By Nora Eckert and Abhirup Roy
DETROIT (Reuters) – The United Auto Workers union plans to hold strike votes at one or more of its local chapters in Stellantis (NYSE:) in the coming days, union president Shawn Fain said on Tuesday, which could lead to significant disruptions for the Jeep -maker.
Fain has taken Stellantis CEO Carlos Tavares to task in recent months for failing to meet product and investment commitments the automaker agreed to after the union staged a six-week strike last fall.
Stellantis said its focus remained on offering a selection of affordable conventional and electric vehicles to consumers and ensuring the sustainability of the company and its workforce.
“The commitments we made during the 2023 negotiations cover the term of the agreement of four years and seven and a half months, so it is not surprising that they have not been fully realized in the first year,” the company said in a statement. .
Local chapters of Stellantis have filed complaints related to the company’s alleged plan to move production of the Dodge Durango out of the United States, union leaders said this week. Stellantis said they have not confirmed any plans to shift production of the vehicle.
The union has also drawn attention to the company’s delays in a planned multibillion-dollar investment in a new battery plant and manufacturing plant in Belvidere, Illinois.
“We are 100% within our rights and within our power to take strike action if necessary,” Fain said in a video address on Tuesday evening.
Automotive strikes typically occur every four years during national contract negotiations. Major strikes outside that window are rare.
“The stakes are very high. It is a crucial moment for the union to ensure that the gains it believes it has made are respected,” said Harley Shaiken, a labor professor at the University of California, Berkeley.
Fain said 28 Stellantis residents had filed complaints involving tens of thousands of UAW members. A UAW official said about 98% of Stellantis membership is covered by these grievances, making the potential strike as powerful as a nationwide strike.
UNION MAKES STRATEGIC MOVE
The union’s targeted local approach is more strategic than calling a nationwide strike, which Stellantis likely would have argued in court violated their contract, Shaiken said.
The union also filed unfair labor practice claims with the National Labor Relations Board against Stellantis on Monday, saying the company refused to provide information about its future product plans.
Securing jobs at the Belvidere plant was one of the union’s most heralded victories following the nationwide strike against Stellantis, Ford Motor (NYSE:) and General Motors (NYSE:) late last year, and a symbol of the power of the union to protect union jobs. as the industry shifts to electric vehicle production.
The UAW also won a record 25% across-the-board wage increase, the return of cost-of-living adjustments and the right to strike over product commitments and investments, which Fain said now allows them to stage a strike against Stellantis.
At the same time, Stellantis has faced a backlash from its dealers and shareholders in recent months due to rising inventories and lagging sales.
“It’s not every day that we, the auto workers, are on the same side as the dealers, on the same side as the suppliers and on the same side as the shareholders. But today is that day and we are prepared to take strike action to ensure Stellantis keeps its promise,” Fain said.
In line with union processes, Stellantis has several options to respond to the grievances of UAW local chapters. If the issue is not resolved, the union will have 60 days to vote on whether to strike.
Once a majority of workers at a local union approve a strike, the UAW meets with the company seven times and resolves the issue or goes on strike.
