United Auto Workers union leaders on Thursday agreed to send a tentative contract agreement with Chrysler-parent Stellantis (STLAM.MI) to members for a ratification vote, a source told Reuters.
UAW President Shawn Fain plans to unveil additional details of the labor agreement that includes a 25% pay hike and improved retirement benefits and runs through April 2028 in remarks that will air on social media at 7 p.m. ET (2300 GMT).
The source confirmed the UAW tentative agreements with Stellantis, General Motors (GM.N) and Ford (F.N) include an additional ratification bonus of around $110 per day for employees who were on strike or laid off during the work stoppage that began in mid-September.
That is on top of the $5,000 bonus hourly workers will get on ratification along with an 11% immediate pay hike.
Stellantis will also offer many hourly employees a company-subsidized lease program that will make it more affordable to drive a new vehicle, similar to programs U.S. automakers offer for white collar employees, the source added.
Ford production workers are getting a $1,500 voucher they can use toward the purchase of a new vehicle.
The UAW will spell out details of Stellantis's investment plans through 2028, including its agreement to reopen a Belvidere, Illinois, assembly plant with two shifts to build a new mid-size truck and a new battery plant in Belvidere.
It also agreed to make new investments in plants across the country, including its Trenton, Michigan, engine plant and a Toledo, Ohio, parts plant. The UAW said this week that Stellantis investment commitments total about $19 billion, but that does include some previously announced plans.
