Stellantis (STLA) reaches labor deal with UAW as union expands strikes at GM

Stellantis (NYSE: STLA) and the United Auto Workers (UAW) union have tentatively agreed on a fresh labor contract, as confirmed by the UAW on Saturday, marking the resolution more than 40 days after the union initiated a strike against the Detroit Three automakers.

At the same time, the UAW expanded its strike against General Motors (NYSE: GM) to include its Spring Hill, Tennessee, engine plant, potentially delaying GM's production of large pickups and aggravating its financial challenges.

With Ford (NYSE: F) concluding negotiations this past Wednesday, the extension of the seven-week strike now positions GM as the sole Detroit automaker without a contract agreement.

Insiders knowledgeable about the GM deal revealed to the media that critical sticking points in the negotiations with the UAW involve retirement benefits and concerns pertaining to temporary workers.

The Stellantis agreement mirrors the model established by UAW and Ford. When factoring in compounding and the cost of living, the combined compensation hikes will go beyond 33%. The contractual increments will start with an initial 11% raise.

"We look forward to welcoming our 43,000 employees back to work and resuming operations," Stellantis said on Saturday.

Shares of STLA and GM are up 1.39% and 0.40% respectively in pre-market trading on Monday.

By Michael Elkins | [email protected]

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