The United Auto Workers union stated that some local units representing Stellantis workers prepared to file grievances and could launch a nationwide strike, according to Reuters.
On Monday, the UAW accused the automaker of failing to meet production commitments. The locals represent tens of thousands of workers, with the dispute revolving around agreements the union says Stellantis made in 2023 as part of a new labour deal.
Stellantis agreed to build a new $3.2-billion battery plant and invest $1.5 billion in a new midsize truck manufacturing plant in Belvidere, Illinois. The company also promised to create 5,000 US jobs by 2028 under a new contract deal, the UAW announced in November 2023.
Last month, the US Department of Energy said it planned to give Stellantis $334.8 million to convert the closed Belvidere Assembly Plant to make electric vehicles (EVs) and $250 million to convert the Indiana Transmission Plant in Kokomo to make EV components.
The union stated that since 2023, “the company has gone back on its product commitments at Belvidere, and has been unreceptive in talks with the union to stay on track.” The UAW added that “this glaring violation of the contract imperils all of the other investment commitments the company has made.”
UAW President Shawn Fain addressed the issue during a prime-time speech at the Democratic National Convention on Monday night.
“Let me be clear: Stellantis must keep the promises they made to America and our union contract. And the UAW will take whatever action necessary at Stellantis or any other corporation to stand up and hold corporate America accountable.
Earlier this month, Stellantis said it was laying off about 2,450 workers at its Warren Truck assembly plant outside Detroit as the automaker halted production of the Ram 1500 Classic truck.
