LDN - Business

Stellantis, auto workers dispute over Illinois factory could expand nationwide

[October 15, 2024] By Kevin Bessler | The Center Square

(The Center Square) – A bitter dispute between automaker Stellantis and union auto workers continues with the plant in Belvidere becoming Ground Zero.

As part of a deal with the United Auto Workers, Stellantis agreed to invest nearly $5 billion in the area, retooling the auto plant and constructing a parts distribution center and an EV battery plant. The plant was expected to create 1,300 jobs and launch in 2028. But Stellantis announced in August that the reopening would be delayed to ensure the company’s sustainability.

The United Auto Workers blames Stellantis’ decision to delay the reopening on “gross mismanagement,” while Stellantis claims it is industry-wide volatility and slowing EV adoption that’s causing plans to change.

Recently, Gov. J.B. Pritzker and other public officials urged Stellantis to restart the plant as originally planned.

“Ensuring auto workers get back to work with higher wages, good benefits, and valuable opportunities in a growth industry remains one of my highest priorities. That’s why I call on Stellantis to live up to the commitments it made a year ago to Illinois workers,” Pritzker said in a statement.

U.S. Sen. Bernie Sanders, I-Vermont, made a stop in Belvidere on Friday, addressing about 300 auto workers and accusing the automaker of not upholding their end of the bargain.

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Big Three automaker Stellantis wants to buy out 6,400 non-union employees. The picture above shows the new 2024 Jeep Gladiator Mojave X, introduced at the 2023 Detroit Auto Show.
Photo courtesy of Stellantis

“This is a company that spent over $8 billion on stock buybacks and dividends this year,” said Sanders. “This is a company that can and must keep its promise to the workers and reopen this plant in Belvidere.”

The UAW has filed grievances and even floated the idea of a nationwide strike. UAW president Shawn Fain said that is not what workers want.

“I want to be very clear on this point, our goal is not to strike,” said Fain. “Our goal is to bring jobs and products back to Belvidere that belong here.”

Stellantis has announced that it was rejecting a union proposal to pay workers their salaries when factories were idle, a practice the company said led to the bankruptcy filings by two of the “Big 3” automakers.

The company is axing 1,100 jobs in Warren, Michigan, and has revealed that more job cuts could be on the way.

Stellantis CEO Carlos Tavares told reporters at the Paris Motor Show Monday that the company is fixing its slowing U.S. sales at the right pace. He also reiterated that he plans to retire when his contract expires in 2026.

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