Shares of Stellantis N.V.
STLA,
gained 0.5% in midday trading, after the Netherlands-based automaker disclosed the “first economic proposal” it presented the United Auto Workers union, which included a yearly wage increases totaling 14.5%. The proposal also includes a one-time $6,000 “inflation protection” payment in the first year of the contract, $4,500 in inflation protection payments over the final three years and Juneteenth as a paid holiday. In additional, the starting wage for supplemental employees would rise 26.7% to $20 an hour, and the time it might take in-progression employees to reach the maximum wage rate will drop to six years from eight years. “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 said in a statement. “It also protects the company’s future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles.” On Thursday, the UAW said rival automaker General Motors Co.’s
GM,
proposal of a 10% wage increase and other payments was “insulting.” Stellantis shares have rallied 11.3% over the past three months while GM’s stock has shed 8.6% and the S&P 500
SPX,
has tacked on 4.0%.
