Stellandis agrees to a 25 percent pay raise in the US

Additionally, instead of cutting 5,000 jobs over the multi-year term of the collective agreement, Stellandis will create 5,000 new jobs in the U.S., UAW President Shawn Fine said in a video message Saturday.

Stellandis is represented in Europe by brands such as Peugeot, Opel and Fiat, and in the US by Chrysler, Dodge and Jeep. On Wednesday, Ford agreed to a 25 percent wage increase over the four-year term of a new collective agreement with the UAW. However, contracts still need to be ratified by union members.

Pressure is mounting on General Motors

The deals with Ford and Stellandis increase pressure on a third U.S. carmaker, General Motors, as its rival’s striking factories resume production.

The UAW’s original demand was 40 percent—on the basis that the incomes of top management at major auto companies had grown to this amount. Before the strike began, carmakers were poised to increase wages by up to 20 percent over four-and-a-half years. The union decided to gradually expand the strikes to other plants. This means that companies do not know which of their factories may be affected next.