UAW President Shawn Fain used a prime-time speech during the opening of the Democratic National Convention to warn of a possible strike against Stellantis. Speaking out against what he described as “corporate greed,” Fain accused the Euro-American automaker of reneging on investments promised as part of a settlement union and management reached during contract talks last autumn.
The Belvidere Assembly Plant shut in early 2023 when production of the slow-selling Jeep Cherokee ended.
A strike is a growing possibility at Stellantis as leaders of the United Auto Workers Union accuse the automaker of failing to honor the contract the two sides reached last autumn.
In particular, the UAW is criticizing the Euro-American automaker for delays in reopening a plant in Belvidere, Illinois that has been idled since early 2023. The company agreed to invest $1.5 billion at the plant to convert it for production of a new midsize pickup.
Union leaders at several other Stellantis factories have begun filing grievances against Stellantis which, a UAW statement said, could “pave the way for a national strike” against the automaker as early as next month.
Fain takes dispute to the airwaves
Wearing a T-shirt proclaiming Donald Trump a “scab,” Fain raised a threat of a strike against Stellantis during a speech at the Democratic National Convention.
The dispute drew plenty of attention Monday night during the opening of the Democratic National Convention. During a speech outlining the union’s support for presidential nominee, UAW president Shawn Fain turned to the dispute over the Belvidere plant.
“Corporate greed is alive and well in the auto industry,” Fain said in his speech. “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 dispute threatens to renew the ill will between the UAW and Stellantis that both sides had hoped to ease with the signing of a new 4-year contract negotiated last October following a lengthy strike.
The heart of the dispute
It took about six weeks for the UAW and Stellantis to reach a contract settlement last autumn.
Relations between Stellantis and the UAW remained sour, despite the union’s winning what Fain then described as a “historic” settlement protecting jobs and delivering significant wage hikes. The union chief, prone to fiery rhetoric, last Friday accused Stellantis of “price gouging,” and failing to uphold the terms of the contract.
Things haven’t been helped by recent layoffs at several of the automaker’s plants due to slowing sales. For his part, Stellantis CEO acknowledged the company misread the market and said part of the blame was due to his own “arrogance.”
But the strike threat has been triggered by the union concern that Stellantis might delay or even try to back out of reopening the Belvidere plant. Located about 70 miles from Chicago, the Belvidere Assembly Plant was idle in early 2023 when the automaker abandoned production of its slow-selling Jeep Cherokee. About 1,350 workers were impacted.
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Belvidere plans
The UAW made the future of the Belvidere plant a critical part of last year’s contract talks – the negotiations dragging on as Fain ordered an unusual “stand-up” strike targeting all of the Detroit Big Three automakers.
As part of the contract Stellantis reached at the end of October it agreed to take several steps at the Illinois facility:
- The most important move would involve an investment of around $1.5 billion to retool the plant to build a new midsize pickup for the Ram brand. It was expected to reopen in 2027;
- Stellantis also agreed to create a $100 million parts hub at the site to consolidate three smaller Midwest facilities by 2025;
- A stamping operation would be added to handle replacement parts; and
- Stellantis also said it would invest about $3.2 billion in a new battery plant to be part of a joint venture based in Belvidere. No target date was set.
Stellantis pulls back
Despite receiving state assistance and a federal commitment for $335 million, the UAW accuses Stellantis of dragging its feet. The union claims the stamping plant and parts hub are being delayed, and that the truck won’t go into production by 2027.
Part of the concern is that Stellantis could wind up delaying any updates to Belvidere until the current union contract expires in April 2028. That might mean the topic would then have to be renegotiated.
And UAW leaders fear other company commitments could be at risk, noting in a statement on the union’s website that, “If the company won’t keep their word in Belvidere, why would they keep their word about any of the $18 billion in investment commitments they made?”
The automaker has not yet responded to a request for comment. It will be added if it follows through.
In the meantime, the grievance process is expected to take at least a month to resolve but if the two sides can’t come to a satisfactory resolution the UAW could then order workers to head for the picket line at Stellantis plants across the country.
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