The United Automotive Workers (UAW) union has threatened to escalate labor efforts into an organized strike against Stellantis, claiming that the multinational company has failed to keep to promises of re-opening an Illinois factory. Now, one UAW official has said the Stellantis CEO “needs to go,” following his recent visit to Detroit, Michigan.
Last week, the UAW officially threatened to launch a strike at Stellantis, citing the company’s delays to plans of re-opening a Belvidere, Illinois factory, which were enshrined in union contracts in November. Following the threat, Stellantis released an official statement claiming that such a strike would be illegal, as reported last week by Detroit publication WXYZ.
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“To ensure the Company’s future competitiveness and sustainability, which are necessary to preserve U.S. manufacturing jobs, it 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 wrote in the statement. “Therefore, the Company confirms it has notified the UAW that plans for Belvidere will be delayed, but firmly stands by its commitment. As always, the Company is committed to engaging with the Union on a productive, respectful and forward-looking dialogue.”
The Company has not violated the commitments made in the Investment Letter included in the 2023 UAW Collective Bargaining Agreement and strongly objects to the Union’s accusations. In fact, the 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 statements came during a visit from Stellantis CEO Carlos Tavares to Detroit, Michigan last week, said to be focused on helping to improve profitability for the company’s North American arm. According to one source in the original report, “North American operations are basically funding the rest of the group.”
On Friday, UAW Stellantis Director Kevin Gotinsky called for Tavares to step down in a statement to Automotive News, following a rally at the company’s Sterling Heights, Michigan factory.
“I think he either needs to go or get someone close by him to work side by side with him to manage the company, because I don’t think he knows what he’s doing,” Gotinsky said, adding that he didn’t believe such a strike would be illegal, as Stellantis claimed.
In a recent video, UAW President Shawn Fain also made similar statements to Gotinsky’s call for Tavares’ resignation:
“It’s time for a change, and that starts with the man at the top,” Fain said.
A memo sent to Stellantis employees that was obtained by Automotive News also said that employment levels and product investment plans were “contingent upon plant performance, changes in market conditions, and consumer demand continuing to generate sustainable and profitable volumes for all of the U.S. manufacturing facilities described above.”
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