(WBBM NEWSRADIO) — Jeep maker Stellantis reached a tentative contract agreement with the United Auto Workers union on Saturday as it escalated strikes against General Motors by adding a plant in Tennessee.
The union’s tentative deal with Stellantis, which UAW officials said will save jobs at Stellantis’ factory in Belvidere, has drawn positive reactions from Illinois lawmakers.
In a statement, Gov. J.B. Pritzker said the UAW deal with Stellantis would be “good for the workers and good for the state.” He added that he’s been focused on bringing jobs back to the shuttered plant in Belvidere, which went idle in February.
As part of its deal, Stellantis reportedly offered to add a battery production facility. Pritzker said he’s “delighted” by the and is looking forward to co-locating that batter facility.
Since the plant shuttered earlier this year, Pritzker said the State has been providing support to the furloughed auto workers while working to craft legislation that could position Illinois for greater success in the electric vehicle industry.
U.S. Sen. Tammy Duckworth (D-Ill.) called the agreement especially impactful for Belvidere and said it illustrates the power of companies and labor coming together to empower workers.
The pact, which still must be ratified by union members, includes 25% in general wage increases over the next 4 1/2 years for top assembly plant workers, with 11% coming once the deal is ratified. Workers also will get cost-of-living pay that would bring the raises to a compounded 33%, with top assembly plant workers making more than $42 per hour. At Stellantis, top-scale workers now make around $31 per hour.
Like the Ford contract, the Stellantis deal would run through April 30, 2028.
The Stellantis deal, which still must be ratified by members, leaves only GM without an agreement with the union. But the union walked out Saturday night at a GM factory in Spring Hill, Tenn., in an effort to increase pressure on the company to reach a deal.
The Associated Press contributed to this report.
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