UAW Threatens Nationwide Strike Against Stellantis

On Monday, the United Auto Workers (UAW) union declared that several local units representing workers at Stellantis are preparing to file grievances and could potentially launch a nationwide strike. The union accuses the automaker of failing to honor production commitments outlined in their 2023 labor agreement.

Dispute Over Investment Promises:

The UAW stated that the local units represent tens of thousands of workers. The core of the dispute revolves around agreements Stellantis made in 2023 as part of a new labor contract.

According to the UAW, Chrysler-parent Stellantis had agreed to build a new $3.2 billion battery plant and invest $1.5 billion in a mid-size truck factory in Belvidere, Illinois. The deal also included a promise to add 5,000 U.S. jobs by 2028.

However, the UAW alleges that Stellantis has not adhered to the previously agreed timetable for the Illinois investments. Specific dates were not disclosed, and Stellantis did not immediately respond to requests for comment.

Federal Funding and Unmet Commitments:

Last month, the U.S. Energy Department announced plans to award Stellantis $334.8 million to convert the shuttered Belvidere Assembly plant to electric vehicle (EV) production and $250 million to upgrade the Indiana Transmission Plant in Kokomo for EV component manufacturing.

Despite these developments, the UAW claims that since 2023, Stellantis has reneged on its product commitments at Belvidere and has been unresponsive in discussions with the union to ensure the project stays on track. The union warned that this “glaring violation of the contract imperils all other investment commitments the company has made.”

UAW President’s Warning:

During a prime-time address at the Democratic National Convention on Monday night, UAW President Shawn Fain addressed the issue: “Let me be clear: Stellantis must keep the promises they made to America and our union contract.

And the UAW will take whatever action necessary at Stellantis or any other corporation to stand up and hold corporate America accountable.”

Recent Layoffs and Cost-Cutting Measures:

Earlier this month, Stellantis announced the layoff of up to 2,450 factory workers at its Warren Truck Assembly Plant near Detroit as the company ends production of the Ram 1500 Classic truck.

In addition, Stellantis recently offered a new round of voluntary buyouts to its U.S. salaried workers as part of a broader series of cost-cutting measures implemented by CEO Carlos Tavares at the company’s American operations.