Automaker Stallantis says contract talks on ‘good path’ to avoid UAW strike

As the strike deadline rapidly approaches, automaker Stellantis says contract talks with the United Auto Workers are proceeding smoothly.

Stellantis on Monday said it has reached a tentative agreement with the union on health benefits and safety policies but has not reached a full deal. The company submitted its second counteroffer this week.

“We are on a good path and remain committed to reaching a tentative agreement without a work stoppage that would negatively impact our employees and our customers,” Stellantis Senior Vice President of Human Resources in North America Tobin Williams told employees Monday.

The original proposal from the company, which included a 14.5% wage increase for most workers, was rejected and countered by the UAW Sunday. Shawn Fain, UAW president, said the deal was “deeply inadequate” and a far cry from the union’s demands of a 46% wage increase with pension and retirement plans.

This week’s offer comes just two days before the contract deadline and a possible UAW strike. If a deal is not reached by 11:59 P.M. Thursday, workers from across Ford, General Motors and Stellantis will be on the picket line.

Mr. Fain has described the talks at all three automakers as “slow going.”

“Despite receiving no response for over a month, when the CEOs are ready to make a serious offer we’ll be there, day or night,” he said in a statement. “It’s unfortunate the companies have waited until the last moments to get focused on the needs of the 150,000 autoworkers, our families and our communities.”

According to some experts, a 10-day auto strike would cost the U.S. economy over $1 billion.