UAW members at Challenge Manufacturing secure tentative agreement with wage hikes

Tentative Agreement Reached Between UAW Members and Challenge Manufacturing

Pontiac, MI — UAW workers at Challenge Manufacturing have successfully negotiated a tentative agreement that promises notable wage hikes, enhanced job security, and stronger union rights after enduring extended negotiations that nearly led to a strike.

The stalemate ended as UAW Local 653 members rallied together, compelling the company to reconsider its previous stance, which was initially labeled a "last, best, and final" offer by Challenge Manufacturing. This offer was met with firm resistance from the union.

"Four weeks ago, the company called their offer 'last, best, and final.' It wasn't good enough—and we fought back," stated James Gonzales, President of UAW Local 653. "We stayed united, rejected their proposal, and organized non-stop to hold them accountable. That pressure stopped them in their tracks. Now, we have a tentative agreement with 80% higher wage increases than what was on the table a month ago. Because we stood together in solidarity, we have a much stronger contract to bring to our members."

• Wage increases of up to $3/hour, translating to a 15% rise for most workers.
• Improved job security, with restrictions on temporary worker usage and pathways to permanent positions.
• Reinforced union security measures, ensuring seamless union integration for new hires and enhanced representation.

Challenge Manufacturing plays a crucial role in supplying parts for major automotive brands like GM and Stellantis, manufacturing components for models such as the Ram 1500 and Jeep Grand Cherokee. The workforce of 400 had been operating without a contract since June 10, with some earning less than typical fast-food wages in Oakland County.

"I'm proud of my UAW family at Local 653 who refused to settle for a bad deal," expressed UAW Region 1 Director LaShawn English. "They stood strong, communicated directly with members every step of the way, and nearly doubled the company’s so-called final offer from just four weeks ago. On top of that, they secured important gains on job security and union rights. That's the power of solidarity and smart organizing."

Details of the agreement will be disclosed to members before the upcoming ratification vote, with the bargaining committee unanimously supporting the deal.

"This contract sends a clear message," Gonzales stated. "We're done being disrespected. We're done being underpaid. And we're done settling for less than we deserve."

The collaboration between Challenge Manufacturing's Shop Chairman, Shop Committee, and UAW leadership at various levels was pivotal in reaching this agreement, emphasizing the commitment and resilience of the membership in advocacy at the negotiating table.