DETROIT, Mich. (WTVO) — To support a one-day strike by Stellantis workers in Italy, United Auto Workers (UAW) president Shawn Fain released a video calling for members nationwide to authorize a strike against the automaker.
The UAW claims Stellantis has not honored the terms of its 2023 contract by delaying the reopening of the Belvidere Assembly Plant and removing production of the Dodge Durango from the Jefferson North Assembly Plant.
“For years, this company has picked us off, plant by plant, and our leadership lacked the will and the means to fight back. The Stellantis Council unanimously decided that those days are over. All 200 UAW leaders unanimously recommended to the membership that every UAW worker at Stellantis prepare for a fight and that we all get ready to vote yes to authorize a strike at Stellantis,” Fain said.
Stellantis has filed several lawsuits, saying the contract allowed them to shift investments if market conditions required it, but reaffirmed that is has not abandoned its plan to reopen the plant.
“The facts are indisputable: the transition to electrification is happening at a slower pace than expected,” Stellantis told workers in an email last week. “We knew that slowing consumer EV adoption could potentially delay our product launches and investment decisions. In fact, many of our competitors know this too, and also have announced investment and product delays as well as outright product cancelations.”
The multinational group, which was created in 2021 from the merger of Fiat-Chrysler and PSA Peugeot, recorded a sharp drop in output at most of its Italian plants in the first half of 2024. Over the past 17 years, the carmaker has slashed its Italian production by nearly 70%.
CEO Carlos Tavares has recently blamed EU carbon emission rules for raising production costs, suggesting that the group may be forced to close some assembly plants to meet competition from China. He said he “could not rule out” job cuts, reiterating a need for additional state incentives to spur demand for electric cars.
Stellantis, which makes Jeep and Chrysler vehicles, has been in the spotlight following a profit warning in which it said it expected to finish the year with a loss of up to 10 billion euros ($11.2 billion).
Tavares has also been under fire from U.S. dealers and the United Auto Workers union amid a dismal financial performance this year, after being caught off guard by too many high-priced vehicles on dealer lots. He has been trying to cut costs by delaying factory openings, laying off union workers and offering buyouts to salaried employees.
The group in September announced that it was looking for a successor for 66-year-old Tavares as part of a planned leadership change. Tavares’ five-year contract was a little over a year from its expiration date in 2026, but the company hinted at the time it was possible he might remain in the job beyond that.
The Associated Press contributed to this report.
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