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"We believe that if Stellantis can afford to spend over $8 billion this year on stock buybacks and dividends, it can live up to the contractual commitments it made to the UAW."
In what the United Auto Workers hailed as "a powerful show of solidarity," scores of U.S. lawmakers on Thursday sent letters to "Big Three" automaker Stellantis and its CEO, Carlos Tavares, urging them to honor their contractual obligation to their employees, protect American jobs, and stop making excuses amid record profits and multibillion-dollar stock buybacks and dividends.
"We are writing to express our growing concerns about the failure of Stellantis, under your leadership, to honor the commitments it made to the United Auto Workers (UAW) in last year's collective bargaining agreement," says one letter led by Sens. Bernie Sanders (I-Vt.), Gary Peters (D-Mich.), Dick Durbin (D-Ill.), Debbie Stabenow (D-Mich.), and Tammy Duckworth (D-Ill.) and signed by 18 of their Democratic colleagues.
"We urge Stellantis not to renege on the promises it made to American autoworkers and to provide details on the timelines for these investments," the senators wrote.
Meanwhile, 56 members of the Congressional Labor Caucus led by Reps. Debbie Dingell (D-Mich.), Mark Pocan (D-Wis.), and Donald Norcross (D-N.J.) sent a separate letter, this one to Stellantis' board of directors, calling on Chrysler's parent company to "follow through on promises to workers to invest in its domestic workforce."
"Given the significant governmental financial support for Stellantis over the years, we have become alarmed by a steady stream of reports indicating your plans to lay off auto workers and move production out of the United States, and that you are failing to honor contractual commitments that Stellantis made as part of the 2023 national collective bargaining agreement," the letter states.
Last November, UAW workers at the Big Three—GM, Ford, and Stellantis—ended a six-week "stand-up strike" and signed new contracts with better pay, benefits, and working conditions. Stellantis committed to making nearly $19 billion in new domestic investments, reopening its "indefinitely idled" Belvidere, Illinois plant, continue manufacturing the Dodge Durango SUV in Detroit through 2025, and build the next-generation Durango in the city starting in 2026, among other promises.
However, according to the senators' letter:
Stellantis is now delaying planned investments to reopen and expand the Belvidere assembly plant, leaving behind thousands of American workers who built the company into the auto giant it is today. We are also concerned with reporting that Stellantis is planning to move production of the next-generation Dodge Durango out of the United States, after previously announcing layoffs that threaten the economic security and well-being of thousands of autoworkers.
Moreover, Stellantis has stated publicly that it plans to source 80% of supply from "low-cost countries" like Mexico. By your own admission, Stellantis' growth plan hinges on shifting "industrial production into cost-competitive countries" like Mexico, where workers are making substandard wages. These actions violate the obligations Stellantis made to the UAW.
"Taxpayers are currently funding consumer incentives for several Stellantis vehicles and Stellantis is slated to receive $585 million under the Domestic Manufacturing Conversion Grant Program," the House lawmakers noted in their letter. "Under this program, Stellantis is on track to pocket $335 million to reopen the Belvidere Assembly plant in Belvidere, Illinois. As stewards of taxpayer funding, we have a responsibility to ensure these investments benefit the public interest."
"We hope it is clear to you that the American people will not tolerate taxpayer subsidies for a company that is cutting production and slashing jobs—all the while it increases executive compensation, dividends to shareholders, and stock buybacks," the letter adds.
The senators noted that "this year, Stellantis has spent over $8 billion on stock buybacks and dividends to benefit its wealthy executives and stockholders, and that "last year, while blue-collar auto workers in Belvidere were being laid off indefinitely, you were able to receive a 56% pay raise boosting your total compensation to $39.5 million, which made you the highest paid executive among traditional auto companies."
"During the first six months of this year, Stellantis has generated over $6 billion in profits, making it one of the most profitable auto companies in the world," the letter adds. "We believe that if Stellantis can afford to spend over $8 billion this year on stock buybacks and dividends, it can live up to the contractual commitments it made to the UAW."
Last week, the UAW published a powerful video in which union president Shawn Fain makes some of the same demands that are in the lawmakers' letters.
"For years, this company has picked us off, plant by plant, and our leadership lacked the will and the means to fight back," Fain said in the video. "Those days are over."
Fain continued:
Stellantis management has launched a campaign of intimidation and harassment against our members, our local unions, and the International UAW to try to get us to back down from the fight to save our jobs.
I have bad news for Stellantis: We're not going anywhere.
Their corporate lawyers are claiming that our fight to keep jobs in Belvedere, Detroit, and America is based on what they call "sham grievances."
But here's the real sham: Over the past nine weeks, Stellantis has spent over a billion dollars on stock buybacks, all while saying they can't afford to keep their commitments to their own employees. In fact, Stellantis has spent $3 billion on stock buybacks this year alone.
The real sham is this campaign of intimidation and interference in our union's business. Stellantis managers are calling members, threatening their jobs. They're emailing our local presidents threatening lawsuits. This is what happens when a CEO is cornered and isolated. His dealers in America and Europe are turning against him. His suppliers and shareholders are suing him, and he's pushing our customers away.
And the sham is that he will walk away with a golden parachute of millions and millions of dollars, while American autoworkers are left holding the bag.
