UAW threatens to strike over Stellantis' alleged delay in reopening of Belvidere plant
(CBS DETROIT) - The United Auto Workers union says it's preparing to file grievances and potentially strike after claiming Stellantis hasn't kept contract commitments regarding reopening the Belvidere Assembly Plant in Illinois.
The Belvidere plant was idled in 2023, but in last year's contract, the automaker committed to reopening the facility, which would include the production of midsized trucks, according to a release from the UAW.
"This company made a commitment to autoworkers at Stellantis in our union contract, and we intend to enforce that contract to the full extent," UAW President Shawn Fain said in the release. "On behalf of autoworkers everywhere, we're standing up against a company that wants to go back on its commitments and drive a race to the bottom at the expense of the American worker."
The union says Stellantis has been "unreceptive" to discussions about staying on track to open Belvidere and that this violation of the contract impacts other commitments the automaker made under the contract.
"Aside from the impact on Belvidere, this glaring violation of the contract imperils all of the other investment commitments the company has made, and also impacts Stellantis members nationally, as they will not have those jobs for transfer opportunities in the event of layoffs," according to the release.
Under the contract, the union can authorize a strike once an issue has gone through the grievance process.
The language of the grievance over the Belvidere plant issue is as follows:
"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 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. During 2023 National Negotiations the parties agreed to the investment plan for Belvidere to address job security concerns impacting bargaining unit members throughout the entire system. The Company's failure to honor its commitments in the U.S. Investment letter is a serious concern to all bargaining unit members.
"Demand: The Union demands that the Company rescind its decision to push back the above-referenced launches and immediately plan for and fund the Belvidere investments in order to comply with the agreed upon timeline for launching the Belvidere Mega Hub (2024), the Belvidere Stamping operation (2025) and Belvidere midsize truck production (2027)."
The union's goal is not to strike, but members "must be ready to do what it takes," according to its website dedicated to the Belvidere issue.
Stellantis responded and said while the reopening of the Belvidere plant has been delayed, the automaker stands by its commitment.
The automaker released the following statement regarding the issue:
"To ensure the Company's future competitiveness and sustainability, which are necessary to preserve U.S. manufacturing jobs, it is critical that the business case for all investments is aligned with market conditions and our ability to accommodate a wide range of consumer demands. Therefore, the Company confirms it has notified the UAW that plans for Belvidere will be delayed, but firmly stands by its commitment. As always, the Company is committed to engaging with the Union on a productive, respectful and forward-looking dialogue.
"The Company has not violated the commitments made in the Investment Letter included in the 2023 UAW Collective Bargaining Agreement and strongly objects to the Union's accusations. In fact, the UAW agreed to language that expressly allows the Company to modify product investments and employment levels. Therefore, the Union cannot legally strike over a violation of this letter at this time."