United Auto Workers warns of possible strike against Stellantis
The United Auto Workers union has urged Stellantis workers to prepare for a possible strike over the company’s alleged failure to meet contract obligations.
Fox – 2 Detroit
Stellantis confirmed Tuesday that it intends to postpone — but not cancel — plans to reopen the Belvedere assembly plant, saying in a statement that the United Auto Workers union cannot strike over the issue.
The statement came a day after the United Auto Workers union suggested it might launch a national strike against the owner of the Jeep, Ram, Chrysler, Dodge and Fiat brands, and followed a fiery speech by UAW President Sean Fine at the Democratic National Convention in which he criticized the automaker, which has denied violating its obligations.
Stellantis, which has seen its U.S. sales and profits decline this year, cited market conditions in its explanation, saying: “To ensure the company’s future competitiveness and sustainability, which is essential to maintaining manufacturing jobs in the United States, it is critical that the business case for all investments is aligned with market conditions and our ability to meet a broad range of consumer demands. Therefore, the company confirms that it has notified the United Auto Workers union that its Belvedere plans will be delayed, but stands firm in its commitment.”
In a video address last week, Fine insisted that the problems at Stellantis were the fault of CEO Carlos Tavares and had nothing to do with the market, pointing to Ford Motor Co. and General Motors Co., which have not seen the same sales declines.
Belvedere’s commitments, which include a midsize pickup truck and a massive parts center, stem from a collective bargaining agreement reached last year between the union and the automaker and the union’s strikes against Stellantis, Ford and GM. Belvedere’s fate had been a major sticking point in the talks, and the agreement to reopen the idled assembly plant, which previously produced the Jeep Cherokee, was a major victory for the union.
But Stellantis has denied the claim that the company breached its obligations.
“The company has not violated the commitments it made in the Investment Letter included in the UAW’s 2023 Collective Bargaining Agreement, and strongly disputes the union’s allegations. In fact, the UAW agreed to language that explicitly allows the company to adjust product investments and staffing levels. Therefore, the union cannot legally strike for violating this letter at this time,” according to the statement from union spokeswoman Judy Tinson.
The automaker and the unions have offered conflicting accounts of the company’s approach. “As always, the company is committed to engaging with the union in a productive, respectful, forward-looking dialogue,” the company said. “Since certification, the company has backed away from its product commitments at Belvedere and has been receptive to talks with the union to stay on track,” the union said.
The union said Monday that representatives of the United Auto Workers union, which represents tens of thousands of workers at its plants in Detroit, Toledo and elsewhere, were preparing to file complaints about the situation and that a strike could be approved after the case goes through the complaint process.
Contact Eric D. Lawrence: [email protected]. Become a subscriber. Submit a letter to the editor at freep.com/letters.
More Stories
JPMorgan expects the Fed to cut its benchmark interest rate by 100 basis points this year
Shares of AI chip giant Nvidia fall despite record $30 billion in sales
Nasdaq falls as investors await Nvidia earnings