Stellantis NV's new contract proposal to the United Auto Workers (UAW) lacks the job security commitments the union wants, a negotiator said, suggesting workers would reject the proposal.UAW President Shawn Fain has not said whether he will agree with Stellantis' latest plan, but the salary increase in this proposal is similar to the 19.5% salary increase the company previously proposed. Additionally, union negotiator Scott Moldenhauer said it doesn't give workers a clear future they want to see.
"That's not good enough in our opinion," Modenhauer said Wednesday as he walked through a picket line outside Stellantis' North American headquarters in suburban Detroit. "They don't want to assign future product lines to our factory."
The UAW said it was evaluating Stellantis' new plan, but did not disclose details of the plan. A spokesperson for Stellantis said the company "formally approved its fifth contract proposal yesterday to focus on outstanding issues."
GM's negotiations with unions have been equally difficult. Chief executive Mary Barra told salaried employees on Wednesday morning that the union's pay demands were too high. According to people familiar with the matter, the company's current plan is to increase the average annual salary to $150,000, plus benefits. GM is still bargaining with the union, but people familiar with the matter say the two sides are deeply divided.