UAW threatens to strike Stellantis over failing to honor union contract
DETROIT (FOX 2) - A strike against a Detroit automaker might be looming after the United Auto Workers union said it was prepared to file grievances over a failure to honor its contract.
When the UAW secured a deal with Stellantis in 2023, it secured a right to strike if the automaker failed to keep its investment commitments, including keeping an assembly plant in Illinois open.
The deal included keeping the Belvidere Assembly running after it was idled earlier in the year. Since the UAW's contract was ratified, Stellantis "has gone back" on promises at the facility, while also being "receptive in talks with the union" to stay open, the union's website said.
"This company made a commitment to autoworkers at Stellantis in our union contract, and we intend to enforce that contract to the full extent," said UAW President Shawn Fain. "On behalf of autoworkers everywhere, we’re standing up against a company that wants to go back on its commitments and drive a race to the bottom at the expense of the American worker."
A strike may be authorized if a grievance is filed and works its way through the process.
According to the UAW's website, UAW Local groups that could file complaints include ones at Toledo, Assembly, Warren Truck, Sterling Heights Assembly, Detroit Assembly, the Mack truck plant, and one in Kokomo, Indiana.
"The problem isn’t the market. At GM and Ford, auto sales are up. And the problem isn’t the autoworkers. The problem is this man, Carlos Tavares," Fain said in a UAW video, calling out the CEO of Stellantis.
Stellantis said it would be temporarily laying off workers at its Trenton plant as part of an idling of the facility last week. Thousands of other Warren union workers were also to be laid off.
It has also offered buyouts to some white collar workers amid a drop in profits.
On its website, the UAW urged Stellantis union workers to prepare for a potential strike.
It's something UAW worker Eugene Garnett says is already on the minds of some employees.
"It’s one of the things where it’s like ‘ohhh, we shouldn’t talk about it,’" Garnett said.
Stellantis responded via a statement:
"To ensure the Company’s future competitiveness and sustainability, which are necessary to preserve U.S. manufacturing jobs, it is critical that the business case for all investments is aligned with market conditions and our ability to accommodate a wide range of consumer demands. Therefore, the Company confirms it has notified the UAW that plans for Belvidere will be delayed, but firmly stands by its commitment. As always, the Company is committed to engaging with the Union on a productive, respectful and forward-looking dialogue.
"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. 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."
Stellantis to offer buyouts to U.S. employees after reporting drop in net profits
Employees who are eligible for the buyout will be notified of the buyout options in August.