Historic UAW Labor Agreements Lead to Reopening of Belvidere Auto Plant and 25% Wage Increase for Auto Workers

Closure Reversed Following Six-Week Strike; Temporary Workers Also to See Significant Wage Boosts Amid Revitalized Union Activity

The United Auto Workers union achieved significant success through labor agreements with Stellatis, GM, and Ford, resulting in the reopening of the Belvidere auto plant in Illinois that was closed in February.
The Belvidere auto plant will reopen as an assembly plant in 2027, manufacturing a new midsize pickup truck. In the meantime, it will produce batteries for electric vehicles and function as a parts depot for the company.
The labor agreements yielded a 25% wage increase for Ford, Stellantis, and General Motors employees, a substantial leap from an initial offer of 6%. The wage increase also extends to temporary workers, allowing them up to a 50% wage increase.
The labor agreements ended a heritage two-tier wage system where newer employers were paid substantially less than older employees. However, under the new agreement, new employee pay will now match senior employee pay in three years instead of eight.
President Joe Biden, who reportedly championed the reopening of the Belvidere plant, praised the outcome as a major step in ensuring that technological development in the auto sector does not lead to job losses or factory closures.