Stellantis product plans are in flux, leading to an increasingly bitter dispute with the United Auto Workers. The union is demanding the company honor commitments made during contract negotiations last year. The dispute could threaten in launch of the Ramcharger planned for early next year.
UAW President Shawn Fain is ready to implement hard-line tactics in the union’s dispute with Stellantis.
The UAW is preparing to hold strike votes at several plants as the dispute over the company’s future investment continues to escalate.
UAW President Shawn Fain said this week the automaker is trying to get around the commitment it made during the stand-up strike to re-open a closed factory in Belvidere, Illinois and spend billions to upgrade and re-tool other plants.
UAW pushes demands
Fain did not spell out which plants could be targeted for a work stoppage, but the union has several potential targets, including the Sterling Heights Assembly Plant where Stellantis plans to build the Ramcharger.
“Stellantis has declared war on the American working class,” Fain said. “The company has decided to respond to our support by abandoning their workers, their dealers, their consumers and the American taxpayer.
“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. 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.”
The Belvidere Assembly Plant was closed earlier this year.
Union files grievances
The UAW is pushing 28 grievances, claiming the company has violated the commitment letter, and will hold strike authorization votes at some locals as its steps up its efforts to pressure the company on the commitments it made last year, added Fain, who dismisses the idea the company cannot afford to honor the agreement.
The union also filed Unfair Labor Practice charges against the automaker. Among the charges included in the union’s complaint is an assertion the automaker is preparing to move production of the Dodge Durango from Detroit to Canada.
“We aren’t the problem,” said Fain on Facebook Live. “The market is not the problem,” added Fain, who said the problem is Stellantis CEO Carlos Tavares, who has alienated the company’s employees, dealers and consumers.
Stellantis disputes union’s facts
Stellantis officials contend the company is not reneging on its investment commitments.
Stellantis, in a statement issued after Fain’s Facebook live appearance, said, “Like all our competitors, Stellantis is attempting to carefully manage how and when we launch new products in an electric vehicle market that is still highly volatile. Our focus remains on offering consumers affordable multi-energy vehicles while ensuring our future sustainability, which are necessary to protect U.S. manufacturing jobs.
“The commitments we made during 2023 negotiations span the life of the 4-year, 7.5-month agreement, so it is not surprising that they haven’t been fully realized in the first year. And 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.
“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,” the company statement adds.
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Company feels pressure, ramps up investments
Stellantis is feeling the pressure from the union as it announces plans to invest more than $406 million in three Michigan plant “to execute multi-energy strategy,” which calls for the production of vehicles with battery electric, hybrid and internal combustion powertrains.
The Ram 1500 Ramcharger could be impacted by the union’s plans.
According to Stellantis, the additional $235 million investment will accelerate the retooling of Sterling Heights Assembly Plant and clear the way for the upcoming launches of Ram 1500 in battery-electric and range-extended electric variants alongside internal combustion engine model.
As part of the program, Warren Truck Assembly Plant, the target of the demonstration, will receive an investment of $97.6 million for future electrified Jeep Wagoneer models to internal combustion engine production portfolio.
Other investments
Additionally, Stellantis’ Dundee Engine Plant will get a $73 million investment to support production battery tray and news machining to complement gas engine assembly.
Ram’s full-size pickups should be easy to find, as there is nearly a year’s supply available.
All the investments are part of the company’s Dare Forward 2030 strategic plan, Stellantis says.
“Sterling Heights Assembly has performed an incredible transformation in record time, and I want to thank our colleagues for this great achievement,” Tavares said, who has been accused of ignoring or minimizing the contribution of UAW members to the company’s success.
Tavares has also made several statements in the past about the need to improve quality and reduce costs of the company’s North American operations.
“Gearing up to build our first-ever Ram electric truck and the range-extended version in Michigan is a meaningful moment of pride for our teams. With these investments supporting both Jeep and Ram, we’re adding innovations to our Michigan manufacturing footprint to support a multi-energy approach that is laser-focused on customer demand.”
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