Sep 17, 2024, 6:20 AM
Sep 16, 2024, 6:10 PM

UAW escalates fight with Stellantis over factory commitments in Illinois

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Highlights
  • The UAW filed federal labor charges against Stellantis over alleged factory commitment violations in Illinois.
  • Concerns have arisen regarding the potential relocation of Dodge Durango production outside the U.S. and the future of the Belvidere assembly plant.
  • The union threatens to strike to enforce contractual commitments, emphasizing the importance of U.S. production and job security.
Story

The United Auto Workers (UAW) has intensified its conflict with Stellantis by filing federal labor charges regarding factory commitments in Illinois. The union claims that Stellantis is planning to relocate some SUV production outside the U.S., which contradicts commitments made in a contract reached after a six-week strike last fall. The UAW is particularly concerned about the future of the Belvidere assembly plant, where they allege the company is withholding information about reopening plans and the establishment of a parts distribution center and electric vehicle battery plant. Union President Shawn Fain emphasized that the contract allows the UAW to strike over breaches of commitments to U.S. production. Stellantis, however, has denied any wrongdoing, asserting that it is managing its production strategy to remain competitive. The company has stated that it still intends to reopen the Belvidere plant and establish the promised facilities, but has cited unfavorable market conditions as a reason for delays. The stakes are high, with over 2,700 jobs on the line. Stellantis has committed to reopening the Belvidere Assembly by 2027 and producing up to 100,000 midsize pickups annually. Additionally, the company has pledged to invest $18.9 billion in U.S. operations through 2028, which includes plans for a battery factory and parts hub. Concerns among union members are growing, particularly regarding the potential for production to shift to lower-cost facilities in Mexico. The UAW's actions reflect a broader anxiety about job security and the fulfillment of contractual obligations by Stellantis, as the union seeks to hold the company accountable for its commitments.

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