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Key Takeaways
- Car manufacturer Stellantis is delaying plans to reopen an Illinois assembly plant, which the United Auto Workers (UAW) union says is breaking its labor contract.
- The automaker claims the UAW can’t legally strike over the decision.
- UAW locals representing tens of thousands of workers in several states are preparing to file grievances.
Stellantis (STLA) said Tuesday that its plan to delay the reopening of an assembly plant in Belvidere, Illinois, is not in violation of its contract with the United Auto Workers (UAW) union.
On Monday, the union said locals representing tens of thousands of workers in several states were preparing to file grievances over the decision, which could culminate in a national strike.
In November 2023, the union said its new contract with the Chrysler parent included a promise to reopen the Belvidere plant that it closed in February of that year and to build a $3.2 billion battery plant there.
Stellantis insists its change of plans is necessary to “preserve U.S. manufacturing jobs” and doesn’t violate the union contract.
Contract ‘Allows Company To Modify Employment Levels’
“[I]t is critical that the business case for all investments is aligned with market conditions and our ability to accommodate a wide range of consumer demands,” Stellantis said Tuesday.
“[T]he UAW agreed to language that expressly allows the company to modify product investments and employment levels. Therefore, the union cannot legally strike over a violation of this letter at this time,” the company added.
The UAW didn’t immediately respond to a request for comment.