An arbitrator has ruled that Stellantis unfairly upsold its own vehicles to members of the UAW through its employee vehicle program and has ordered the company to bring prices back down and reimburse anyone who overpaid.
In the 2023 contract between the United Auto Workers and Stellantis, the union negotiated to have the same access to the "Drive with Pride" program afforded to white-collar employees of the automaker. The program then allowed Stellantis employees — unionized and not — to lease Stellantis brand vehicles (such as Chrysler, Dodge, Jeep and Ram) at cheaper monthly rates than the public through an employee discount. The program rolled out in phases, beginning in 2024.
However by early 2026, the program was briefly suspended following
reports of mistreatment of some of the vehicles, and employees could no longer place orders on company cars. When the program was reinstated in late spring, the lease rates increased tremendously for members of the UAW, with potential monthly payments higher by hundreds of dollars for hourly union members in some instances.
So the union filed a grievance in May and took it to an arbitrator, who ruled the company was wrong to ask one group of employees to pay more than their white-collar counterparts.
In an arbitration ruling given Wednesday, Sept. 2, the UAW's complaint was upheld. Stellantis has been ordered to work with the union to bring prices back down — and repay anyone who overpaid when placing a vehicle order in the last several months under the new, higher rates.
The arbitrator wrote that Stellantis increasing prices across the board for UAW members was unfair and, in essence, "removed (UAW members) from the existing vehicle lease program." The company claimed prices needed hiking because vehicles were sometimes stolen or returned in poor condition, making the program cost the company more. For drivers who had their vehicles stolen or damaged, Stellantis would be within its right to charge a premium on a case-by-case basis — but hiking costs for the entire UAW was wrong, the arbitrator ruled.
The arbitrator also reviewed how much the program had cost the company and found that "costs attributable to most of the (UAW-represented workers) were no higher than for the non-represented group."
"The Company's clever 'methodology' clearly was an exercise of unequal application, disadvantaging the vast majority of represented employees who comply with program terms and conditions and cost it no more than their non-represented counterparts."
Rich Boyer, the UAW's vice president and chief of the Stellantis Department, told the Detroit Free Press that he was pleased with the outcome of the arbitration, and that he saw the higher prices as cut-and-dry inequity.
"It was a great win for the membership and the members of the Stellantis Department," Boyer said of the ruling. "It showed, when we work together, that we can accomplish great things. It was a team win, and it was a win by all that were involved."
Stellantis, on the other hand, was less enthused.
Stellantis spokesperson Ann Marie Fortunate, in an email to the Free Press, said: "While Stellantis is disappointed with the arbitration decision regarding the Drive with Pride program, we respect the process and will meet with the union in the coming weeks to discuss next steps for implementation."
Liam Rappleye covers Stellantis and the UAW for the Detroit Free Press. Contact him: LRappleye@freepress.com.
This article originally appeared on Detroit Free Press: Stellantis upcharged UAW workers on its own vehicles, arbitrator rules
