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Stellantis STLA-0.42% is pushing back against the United Auto Workers (UAW) claims that it is going back against the committments it made in its labor deal with the union’s members, saying it “firmly” stands by its promises.
On Monday, the UAW said locals representing tens of thousands of workers are prepared to file grievances against the automaker, which is the first step toward workers going on strike. In a statement, the union pointed specifically to Stellantis’s STLA-0.42% pledge to reopen the Belvidere Assembly plant in Illinois, which it said was delayed.
“Let me be clear: Stellantis must keep the promises they made to America in our union contract,” UAW President Shawn said Monday night while speaking at the Democratic National Convention. “And the UAW will take whatever action necessary at Stellantis or any other corporation to stand up and hold corporate America accountable.”
The Belvidere plant in Illinois was shut down in March 2023, although Stellantis agreed to commit almost $5 billion to help reopen it as part of the United Auto Workers union’s contract won last fall. Stellantis said it would build a new $3.2 billion battery plant, invest $1.5 million to convert the plant to make electric vehicles, and build a $100 million parts distribution center, according to the UAW.
Stellantis on Tuesday said it is “critical” that the company aligns its investments with market conditions to stay competitive in the industry. The automaker also confirmed that it informed the UAW its investments would be delayed.
The union said that the Belvidere Consolidated Mopar Mega Hub will not launch this year, and that stamping operations at the Belvidere Mega Hub will not begin in 2025 as previously expected. Plans to convert the Belvidere plant to make electric midsize trucks by 2027 — a project that has been given more than $583 million in federal funding and is expected to employ 1,450 union workers — has also been delayed.
Stellantis on Tuesday that it “strongly objects” to the UAW’s claims it has violated the committments laid out in the union’s 2023 contract, which came about after months of rolling strikes against the Detroit Three automakers.
“In fact, the UAW agreed to language that expressly allows the Company to modify product investments and employment levels,” Stellantis said. “Therefore, the Union cannot legally strike over a violation of this letter at this time.”
Earlier this month, Stellantis said it would lay off as many as 2,450 workers later this year and end production of the Ram 1500 Classic, which was being manufactured in Warren, Michigan.