A new UAW strike could be launched against Stellantis over a plant delay jeopardizing plans for a new Ram midsize truck.
UAW Strike possible
The UAW stated Stellantis has changed its mind on the Belvidere Assembly Plant which was supposed to reopen to build a new Ram midsize truck and an electric battery assembly plant. This plant reopening was a big win for the UAW in last Fall’s strike negotiation.
They blame the move on Stellantis CEO Carlos Tavares.
“If any auto worker did as a piss poor job as Stellantis CEO Tavares,” UAW President Shawn Fain said in a Facebook video. “They’d be fired.”
UAW President Shawn Fain also brought attention to Stellantis’ plan to delay the plant opening while on stage at the 2024 Democratic National Convention.
The UAW says they won the right to strike over these decisions in the contract negotiations that ended last year’s strike.
Stellantis responds to UAW claims
In a statement, Stellantis says it is changing market conditions causing the company to rethink its plans.
“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.”
The dispute over the right to strike could see both sides end up in court.
The bottom line
The reopening of Belvidere Assembly Plant the launch of a new Ram midsize truck seemed like a win, win for the company, the local community and Ram truck fans eager for a midsize truck rival. However, those plans now seem to be in jeopardy while the fight between the UAW and Stellantis plays out in public.
