Jeep maker Stellantis has reached a tentative contract agreement with the United Auto Workers (UAW) union, marking the latest development in ongoing negotiations in the automotive industry. The agreement, which still needs to be ratified by UAW members, follows a similar deal reached earlier in the week with Ford. The only automaker left without an agreement is General Motors (GM), and in an effort to increase pressure on the company, the union walked out at a GM factory in Spring Hill, Tennessee on Saturday night.

The Stellantis deal, if ratified, will save jobs at a factory in Belvidere, Illinois, that the company had planned to close. It includes a commitment by Stellantis to build a new midsize truck at the Belvidere factory, which was slated to be shut down. Approximately 1,200 workers will be rehired, and an additional 1,000 workers will be added for a new electric vehicle battery plant. UAW President Shawn Fain confirmed the agreement in a video appearance on Saturday evening, stating that 43,000 members still need to vote on the deal.

In terms of wage increases, the Stellantis deal mirrors the one at Ford. It includes a 25% increase in wages over the next 4? years for top assembly plant workers, with 11% coming once the deal is ratified. This would bring the raises to a compounded 33%, with top assembly plant workers making over $42 per hour. The agreement also includes cost-of-living pay and would run through April 30, 2028.

GM expressed disappointment with the additional strike at the Spring Hill assembly and propulsion systems plant, citing the progress made in negotiations. The company stated that it has bargained in good faith and wants to reach a deal as soon as possible. The Spring Hill facility is GM's largest manufacturing plant in North America, employing nearly 4,000 workers and producing vehicles such as the electric Cadillac Lyriq, GMC Acadia, and Cadillac XT5 and XT6 crossover SUVs.

The UAW strike against Stellantis began six weeks ago and has affected over 14,000 workers at assembly plants in Michigan and Ohio, as well as parts distribution centers. With the tentative agreement, these workers have been instructed to end their strike and return to work. The agreement is seen as a significant victory for the union, as it secured gains worth more than four times the improvements in the 2019 contract. The union said that through April 2028, a top-scale assembly plant worker's base wage will increase more than all the increases in the past 22 years.

While workers at Stellantis are expected to approve the deal, negotiations are still underway with General Motors. Over 14,000 workers at GM remain on strike at factories in Texas, Michigan, and Missouri. The UAW began targeted strikes against all three automakers on September 15 after contracts expired. The strikes have resulted in layoffs for several thousand more workers due to parts shortages.

The UAW's success in securing favorable agreements with automakers follows similar victories in other industries. The Teamsters, for example, recently secured new pay hikes and benefits for unionized UPS workers after threatening a nationwide strike. The UAW's negotiations and strikes have showcased the union's influence and ability to secure favorable terms for its members.