Dive Brief:
- The United Auto Workers announced that several locals representing “tens of thousands” of people are prepared to file grievances against Stellantis, which could lead to a national strike, according to a Monday press release.
- The union claims the automaker has failed to keep its product and investment commitments in relation to its Belvidere Assembly Plant. The factory was idled in February 2023, but as part of the latest UAW Stellantis agreement, the company agreed to reopen it. Now, the automaker is delaying those plans.
- “During 2023 National Negotiations the parties agreed to the investment plan for Belvidere to address job security concerns impacting bargaining unit members throughout the entire system,” the grievance states. “The Company’s failure to honor its commitments in the U.S. Investment letter is a serious concern to all bargaining unit members.”
Dive Insight:
Stellantis has informed the UAW that its planned investments at Belvidere will not happen within the previously anticipated timeline, including the launch of Belvidere Consolidated Mopar Mega Hub in 2024, its stamping operations in 2025, as well as production of a midsize truck at the facility in 2027, the UAW release states. The company was awarded $335 million from the Department of Energy in July to convert the Belvidere facility for electric vehicle production.
While the Belvidere plans are on hold, Stellantis says it “firmly stands by its commitment” in a statement to Automotive Dive.
“The Company has not violated the commitments made in the Investment Letter included in the 2023 UAW Collective Bargaining Agreement and strongly objects to the Union’s accusations,” the statement reads. “In fact, the UAW agreed to language that expressly allows the Company to modify product investments and employment levels. Therefore, the Union cannot legally strike over a violation of this letter at this time.”
The UAW alleges once an issue has been taken through the grievance procedure, locals may authorize a strike under the terms of the national contract, according to the release.
Some of the largest locals that may file grievances include:
- UAW Local 12 (Toledo Assembly, Toledo, Ohio)
- Local 140 (Warren Truck, Warren, Michigan)
- Local 1700 (Sterling Heights Assembly, Sterling Heights, Michigan)
- Local 7 (Detroit Assembly Complex – Jefferson, Detroit)
- Local 51 (Detroit Assembly Complex – Mack, Detroit)
- Local 685 (Kokomo Transmission, Kokomo, Indiana)
- Local 1166 (Kokomo Casting, Kokomo, Indiana)
Meanwhile, UAW President Shawn Fain berated Stellantis CEO Carlos Taveres in a video Monday, citing the company’s poor performance amid the executive’s record compensation.
“The truth is, Stellantis doesn’t want to invest in America,” Fain said. “Stellantis is in a race to the bottom, driving up prices while cutting staff so overseas executives like Carlos Tavares can have a bigger payday.”
Last week, the automaker announced it is preparing to lay off up to 2,450 workers at its Warren Truck Assembly Plant in Michigan as production of the plant’s Ram Classic 1500 pickup comes to an end in 2024. The company continues to struggle in North America, weighing on its net profits during the first half of the year.
