UAW fight with Stellantis escalates as union files unfair labor charges over factory commitments

[September 17, 2024]The United Auto Workers' rift with Stellantis widened Monday as the union filed federal labor charges over possibly moving production of an SUV out of the country.

The union said it filed charges with the National Labor Relations Board accusing Stellantis of illegally refusing to release information about plans to move Dodge Durango production from a Detroit factory to one in Canada.

The union also has filed grievances over the Durango and company delays in reopening a vehicle assembly plant in Belvidere, Illinois, as well as build a parts distribution center and electric vehicle battery plant there. The UAW has threatened to strike on that issue.

The union says it based the unfair labor practices charge on media reports that the Durango would be moved from the Jefferson North Assembly Plant in Detroit.

The company committed to the Belvidere additions as well as Durango production in the union's new contract, reached last fall after a six-week strike, the UAW said.

In a statement, union President Shawn Fain said the contract gives the UAW the right to strike over contractual commitments to build vehicles in the U.S. “Now Stellantis wants to go back on the deal,” he said. “We intend to enforce our contract and to make Stellantis keep the promise.”

Stellantis denied that it's violating the contract and said that like all automakers, it is managing how and when it brings new vehicles into the market in order to be competitive. “We will communicate our plans to the UAW at the appropriate time,” the company said in a statement.

An entrance to the Stellantis factory in Belvidere. Ill., is shown on July 10, 2023. (AP Photo/Charles Rex Arbogast, File)

Many union members fear that if the automaker breaks its commitment to restart the Belvidere factory, it won’t keep other promises made in the new United Auto Workers contract, which runs through April of 2028. They worry, in particular, that the automaker could move production to factories in lower-cost Mexico.

Stellantis has said it still intends to reopen Belvidere and also build a battery plant and parts warehouse there, but needs to delay them because of unfavorable market conditions. It did not give dates for the changes. At stake are over 2,700 jobs.

The company agreed to reopen Belvidere Assembly in 2027, with plans to build up to 100,000 electric and gas-powered midsize pickups annually. It also agreed to open the parts hub this year and the battery factory in 2028. In all, the company pledged $18.9 billion of U.S. investments during the contract, which runs until April 2028.

It also agreed to build gas and electric versions of the next generation of Durango at Jefferson North starting in 2026.

The letter said Stellantis and the UAW agree that investment and jobs in North America are “contingent upon plant performance, changes in market conditions, and consumer demand continuing to generate sustainable and profitable (sales) volumes.”

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