UAW Threatens Strike Over Stellantis’ Belvidere Plant Plans
Union Warns Stellantis Against Backtracking on Belvidere Reopening...
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The United Auto Workers (UAW) union is threatening to strike against Stellantis if the automaker fails to follow through on its commitments to reopen the Belvidere Assembly Plant in Illinois. This comes after the UAW and Stellantis reached an agreement in October 2023, which included a plan to revive the idled plant. The UAW is now concerned that Stellantis might backtrack on these commitments, putting jobs and the local economy at risk.
The UAW-Stellantis Agreement –
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In February 2023, Stellantis idled the Belvidere Assembly Plant, leaving 1,200 workers without jobs. However, in their 2023 labor agreement, Stellantis pledged to reopen the plant by 2027. The plan involves converting the facility to produce a new midsize electric pickup truck, which many believe could be a successor to the popular Dodge Dakota, possibly based on Stellantis’ STLA Large architecture. The agreement also includes the creation of a Mopar parts distribution hub in Belvidere by 2024 and a stamping operation by 2025, both intended to support the new pickup’s production.
These commitments were seen as a victory for the UAW and the local community, with UAW Vice President Rich Boyer stating, “From the strength of our strike, we are bringing back those jobs and more.”
Federal Support for EV Transition –
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The Biden administration has actively supported the transition to electric vehicles (EVs) across the United States. In July 2024, the Department of Energy (DOE) announced nearly $1.1 billion in grants to help automakers, including Stellantis, convert existing plants to EV production. Stellantis is set to receive $584.8 million, with $334.8 million earmarked specifically for the Belvidere Assembly Plant. This funding is intended to modernize the plant for EV production, which is expected to create new jobs and secure the facility’s future.
UAW’s Concerns and Strike Threats –
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Despite these plans and federal support, the UAW has raised concerns that Stellantis may not fulfill its commitments. The union has reported that Stellantis has been “unreceptive” during talks about the Belvidere plant, leading to fears that the automaker might delay or cancel its plans to reopen the facility. In response, at least seven UAW locals are prepared to file grievances against Stellantis, with the possibility of a strike looming if the company does not adhere to the agreed timeline.
The UAW’s concerns were amplified after the release of a video on August 16, 2024, in which the union accused Stellantis CEO Carlos Tavares of mismanaging the company. UAW President Shawn Fain criticized Tavares, stating, “If any autoworker did as piss-poor of a job as Stellantis CEO Carlos Tavares, they’d be fired.” The union claims that Stellantis is more focused on cost-cutting measures than investing in its U.S. workforce, risking the future of American jobs.
The Potential Impact of a Strike –
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Labor expert Art Wheaton from Cornell University noted that Stellantis might withstand a short strike, particularly as it could help the company reduce inventory on dealer lots. However, Wheaton also warned that a prolonged strike could have severe consequences for the company and its workers, potentially jeopardizing Stellantis’ transition to EV production.
Source: Automotive News
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