Chrysler-Dodge parent Stellantis (NYSE:STLA) revealed Friday that the Detroit automaker has proposed a 14.5% wage increase over a four-year period to U.S. hourly workers as part of its offer to the United Auto Workers (UAW) union, just prior to the contract's September 14 expiration date.
The proposed wage increase falls significantly short of the union's demand for a 46% salary raise. The UAW has declared that 97% of its members have voted in favor of authorizing a strike if an agreement cannot be reached.
General Motors (NYSE:GM) announced Thursday that it had extended an offer to its workers, which included a 10% wage increase along with two additional 3% annual lump-sum payments over a four-year period. Stellantis, on the other hand, is not including any extra lump-sum payments in its proposal.
Last week, Ford (NYSE:F) revealed its offer of a 9% wage increase until 2027, accompanied by 6% lump-sum payments. A UAW representative stated that Ford was scheduled to present a new proposal on Thursday.
"This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the U.S.," Stellantis N.A. COO, Mark Stewart wrote in a letter to employees.
Stewart added the proposal also “protects the company’s future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles."
The union did not provide an immediate response on Friday. However, UAW President Shawn Fain, who represents 146,000 employees across the Detroit Three automakers, expressed his dissatisfaction with GM's offer on Thursday, describing it as "an insulting proposal."
Stellantis is proposing $10,500 in inflation protection payments over the four-year period, while GM is offering $11,000, and Ford is suggesting $12,000.
Shares of STLA, GM and F are up 0.75%, 0.97% and 2.99% respectively in mid-day trading on Friday.