"The sham took place this week when he was asked about stepping down or being replaced, Carlos Tavares said, and I quote, 'I signed a contract,'" Fain said. "Well, Carlos, the workers at Stellantis signed a contract too, and it's time for you to honor it."
Calling on UAW members to sign a strike authorization pledge over Stellantis' broken promises, Fain vowed that "we will once again save this company from mismanagement, from corporate greed, and from killing tens of thousands of good jobs."
"But only if we stick together," he stressed. "So, are you in? If you are, sign your strike authorization pledge today. And you can do that by going to shitcancarlos.com."
"Let the company know where you stand," Fain added. "And together, let's tell Stellantis: The days of plant closures are over, and Carlos Tavares needs to go."
"As president, he cut taxes for corporations, encouraged outsourcing, and lost nearly 200,000 manufacturing jobs, including auto jobs," said Democratic presidential nominee Kamala Harris.
Democratic nominee Kamala Harris hammered former President Donald Trump's manufacturing record ahead of his visit to the battleground state of Michigan on Friday, pointing out that offshoring of U.S. jobs increased during the Republican nominee's first White House term despite his grand promises to revitalize the nation's industrial base.
"Donald Trump is one of the biggest losers of manufacturing in American history," Harris, who outlined her own domestic manufacturing priorities earlier this week, said in a statement Thursday. "He makes empty promise after empty promise to American workers, but never delivers. As president, he cut taxes for corporations, encouraged outsourcing, and lost nearly 200,000 manufacturing jobs, including auto jobs. He has joked about firing workers, supported state anti-union laws, and suggested companies move jobs out of Michigan."
"Yet it was Trump's trade deal that made it far too easy for a major auto company like Stellantis to break their word to workers by outsourcing American jobs," Harris continued, pointing to the United States-Mexico-Canada Agreement (USMCA). "As one of only 10 senators to vote against USMCA, I knew it was not sufficient to protect our country and its workers. Many who voted for this deal conditioned their support on a review process, which as president I will use."
"On his watch, a Warren car plant closed and the auto industry bled thousands of jobs."
Trump has two campaign events scheduled in Michigan on Friday as recent polling shows him narrowly behind Harris in the key state, which President Joe Biden won in 2020.
Despite his starkly anti-worker record, Trump has sought to appeal to members of the United Auto Workers (UAW)—which has endorsed Harris—and other unions in Michigan and elsewhere during his bid for another term, issuing sweeping promises and dire warnings about the future of U.S. manufacturing if he loses in November.
If he doesn't prevail, Trump said during a town hall in Flint, Michigan last week, "there will be zero car jobs, manufacturing jobs."
"It will all be out of here," he added.
Democrats have countered such claims by pointing to the fact that offshoring accelerated under Trump, particularly due to the passage of the Tax Cuts and Jobs Act—a law that delivered massive tax breaks to the rich and incentivized corporate offshoring.
A Public Citizen analysis published in the final months of Trump's presidency found that the Republican nominee's administration "awarded more than $425 billion in federal contracts to corporations listed among those responsible for offshoring 200,000 American jobs" during his first term.
The Economic Policy Institute separately found that roughly 1,800 U.S. factories shuttered during Trump's first term.
One of those factories was a General Motors plant in Warren, Michigan—a closure that the Democratic National Committee (DNC) highlighted with a billboard display in the city ahead of Trump's visit Friday.
“Donald Trump broke his promises to Michigan's working families," said Stephanie Justice, a DNC spokesperson. "On his watch, a Warren car plant closed and the auto industry bled thousands of jobs."
In a video released earlier this week as part of its 2024 election efforts, UAW president Shawn Fain called Trump a "con man" who is merely posturing as an ally of the working class while pushing policy changes that would primarily benefit those of his own class, the ultra-wealthy.
"We can't get fooled or distracted by a con man like Donald Trump. That's why I'm voting for Kamala Harris," said Fain. "That's why our union has endorsed Kamala Harris, and that's why our country needs Kamala Harris as our next president."
Throughout the 2024 campaign, Trump has proposed aggressive tariffs to help protect and restore U.S. manufacturing. Earlier this week, the former president singled out John Deere, a federal contractor that has announced plans to lay off roughly 2,000 workers and shift some of its production to Mexico.
"I am just notifying John Deere right now that if you do that, we are putting a 200% tariff on everything that you want to sell into the United States," Trump said during a campaign event in Pennsylvania earlier this week.
In an op-ed for Common Dreams on Thursday, Labor Institute executive director Les Leopold implored the Harris campaign and the Democratic Party more broadly to do more to counter Trump's messaging, specifically by calling out and moving to penalize companies that carry out mass layoffs while rewarding their rich investors with stock buybacks and dividends.
"Because Trump has difficulty focusing on a coherent message, the field is still open for the Democrats to put forth a new policy that directly affects the jobs of millions of workers," wrote Leopold. "Harris should give a primetime talk and focus on the $700 billion in taxpayer money that now goes to private corporations for goods, services, and subsidies."
"Here's the line she should stress: No taxpayer money shall go to corporations that lay off taxpayers or conduct stock buybacks," he continued. "The Democrats must decide, and soon, whether they really are the party of the working class. If they are, then they must fight hard to save worker jobs from unabated corporate greed."
"In our 2023 UAW contract with Stellantis, we won historic gains," said the union. "A year later, the company wants to go back on their commitments to Stellantis autoworkers. Our answer is simple: HELL NO."
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."