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Will the UAW strike Stellantis?
Rhetoric is heating up from the union as autoworkers and the UAW leader Shawn Fain says Stellantis is not holding up their end of the bargain that both parties negotiated last year. A rally was held Thursday in solidarity with other workers at plants that could be impacted.
STERLING HEIGHTS, Mich. (FOX 2) - Is another strike brewing in the Michigan auto industry?
The United Auto Workers Union is threatening to do so, asking members of manufacturing plants owned by Stellantis to approve leadership to authorize a strike against the company. The UAW and President Shawn Fain say Stellantis has not kept up its end of the bargain that it agreed to in a contract that was signed in 2023.
On Thursday, hundreds of members of Local 1264 in Sterling Heights convened around Fain and showed solidarity for those that could be impacted by decisions made by the automaker.
"They want you to think that a strike won't hurt. Let me assure you on one thing, a strike will cripple this company," said Fain. "And if we have to strike, it's Stellantis's decision to do so because they're not honoring their commitment."
On Thursday, Stellantis tumbled to its lowest value in two years. Meanwhile, both the UAW and dealers have taken issue with CEO Carlos Tavares, who has been under fire as the company reports low earnings.
The Local 1264 president believes the U.S. is starting to take notice.
"The country is seriously listening to what we're talking about," said Doug McIntosh.
There are two issues with Stellantis that the UAW says violates their contract: failing to reopen the shuttered Illinois assembly plant in Belvidere and stopping production of the Dodge Durango in Detroit.
Stellantis has contended they are not in violation of their contract with the UAW and, while reopening the Illinois plant where they assemble the Jeep Cherokee is delayed, is still happening.
The UAW has filed a grievance with Stellantis over the dispute. It can take months for a formal grievance to work its way through the board that considers it. There are legal questions about what constitutes reopening a plant or moving production.