UAW Threatens Strike, Accusing Stellantis of Contract Breach

The United Auto Workers made clear on Monday that its members are prepared to file formal grievances regarding automaker Stellantis' failure to follow through on its commitments in the union's historic contract last year—and warned that a strike by tens of thousands of autoworkers is an option if their demands are not met.

Stellantis, one of the Big Three automakers, informed the UAW that contrary to promises made in the union's collective bargaining agreement last year, it does not intend to reopen an assembly plant in Belvidere, Illinois by the end of this year.

"It will not begin stamping operations for the Belvidere Mega Hub in 2025 and it will not begin production of a midsize truck in Belvidere in 2027," reads the grievance that several UAW locals are preparing to file.

The union said in a statement that Stellantis "has been unreceptive in talks with the union to stay on track."

The failure to reopen the idled manufacturing hub could impact UAW members who work for Stellantis nationally, said the UAW, "as they will not have those jobs for transfer opportunities in the event of layoffs."

"In our 2023 UAW contract with Stellantis, we won historic gains, from life-changing wage increases to the reopening of Belvidere Assembly, and billions more in investment in American autoworkers," reads the union's website page announcing the grievance. "We also won the right to strike over product and investment commitments. A year later, the company wants to go back on their commitments to Stellantis autoworkers. Our answer is simple: HELL NO. Thousands of UAW members sacrificed on the picket line to win this contract, and we intend to enforce it, even if that means going back on strike."

Locals in Toledo, Ohio; Kokomo, Indiana; and Detroit are among those that are prepared to file the grievances; the locals represent tens of thousands of workers who will be able to authorize a strike after the grievance is filed under the Stellantis contract.

"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," said Shawn Fain, president of UAW.

The union issued a clear demand to Stellantis, calling on officials to immediately plan for and fund the launch of the Belvidere Mega Hub and stick to the timeline that was agreed upon for the Belvidere Stamping operation in 2025 and midsize truck production in 2027.

The UAW announced the possible upcoming strike days after releasing a video in which Fain accused Stellantis of price gouging and called on Stellantis CEO Carlos Tavares to resign.

Tavares made $39.5 million last year—a 56% pay increase over 2022—despite drops in sales at the company and recent layoffs of hundreds of engineers and tech employees.

Stellantis, said Fain, has blamed autoworkers for its inability to move forward with the plan to reopen Belvidere Assembly.

"The problem isn't the little guys at the bottom," said Fain. "It's the big man at the top. If any autoworker did as piss-poor of a job as Stellantis CEO Carlos Tavares, they'd be fired. The truth is, Stellantis doesn't want to invest in America."

"America has invested in Stellantis. Workers have invested in Stellantis. And consumers have invested in Stellantis. And they deserve better. It's time to put an end to corporate greed at Stellantis."