Stellantis says it is upholding promises made to UAW amid strike threats
FOX 2 - Despite the United Auto Workers' threat to strike against Stellantis over claims of contract violations, the automaker said it is fulfilling all commitments as promised.
The union alleges Stellantis is failing to uphold the contract, which was reached in 2023 after one of the biggest strikes in UAW history that lasted about six weeks. The agreement promised $19 billion in commitments to plants in Michigan, Illinois, Indiana, and Ohio.
The agreement between the UAW and Stellantis included getting the Belvidere Assembly Plant in Illinois running again after it was indefinitely shut down in late Feb 2023. However, Stellantis announced in August it would not be able to meet the anticipated timeline to reopen the facility, delaying all operations.
"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," according to the UAW. "The company’s failure to honor its commitments in the U.S. investment letter is a serious concern to all bargaining unit members."
The UAW also claims that Stellantis has not commented on whether the production of the next generation Dodge Durango will be moved outside the U.S., despite reports of the production allegedly being moved from the Detroit Assembly Complex to Canada.
Stellantis' North America COO Carlos Zarlenga countered UAW's allegations by claiming the company has fully adhered to the collective bargaining agreement.
According to a Stellantis news release on Monday, Zarlenga told UAW President Shawn Fain in an email that the company conducted a thorough analysis and concluded that the investments outlined in the contract "are subject to approval by the Stellantis product Allocation Committee and contingent upon plant performance," market changes, and ongoing consumer demand.
"The decision to delay the timeline for the Belvidere plant allocations is consistent with the current challenging automotive landscape and the plain language" of the contract, according to Stellantis. As for Durango production concerns, "the company has not made an announcement regarding the production allocation of the next generation Dodge Durango."
The latest escalation follows other complaints about Stellantis, including the company cutting a shift at its Warren plant. There was also a temporary layoff of workers at a Trenton plant while the company worked to balance its inventories.
The automaker has also offered buyouts to white collar workers amid concerns of a drop in profits.
The path toward a possible strike has already begun, with several grievances filed by dozens of local UAW groups. The union has also filed federal labor charges after Stellantis refused to provide information about alleged violations.
Fain says he will convene the Stellantis council in Detroit soon while other groups will be holding strike authorization votes.
"The investments and timelines are not absolute guarantees, as Fain has wrongly and repeatedly characterized, but contingent upon numerous factors, including market conditions," according to Stellantis.
Stellantis did announce $406 million in investments at three Michigan factories last week as it prepares to build its new electric Ram Pickup truck.
Further denouncing the UAW's claims, Stellantis said it has "announced investments of $6.2 billion in Kokomo, in 2022 and 2023, respectively. With those investments plus the recently announced +$400 million in Michigan, we have actually announced about 30% of the nearly $19 billion that is included in the 2023 agreement, not just 2% as Fain claims."
"To be clear, Stellantis has abided, and will continue to abide, by the agreement the parties reached in 2023," Zarlenga stated.
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