At Democratic Convention, UAW head threatens strike against Stellantis over delayed plant reopening
DETROIT– A high-profile spat between the United Auto Workers and Stellantis over the reopening of an Illinois factory complex has spilled over in the race for the American presidency and could trigger a strike against the car manufacturer.
In a speech at the Democratic National Convention Monday night, union president Shawn Fain accused the company of failing to deliver on promises to reopen a now-closed assembly plant in Belvidere, Illinois, just over an hour’s drive northwest of Chicago.
The Union won the reopening in contract negotiations last fall after a six-week strike at several factories owned by Jeep and Ram manufacturer Stellantis, as well as General Motors and Ford.
“Let me be clear. Stellantis must promises they made to America in our union contract,” Fain told the crowd at the Chicago convention. “The UAW will take whatever action is necessary at Stellantis or any other company to stand up and hold corporate America accountable,” he said, clearly hinting at the possibility of a strike.
In a statement Tuesday, Stellantis confirmed it has notified the UAW of plans to delay the Belvidere reopening, but said it is adhering to the commitment and “strongly objects” to the union’s allegations that it is violating the terms of the UAW contract.
“The UAW agreed to language that expressly allows the company to change product investments and employment levels,” spokeswoman Jodi Tinson said in the prepared statement. “Therefore, the union cannot legally strike at this time in violation of this letter.”
Stellantis said it is critical that a business case is developed for any investments that align with market conditions “to ensure the future competitiveness and sustainability of the company, which are necessary to retain U.S. manufacturing jobs.”
In a complaint filed with the company, the UAW said Stellantis indicated it will not open a parts distribution center in Belvidere this year, will not resume metal stamping operations there in 2025, and does not plan to begin producing a midsize truck at the Belvidere plant in 2027.
The delays violate the 2023 contract, the union said, and could last until 2028, after the current agreement expires. “The union demands that the company rescind its decision to postpone the aforementioned launches and immediately begin construction and financing of the Belvidere investments,” according to a complaint filed by the union.
Fain has sharply criticized Stellantis CEO Carlos Tavares for threatening layoffs as the company US sales are down this year.
US automaker Stellantis reported net profit fell by half in the first six months of the year, mainly due to lower sales and restructuring costs.
The car manufacturer, which made in 2021 Fiat Chrysler Corporation, the parent company of the merger of Fiat Chrysler and PSA Peugeot, reported net profits of 5.6 billion euros ($6 billion) in the period, down 48 percent from 11 billion euros in the same period last year. Revenues in the period fell 14 percent to 85 billion euros.
Fain, wearing a red T-shirt that read, “Trump is a thug. Vote for Harris,” told the convention that the union had won strong contracts and the plant’s reopening with the support of Vice President Kamala Harris and President Joe Biden.
“Scab” is a derogatory term for workers who cross union picket lines and work during a strike.
A message was left Tuesday seeking comment from the Trump campaign.