UAW threatens strike against auto giant Stellantis

United Auto Workers on Monday said several local chapters were prepared to file grievances against automaker Stellantis. The union said the company failed to abide by its commitments to investors and honor its contract with UAW members. The company’s actions could lead to a national strike against Stellantis, the UAW threatened in a news release.

Why is the UAW upset? The union accused Stellantis of reneging on a commitment, made in a contract agreement with UAW last year, to reopen an assembly plant in Belvidere, Ill. The plant was shut down indefinitely in early 2023. The union said Stellantis has gone back on its product commitments to rejuvenate the plant and has not been responsive in talks with the union. Specifically, the union claimed the company said it would not open a Mopar parts distribution center at the plant in 2024, commence stamping operations in 2025, or begin production of a mid-size truck at the plant in 2027.

Additionally, company sales and profits are both down, while CEO Carlos Tavares gave himself a more than 50 percent pay increase, UAW President Shawn Fain alleged in a video posted on Friday.

What has Stellantis had to say? In a statement to WORLD, Stellantis said that its plans for Belvidere will be delayed, but it firmly stood by the commitment and ongoing communication with the union. The company needs to stay competitive and all its investments need to be aligned with market conditions and a wide range of consumer demands, it said. It denied violating its commitments and said the union didn’t have a legal basis for a strike.

Dig deeper: Read Josh Schumacher’s report on a federal investigation of UAW President Shawn Fain.