During his primetime speech at the Democratic National Convention, United Auto Workers president Shawn Fain used the unique opportunity to praise Democratic presidential candidate Kamala Harris and her running mate Tim Walz and address a key issue affecting the union he runs.
In front of millions of television viewers, Fain took the opportunity to remind Stellantis (STLA) of the provisions in their landmark contract that was signed in November 2023; a promise to reopen the shuttered Belvedere Assembly Plant in Belvedere, Illinois.
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"But a year later, one company [Stellantis] wants to back on their commitments on our contract," Fain told the crowd at the DNC.
"Let me be clear: Stellantis must keep the promises they made to America in 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."
The UAW bites back at Stellantis
Following Fain's explosive speech at the DNC that called out Stellantis in front of millions of primetime TV viewers, the UAW filed unfair labor practice charges with the National Labor Relations Board (NLRB) on Sept. 16.
The basis for the charges stems from what it calls "Stellantis’ illegal refusal to provide information about the company’s plans regarding product commitments it made in the UAW’s 2023 collective bargaining agreement."
The union says that several local chapters representing thousands of Stellantis workers have filed grievances with the automaker over plans to move production of the Dodge Durango SUV overseas. Currently, the heavy Dodge is built at Stellantis's Detroit Assembly Complex alongside Its stablemate, the Jeep Grand Cherokee.
“In our 2023 contract, we won major gains, including a commitment to reopen an idled assembly plant in Belvidere, Illinois, and to build the Dodge Durango in Detroit. We also won the right to strike over those commitments if we have to,” Fain said in a Sept. 16 statement. “Now, Stellantis wants to go back on the deal. As a united UAW, we intend to enforce our contract, and to make Stellantis keep the promise.”
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The new complaints follow proposed grievances from UAW chapters against Stellantis that accused the automaker of falling behind on its commitment to build brand-new, multibillion-dollar facilities at the idled Belvedere Assembly Plant; a move that will bring in an additional 5,000 jobs.
“The Company has informed the Union that it will not launch the Belvidere Consolidated Mopar Mega Hub in 2024, it will not begin stamping operations for the Belvidere Mega Hub in 2025, and it will not begin production of a midsize truck in Belvidere in 2027," The UAW wrote in its proposed grievance.
"The Company’s failure to plan for, fund, and launch these programs constitute a violation of the U.S. Investment letter in the P&M and OC&E Collective Bargaining Agreements."
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According to a document highlighting the 2023 UAW agreement with Stellantis, the automaker agreed to spend $1.5 billion to improve the Detroit Assembly Complex as part of a $19 billion improvement timeline across its various manufacturing plants. Critically, it also stated that the current-generation Dodge Durango was to continue through 2025, followed by gas and electric versions of the next iteration of the Durango in 2026.
In a statement, Stellantis states that it hasn't received any notices for any grievances and emphasizes that they haven't fallen behind on its historic 2023 collective bargaining agreement with the UAW.
"Like all of our competitors, Stellantis is attempting to carefully manage how and when we bring new vehicles to market with a focus on enhancing our competitiveness and ensuring our future sustainability and growth," the automaker said in a statement to Automotive News. "We will communicate our plans to the UAW at the appropriate time."
Trouble at Stellantis
Shortly after the earnings call, the parent company of Dodge, Chrysler, Jeep, and Ram started trimming jobs in key parts of its operations, offering voluntary buyout packages to white-collar workers and massive layoffs that have the attention of JD Vance.
Being a multinational automaker, Stellantis's troubles are not limited to situations that are occurring in the United States.
According to a recent report by Reuters, CEO Carlos Tavares said that the automaker is working hard to take steps that would help it avoid closing one of its car plants. Currently, other European automakers like Volkswagen are feeling the heat amidst the rise of cars from brands like BYD, and the increased cost of labor in Europe.
"We are working very very hard to avoid that situation and the future will say if we are going to be able to avoid any trouble or not, too soon to say today," Tavares said.
Stellantis NV, which trades on the New York Stock Exchange as STLA, is down 0.33% from the opening bell, trading at $15.14 at the time of writing.
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