In a statement issued on Sept. 16, the United Auto Workers union (UAW) announced that it had filed unfair labor practice charges against Detroit Big Three automaker Stellantis (STLA) with the National Labor Relations Board (NLRB).
The charges stem from what it says is “Stellantis’ illegal refusal to provide information about the company’s plans regarding product commitments it made in the UAW’s 2023 collective bargaining agreement,” noting 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.
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“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,” UAW president Shawn Fain said.
“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.”
In a shocking move, Fain doubled down on the pressure with a new announcement.
Shawn Fain, president of the United Automobile Workers, speaks on the first night of the Democratic National Convention at the United Center in Chicago, Ill., on Monday, August 19, 2024.
UAW takes a new course of action to force Stellantis’ hand
In a live-streamed speech on the UAW’s YouTube channel on the evening of Sept. 17, UAW President Shawn Fain said that the union is prepared to “strike action” against Stellantis because it sees the automaker failing to uphold its end of the deal made last year.
In his remarks, Fain said that UAW locals representing Stellantis workers will hold strike authorization votes and have those workers go on strike if the company does not meet union demands.
“Tonight, I am announcing in the coming days, we will be convening our Stellantis counsel in Detroit. We will also be holding strike authorization votes at one or more Stellantis locales. And we will stand united to enforce our contract and save American jobs,” Fain said.
The new course of action stems from the previous issues it had with Stellantis over the status of the reopening of the Belvidere assembly plant in Illinois and keeping production of the Dodge Durango in Detroit.
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Fain argues that Stellantis is following an aggressive plan of attack against the workforce and local communities where these plants are located.
“Over the past 25 years, Stellantis has sold or closed or idled 18 manufacturing facilities, killing tens of thousands of jobs and decimating communities and ripping families apart,” Fain said. “That happened despite record profits over the past decade.”
“Plant closures are bombs dropped by corporate America on the working class. There comes a time when we have to stand up. For our UAW family at Stellantis, that time is now.”
The mention of a strike vote comes at an unusual time for the UAW. The UAW is currently a year into its landmark contract with the Big Three automakers, but unlike in the past, the union won the right to strike back in November if it detected any threats of plant closures or any violations of job protections.
“We are 100% within our rights and within our power to take strike action if necessary,” Fain said. “We are prepared to take strike action to make Stellantis keep the promise.”
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Stellantis Responds
In a statement to TheStreet, a Stellantis spokesperson denied that it confirmed a decision to move production of the Dodge Durango to Canada or that it is violating the UAW agreement made in November 2023.
The automaker also argued that there is still plenty of time to meet the agreed-upon investment targets and vehicle production commitments, noting that “it is not surprising” that none of the targets haven’t been fully realized in the first year of the contract.
“To be clear, Shawn Fain’s claim that the company has confirmed plans for the Dodge Durango is simply not true. The company has confirmed no such thing,” Stellantis told TheStreet.
“However, Shawn Fain continues to allege that the company has violated the contract but, to date, has provided no data or information to back up his claims. Instead, he continues to willfully damage the reputation of the company with his public attacks, which is helpful to no one, including his members.”
Additionally, the automaker said that any issues the UAW has with them shouldn’t be brought up publicly and pleaded against a strike.
“We would all be better served if these issues were addressed across the table with productive, respectful, and forward-looking dialogue. A strike does not benefit anyone – our customers, our dealers, the community, and, most importantly, our employees.”
Stellantis NV, which trades on the New York Stock Exchange as STLA, is up 0.79% from the opening bell, trading at $15.22 per share at the time of writing.
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