STLA - UAW strike: White House team to reach Detroit this week; Stellantis offer rejected

2023-09-18 03:41:34 ET

The United Auto Workers' strike against Detroit's Big 3 automakers has entered its fourth day, garnering support from the White House and Democratic politicians, although negotiations remain deadlocked.

A team from the White House is expected to reach Detroit early this week to help mediate contract talks . The team is led by White House adviser Gene Sperling and acting Labor Secretary Julie Su.

"Sperling and Su are engaging with the parties by phone, as they have for weeks, with the intention of being there early in the week," an administration official told NBC News.

Meanwhile, Jeep maker Stellantis ( NYSE: STLA ) on Saturday sweetened its proposal to the UAW by offering nearly 21% pay raises over the course of the contract, including an immediate 10% hike.

The proposal, which matches proposals from Ford ( NYSE: F ) and General Motors ( NYSE: GM ), would continue to offer profit sharing to workers.

The companies' offers are about half the 40% wage hike that workers are demanding through 2027. UAW President Shawn Fain said Stellantis' ( STLA ) offer was a "no-go".

The UAW's strike is of particular importance, given the 2024 presidential race. Biden - who said automakers' record profits should mean record contracts for the UAW - would like the union's endorsement as it would be key in securing blue-collar votes.

"Our endorsements are going to be earned," said Fain. "We expect action, not words."

While talks resumed with GM ( GM ) on Sunday, the UAW will return to the negotiating table with Stellantis ( STLA ) and Ford ( F ) on Monday. Note that Ford ( F ) laid off 600 employees at its Michigan plant because of the strike .

More on the Detroit strike

• UAW justifies wage demands by pointing to CEO pay raises. How high were they?
• Ford, GM, Stellantis record profits should ensure record contracts: Biden
• Ford to layoff about 600 employees in relation to UAW strike
• UAW Strike, Oil Cuts Are Fed's New Inflation Nightmare
• Ford: Path To Ruin When Opportunity Abounds
• General Motors: Impacts From UAW Strike

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