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KEY TAKEAWAYS
- Chrysler and Jeep parent Stellantis is potentially facing a fresh strike as United Auto Workers (UAW) President Shawn Fain said the union plans to hold a vote authorizing a walkout.
- Fain alleged in a live video address that the automaker abandoned contract commitments it made during a labor deal struck last year.
- Fain said Stellantis had violated terms of its deal by delaying reopening an idled plant in Belvedere, Ill., and also with its “confirmation” of plans to move the Dodge Durango assembly out of the U.S.
- Stellantis said it hadn’t confirmed a move of the Dodge Durango assembly and that it had plenty of time within the contract terms to meet the investment targets.
Chrysler and Jeep parent Stellantis (STLA) is potentially facing a fresh strike after United Auto Workers (UAW) President Shawn Fain said the union plans to hold a vote authorizing a walkout after the automaker allegedly abandoned contract commitments it made during a labor deal struck last year.
The Big Three automaker was hit by a wave of strikes last year before reaching deals with the UAW.
Fain Says Stellantis Violated Contract Terms
Fain said the company had violated terms of its deal by delaying reopening an idled plant in Belvedere, Ill., and also with its “confirmation” of plans to move the Dodge Durango assembly plant to Canada, among other things.
“We will … be holding strike-authorization votes at one or more Stellantis locals, and we will stand united to enforce our contract and save American jobs,” Fain said in a video address.
Stellantis denied in an emailed response to Investopedia that it had confirmed a decision to move production of the Durango out of the U.S. and said it still had time to fulfill its contract terms.
“The commitments we made during 2023 negotiations span the life of the 4-year, 7 ½-month agreement, so it is not surprising that they haven’t been fully realized in the first year,” a Stellantis spokersperson said.
Stellantis shares rose were little changed Wednesday morning. They have lost more than a third of their value this year.
UPDATE—This story has been updated with a comment from Stellantis.