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UAW turns up pressure on Stellantis after Warren Truck's cut of second shift
Stellantis also points to a newly announced $97 million investment in Warren Truck which is part of a more than $400 million infusion into three Michigan plants.
DETROIT (FOX 2) - The United Auto Workers Union is threatening to strike against Stellantis over claims the automaker is failing to uphold last year's contract that required investment across 15 different facilities.
Speaking to members Tuesday night, UAW President Shawn Fain said Stellantis was trying to "trample" on their agreement, which promised $19 billion in commitments to plants in Michigan, Illinois, Indiana, and Ohio.
At one plant in Belvidere, which has been idle for years, a guarantee was made to bring the plant back online. Instead, according to Fain, the company is "now admitting they do not plan to honor those plans."
In threatening to go on strike over unfulfilled commitments at one plant, the UAW says its enforcing a contract at all plants.
"We all sacrificed something to win these product and investment commitments," Fain said. "We all are at risk if the company can violate these agreements. And we all have a responsibility to stick together to force this company to keep the promise."
The path toward a possible strike has already begun, with several grievances filed by dozens of local UAW groups. Fain says he will convene the Stellantis council in Detroit soon while other groups will be holding strike authorization votes.
In response to the threat, Stellantis issued a statement that it was "not surprising" the financial commitments secured during negotiations in 2023 had not been fully realized. It also poured cold water on a claim from the UAW president that Stellantis's decision to move production of the company's Dodge Durango from Detroit Assembly Complex to Canada was not true.
"However, Shawn Fain continues to allege that the company has violated the contract, but to date has provided no data or information to back up his claims. Instead, he continues to willfully damage the reputation of the company with his public attacks which is helpful to no one including his members."
It added: "We would all be better served if these issues were addressed across the table with productive, respectful and forward-looking dialogue. A strike does not benefit anyone – our customers, our dealers, the community and, most importantly, our employees."
UAW demands Stellantis to uphold contract promises with rally in Sterling Heights
The UAW emphasized that the rally was not a picketing strike. However, "once the grievance procedure is exhausted under the national contract, the union may authorize a strike," according to the union.
Trouble brewing between UAW-Stellantis
The latest escalation of tensions 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.
Fain says the UAW has also filed federal labor charges after Stellantis refused to provide information about alleged violations. "That is illegal," he said Tuesday night.
The automaker has also offered buyouts to white collar workers amid concerns of a drop in profits.
Stellantis did announce $406 million in investments at three Michigan factories last week as it prepares to build its new electric Ram Pickup truck.
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UAW members rally outside Stellantis Plant in Sterling Heights
The UAW says Stellantis is not upholding commitments established in the contract ratified by the union in Nov. 2023.