Talks between Chrysler parent Stellantis and the United Auto Workers were continuing late on Friday afternoon as they engage in intensive bargaining to try to reach a labor contract deal to end a six-week-old strike while more talks with General Motors are expected.
Ford Motor on Wednesday was the first of Detroit’s Big Three car manufacturers to negotiate an agreement to settle strikes joined by 45,000 Detroit Three auto workers since mid-September. The deal will likely set a pattern for new UAW contracts with GM and Stellantis.
Both GM and Stellantis have as expected agreed to match Ford on key economic terms including the 25% wage hike, but some final crucial issues including the use of temporary workers remained a key point of contention, the sources said. There was still no settlement as of 5 p.m. EDT, sources said.
Talks with GM and Stellantis which began on Thursday stretched in to the early hours on Friday before they adjourned and then resumed later on Friday.
GM CEO Mary Barra and UAW President Shawn Fain took part in Thursday’s talks while Fain was at Stellantis offices in suburban Detroit on Friday afternoon for discussions.
GM shares closed down 4.6% at $27.22. Stellantis shares closed down 2.4% at $18.04 in New York.
The Ford agreement, which still must be ratified by union members, includes a 25% wage hike over the life of the 4-1/2-year contract, a boost in retirement contributions, and the elimination of lower-pay tiers for workers in certain parts operations at Ford.
It also reduces the time to get to top pay to three years from eight, and the UAW won the right to strike over plant closures.
The deal amounts to total pay hikes of more than 33% when compounding and cost-of-living mechanisms are factored in, the UAW said.
Ford Chief Financial Officer John Lawler said on Thursday that the strike had cost the automaker $1.3 billion in earnings and 80,000 vehicles.