On Monday, the United Auto Workers (UAW) announced that some local units representing Stellantis employees are preparing to file grievances and might initiate a nationwide strike. The union accuses Stellantis of failing to meet its production commitments.
The UAW stated that these local units represent tens of thousands of workers and the dispute centers around agreements Stellantis made in 2023 as part of a new labor contract. According to the UAW, Stellantis committed to building a $3.2 billion battery plant and investing $1.5 billion in a new mid-size truck factory in Belvidere, Illinois, and creating 5,000 new jobs in the U.S. by 2028 under the new contract, as reported in November 2023.
Stellantis has not yet responded to requests for comment. The UAW claims that the automaker is not proceeding with the Illinois investments according to the agreed schedule, although specific dates were not mentioned.
Last month, the U.S. Energy Department announced plans to award Stellantis $334.8 million to convert the closed Belvidere Assembly plant for electric vehicle production and $250 million to upgrade the Indiana Transmission Plant in Kokomo for EV components.
The UAW contends that Stellantis has not adhered to its product commitments for Belvidere since 2023 and has been uncooperative in negotiations with the union. The union warned that this breach of contract threatens all other investment commitments made by the company.
UAW President Shawn Fain addressed the issue during a prime-time speech at the Democratic National Convention, stating, “Let me be clear: Stellantis must keep the promises they made to America and our union contract. The UAW will take whatever action is necessary to hold corporate America accountable.”
Earlier this month, Stellantis announced the layoff of up to 2,450 workers from its Warren Truck assembly plant near Detroit, as production of the Ram 1500 Classic truck comes to an end. The company also revealed it is offering a new round of voluntary buyouts to its U.S. salaried employees as part of a broader cost-cutting strategy led by CEO Carlos Tavares.
Source: Reuters
