroit Three auto workers since mid-September. The
deal will likely set a pattern for new UAW contracts with GM and
Stellantis.
Talks between Stellantis and the UAW were set to reconvene at 10
a.m. Detroit after lengthy talks on Friday. The meeting Saturday
could finalize a tentative agreement, the sources said. Talks
between the UAW and General Motors were continuing past 9 p.m.
Friday.
Both GM and Stellantis have agreed to match Ford on key economic
terms including the 25% wage hike, but some final crucial issues
including the use of temporary workers has been one of the final
issues of discussion, the sources said.
Stellantis has offered to build a new vehicle at a shuttered
Belivdere, Ilinois factory as well as a new battery plant, a
person briefed on the matter said, confirming a Bloomberg News
report.
GM shares closed down 4.6% at $27.22. Stellantis shares closed
down 2.4% at $18.04 in New York.
The Ford agreement, which still must be ratified by union
members, includes a 25% wage hike over the life of the
4-1/2-year contract, a boost in retirement contributions, and
the elimination of lower-pay tiers for workers in certain parts
operations at Ford.
It also reduces the time to get to top pay to three years from
eight, and the UAW won the right to strike over plant closures.
The deal amounts to total pay hikes of more than 33% when
compounding and cost-of-living mechanisms are factored in, the
UAW said.
Ford Chief Financial Officer John Lawler said on Thursday that
the strike had cost the automaker $1.3 billion in earnings and
80,000 vehicles.
(Reporting by David Shepardson in Washington and Joseph White in
DetroitEditing by Chizu Nomiyama, Peter Henderson, Matthew Lewis
and Raju Gopalakrishnan)
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