After several weeks of stalled negotiations, workers represented by the United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) at Challenge Manufacturing in Pontiac, Michigan have reached a tentative agreement with their employer. The deal follows increased pressure from UAW Local 653 members, who mobilized both coworkers and community members after the company initially refused to negotiate further.
“Four weeks ago, the company called their offer ‘last, best, and final.’ It wasn’t good enough—and we fought back,” said 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.”
The proposed contract includes wage increases of up to $3 per hour for most employees—representing an increase of at least 15%. The agreement also introduces stricter limits on temporary workers and clearer pathways to permanent employment. Additionally, it strengthens union security provisions so that new hires are brought into the union and worker representation is reinforced on the shop floor.
Challenge Manufacturing produces parts for vehicles such as the Ram 1500, Jeep Grand Cherokee, GMC Hummer EV, and Corvette for automakers General Motors and Stellantis. The plant’s approximately 400 workers had been without a contract since June 10. Some employees were earning as little as $18 per hour before this tentative deal.
“I’m proud of my UAW family at Local 653 who refused to settle for a bad deal,” said 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.”
Full details will be shared with union members ahead of a ratification vote scheduled for next week. The bargaining committee has recommended approval.
“This contract sends a clear message,” Gonzales said. “We’re done being disrespected. We’re done being underpaid. And we’re done settling for less than we deserve.”
Local leaders worked closely with regional and international representatives throughout negotiations to secure terms reflecting member priorities.
