UAW Union Tightening Up About A Potential Strike

The United Auto Workers (UAW) union, representing tens of thousands of workers under the national UAW Stellantis agreement, is gearing up to file grievances against Stellantis due to its alleged failure to uphold its investment commitments and honor the union contract. If necessary, these grievances could potentially lead to a national strike.

UAW President Shawn Fain clarified that the union is fully prepared to enforce the contract. “This company made a commitment to autoworkers at Stellantis in our union contract, and we intend to enforce that contract to the full extent,” Fain stated. “On behalf of autoworkers everywhere, we’re standing up against a company that wants to go back on its commitments and drive a race to the bottom at the expense of the American worker.”

The 2023 UAW Stellantis agreement marked a significant victory for the union, granting them the right to strike over product and investment commitments. Additionally, a historic commitment was made to reopen the Belvidere Assembly Plant in Illinois, which Stellantis had idled indefinitely earlier in the year. However, since the agreement’s ratification, Stellantis has reportedly reneged on its commitments, particularly regarding the Belvidere plant, and has been unreceptive to union discussions aimed at keeping the plans on track.

This situation affects Belvidere and threatens the company’s other investment commitments. Failure to honor these commitments could have national implications for Stellantis workers, particularly concerning job security and transfer opportunities in the event of layoffs.

Under the UAW Stellantis contract, once an issue has gone through the grievance procedure, the union has the authority to strike over the grievance. Many UAW Stellantis members are prepared to take such action if necessary. Some of the most prominent UAW locals potentially filing these grievances include UAW Local 12 (Toledo Assembly, Toledo, OH), Local 140 (Warren Truck, Warren, MI), Local 1700 (Sterling Heights Assembly, Sterling Heights, MI), Local 7 (Detroit Assembly Complex – Jefferson, Detroit, MI), Local 51 (Detroit Assembly Complex – Mack, Detroit, MI), Local 685 (Kokomo Transmission, Kokomo, IN), and Local 1166 (Kokomo Casting, Kokomo, IN). Any local covered under the national UAW Stellantis agreement may file grievances at any time.

The language of the grievance filed by the union highlights Stellantis’s failure to launch several key projects in Belvidere, including the Belvidere Consolidated Mopar Mega Hub, Belvidere Stamping operations, and midsize truck production. The union’s demand is clear: Stellantis must rescind its decision to delay these projects and immediately fund and plan for their timely launch.

The UAW has already taken steps to rally support, with recent rallies at UAW Local 1268 in Belvidere on August 22nd and at the Sterling Heights Assembly Plant (SHAP) on August 23rd. These actions indicate the seriousness with which the union approaches the situation and their readiness to escalate further if their demands remain unmet.

However, while a national strike might seem like a significant threat, it may not have the desired impact. Stellantis currently has a substantial amount of leftover inventory across its dealer network. This stockpile could provide the company with a buffer, allowing it to weather a potential strike without immediately disrupting its sales operations.