United Auto Workers (UAW) has reached a tentative agreement with Stellantis, pending approval from the union’s top leaders. The deal includes reopening Stellantis’ Illinois plant, which was closed earlier this year, leaving 1,300 workers without jobs. The proposed accord is expected to follow a template set by the UAW and Ford, including a 25% wage hike over the 4-1/2-year contract. No public announcement of the deal is expected until later in the day. Strikes have been ongoing for seven weeks.

UAW President Shawn Fain has vowed to reverse the decision to close the Belvidere plant and has criticized Stellantis management over the issue. The Biden administration and the state of Illinois have offered subsidies to help re-tool the factory. The deal is contingent on expected state and local tax incentives. The UAW is expected to unveil the details of the tentative deal later today, which will include provisions on the use of temporary workers. Stellantis has also agreed to significant product commitment and investment.

Senior union leaders, including Fain, will have a video conference with local UAW officials to explain the contract terms to workers. The deal is also expected to include investments in other U.S. plants, such as the Trenton engine plant. Talks with General Motors are ongoing, with negotiators expected to reconvene later in the day. The strike has involved 45,000 workers and has cost billions of dollars to the industry.

The protracted negotiations with GM and Stellantis have been focused on issues such as pensions and the speed at which temporary workers would gain permanent employment. Fain has accused the Detroit Three automakers of neglecting workers while enriching executives and investors. The UAW’s demands have been met with concerns from the automakers about increased costs and a disadvantage compared to nonunionized companies like Tesla and Toyota.

Ford expects the new contract to add $850 to $900 in labor costs per vehicle. Tesla already had a labor cost advantage before the negotiations began. The UAW has said that the Ford deal would result in total pay hikes of more than 33% when factoring in compounding and cost-of-living adjustments. The strike initially started at less significant plants but eventually spread to major money-making facilities.

The UAW’s initial demands included pay increases, cost-of-living adjustments, job or pay guarantees, an end to lower wages for lower seniority workers, and defined benefit pensions. The details of the tentative agreement with Stellantis will be announced later today.