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UAW Urges Stellantis Workers to Approve Strike Amid High Inventory and Job Concerns

Shawn Fain Rallies UAW Members for Strike Vote Amid Stellantis Disputes...

The United Auto Workers (UAW) leadership has called on its members working at Stellantis, the parent company of Chrysler, Dodge, Fiat, Jeep®, and Ram, to prepare for a potential strike authorization vote. In a letter issued Friday, UAW President Shawn Fain and Kevin Gotinsky, Director of the Union’s Stellantis Department, outlined their grievances, accusing the automaker of not fulfilling the commitments made during last year’s contract negotiations.

The union claims Stellantis has failed to live up to its promises related to product and investment commitments, essential to maintaining jobs and production in U.S. plants. Stellantis has pushed back against the allegations, attributing the challenges to market conditions and the need to balance affordability.

Key Disputes: Plant Delays and Job Cuts – 

Production at the Jefferson North Assembly Plant in Detroit. (Stellantis).

Stellantis’ decision to delay the reopening of its Belvidere Assembly Plant in Illinois is a significant concern. The automaker also intends to cut a shift at its Warren Truck Assembly Plant (WTAP) this year, further heightening job security fears. Stellantis has remained unclear about the future of Dodge Durango production, not confirming whether it plans to move production from its Jefferson North Assembly Plant (JNAP), which is part of the Detroit Assembly Complex, to the Windsor Assembly Plant in Windsor, Ontario.

This week, Stellantis announced indefinite layoffs of union-represented workers across its U.S. operations, citing market challenges and the need to address vehicle affordability. While supplemental workers in several plants have been terminated, the company has not provided detailed information on which layoffs will impact plants or jobs.

UAW Rallies for Action –

UAW Letter To Stellantis UAW Employees. (UAW).

Earlier this week, around 200 local UAW leaders met to discuss what they called “serious violations” of the contract and patterns of behavior by Stellantis that the union believes are illegal. Fain and Gotinsky’s letter to Stellantis members urged solidarity and readiness: “The evidence is clear that CEO Carlos Tavares is steering Stellantis on a crash course that will cause our members tremendous harm. Given all that we heard, we resolved to meet this make-or-break moment without fear and to fight for the rights of our members.”

The union is pushing its members to authorize a strike, although the exact timing of the vote remains unclear. It’s important to note that even if the vote passes, it does not automatically mean a strike will occur. However, it would empower the UAW with stronger leverage in its negotiations with Stellantis.

Fain also stated that various UAW locals have filed grievances and charges with the National Labor Relations Board over the company’s conduct. While Stellantis argues the union cannot strike over investment-related disputes, the UAW disputes that interpretation, emphasizing their resolve to hold the automaker accountable.

Stellantis Responds – 

Stellantis Kokomo Casting Plant in Kokomo, Indiana. (Stellantis).

Stellantis has strongly refuted the union’s accusations. In a statement released earlier in the week, the company pointed to investments it has made, particularly in Kokomo, Indiana, which they say have not been properly recognized by the union. The automaker also stressed that “the investments and timelines are not absolute guarantees, as Fain has wrongly and repeatedly characterized, but contingent upon numerous factors, including market conditions.”

Stellantis is also facing challenges outside the labor dispute. Declining U.S. sales, shrinking market share, and dissatisfaction among its dealers, who have questioned the company’s strategy, have added pressure on the automaker. As rumors swirl about CEO Carlos Tavares’ future with the company, Stellantis has indicated that its search for a successor—amid his contract expiring in 2026—is a normal part of long-term planning.

High Inventory Levels: A Complicated Moment for Strikes – 

 

Ironically, Stellantis’ current high vehicle inventory levels could actually blunt the immediate impact of a potential UAW strike. With many dealerships already stocked, the automaker could have a cushion to weather a work stoppage without the usual hit to sales. This situation could, however, shift the focus of the strike’s impact toward suppliers, who might see disruptions ripple through their businesses due to halted production at Stellantis’ U.S. plants. The UAW itself could also face significant costs if a strike drags on, as the union would need to fund its strike pay to members while negotiations continue.

Further complicating matters, some industry analysts have suggested that an extended strike could push Stellantis to consider moving more jobs outside the U.S., including to lower-cost regions like Mexico or Canada, as part of a broader restructuring. This could inadvertently intensify the very job security issues that the UAW is trying to prevent, placing additional strain on UAW members in the long term.

UAW Criticism of Fain – 

UAW President Shawn Fain and President Biden in front of workers in September 2023. (UAW).

While the UAW leadership has shown strong resolve, some rank-and-file members have voiced frustration with Fain. Critics argue that he has not done enough to safeguard jobs in the face of Stellantis’ restructuring moves. Some detractors have accused him of being overly focused on political endorsements, such as his support of Vice President Kamala Harris, rather than dedicating his full attention to saving union jobs.

The union leadership remains undeterred; however, it pushes forward with its calls for unity and prepares members for a vote to authorize a strike. As the situation unfolds, the UAW’s actions and Stellantis’ responses will determine the future of thousands of workers and the automaker’s U.S. operations.

Fain’s letter ended with a clear message of solidarity: “We will keep you updated as we move forward, holding Stellantis to account.”

The Path Ahead – 

UAW members on the picket line. (UAW).

The potential strike authorization is critical for both Stellantis and the UAW. With high inventory levels potentially cushioning the automaker, the strike could have unintended consequences, particularly for suppliers and the union itself. Both sides will need to navigate this complex landscape as negotiations continue carefully and decisions are made that will affect the future of jobs and production in the U.S. auto industry.

Robert S. Miller

Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only the Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.

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UAW Criticizes Stellantis Layoffs at Sterling Heights Plant​

Stellantis Cites Market Conditions For Job Cuts...​

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Stellantis has announced plans to lay off 191 workers at its Sterling Heights Assembly Plant (SHAP) in Metro Detroit, a move that has sparked sharp criticism from the United Auto Workers (UAW). The layoffs, set to take effect on October 1, 2024, will primarily impact seasonal supplemental employees who were hired to cover for increased summer vacation periods. Stellantis pointed to challenging market conditions and the need for operational adjustments as the primary reasons behind the job cuts.

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???????? Who did the Union just endorse for President? This is BS on Fain's part he knows DAMN well that a EV takes 30% less labor to produce, and that doesn't include how much of that is off loaded to Asia.

Not to mention even in the CARB states there is a disconnect between the regulatory and consumer.

I am not trying to insert politics in it but the difference between one side of the isle is clear on subject. ONE very much believes that there is a single solution to Climate change, and it is the forced adoption of EV vehicles.

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???????? Who did the Union just endorse for President? This is BS on Fain's part he knows DAMN well that a EV takes 30% less labor to produce, and that doesn't include how much of that is off loaded to Asia.

Not to mention even in the CARB states there is a disconnect between the regulatory and consumer.

I am not trying to insert politics in it but the difference between one side of the isle is clear on subject. ONE very much believes that there is a single solution to Climate change, and it is the forced adoption of EV vehicles.

The union didn't endorse Kamala, Shawn Fain is. I know a lot of people who are UAW members who are voting the other way.

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The union didn't endorse Kamala, Shawn Fain is. I know a lot of people who are UAW members who are voting the other way.

Yes, in detail you are correct. But the same organization head is complaining about something HE endorsed.

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