Shares of Stellantis N.V. (STLA) have experienced a 0.5% increase in midday trading following the disclosure of the automaker’s “first economic proposal” to the United Auto Workers union. The proposal outlines several significant benefits for employees, including a yearly wage increase totaling 14.5%.
Improved Compensation Package
In addition to the wage increase, Stellantis is offering a one-time $6,000 “inflation protection” payment in the first year of the contract. Over the final three years, employees will receive $4,500 in inflation protection payments. Moreover, Stellantis recognizes and celebrates Juneteenth as a paid holiday.
The starting wage for supplemental employees will see an impressive boost of 26.7%, reaching $20 an hour. Additionally, the progression to the maximum wage rate for in-progression employees will be expedited, decreasing the time required from eight years to six.
A Responsible Offer for a Bright Future
Stellantis expressed its commitment to providing good jobs not only today but also for future generations in the United States. The automaker believes that this proposal is both responsible and robust, ensuring that it remains competitive in the rapidly transitioning electric vehicle industry on a global scale.
In contrast to Stellantis’ offer, rival automaker General Motors Co. (GM) presented a proposal of a 10% wage increase and other payments, which was deemed “insulting” by the UAW.
While Stellantis shares have rallied 11.3% in the last three months, GM’s stock has experienced an 8.6% decline. At the same time, the S&P 500 has seen a 4.0% increase.