Stellantis Presents Proposal To UAW: What's Going On With Stellantis Stock?

Stellantis N.V. STLA on Friday presented its first economic proposal to the United Auto Workers union (UAW).

The Details:

Under the terms of Stellantis' proposal, most UAW-represented employees would receive:

• Wage increases in each year of the contract totaling 14.5%
• $6,000 one-time inflation protection payment in first year of the contract
• $4,500 in inflation protection payments over the final three years of the contract
• Supplemental employees would receive a wage increase from a starting rate of $15.78/hour to $20/hour.
• In-progression employees would see an accelerated progression timeline from eight years to six years, reducing the time that employees can reach the maximum wage rate by 25%.

Mark Stewart, Stellantis North America COO, stated in a letter to employees, "Today, we took an important next step in this process by presenting the UAW with our first economic proposal.

From the start of these negotiations, we have said we're committed to fairly rewarding you for your hard work and contributions to the success of the company. Today's offer includes significant wage increases in each year of the contract and, in percentage terms, this opening offer is larger than where we ultimately landed in 2019."

The current contracts between the United Auto Workers union and Stellantis, General Motors Company GM and Ford Motor Company F automakers expire at 11:59 p.m. on Sept. 14.

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STLA Price Action: According to Benzinga Pro, Stellantis shares are up 0.75% at $18.23 at the time of publication.

Image: x3 from Pixabay