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By Nora Eckert and Abhirup Roy
DETROIT (Reuters) – The United Auto Workers union is set to conduct strike authorization votes at one or more of its Stellantis local chapters in the coming days, announced union president Shawn Fain on Tuesday. This could potentially lead to significant disruptions for the Jeep maker.
In recent months, Fain has criticized Stellantis CEO Carlos Tavares for not upholding the product and investment commitments that the automaker had agreed to following a six-week strike last autumn.
Stellantis stated that its primary focus remains on providing consumers with a range of affordable conventional and electric vehicles while ensuring the sustainability of the company and its workforce.
“The commitments made during the 2023 negotiations cover the duration of the 4-year, 7-1/2 month agreement, so it’s not unexpected that they have not been fully realized in the first year,” the company mentioned in a statement.
Local Stellantis chapters have lodged grievances regarding the alleged plans to shift production of the Dodge Durango outside the United States, as per union leaders. However, Stellantis asserted that there are no confirmed plans to relocate production of the vehicle.
The union has also highlighted the delays in a planned multi-billion dollar investment for a new battery plant and factory in Belvidere, Illinois by the company.
“We have the full right and authority to resort to strike action if necessary,” Fain stated in a video message on Tuesday evening.
Automotive union strikes typically occur during national contract negotiations every four years, with large walkouts outside of this timeframe being uncommon.
“The stakes are incredibly high. For the union, this is a pivotal moment to ensure that the gains they have secured are respected,” mentioned Harley Shaiken, a labor professor at the University of California, Berkeley.
Fain noted that 28 Stellantis locals have filed grievances, encompassing tens of thousands of UAW members. A UAW official indicated that approximately 98% of Stellantis’ membership is covered by these grievances, making a potential strike as impactful as a nationwide walkout.
UNION STRATEGIC MOVE
The union’s approach of targeting local chapters strategically is considered more effective than a nationwide walkout, which Stellantis could argue violates their contract, as per Shaiken.
On Monday, the union also filed unfair labor practice claims with the National Labor Relations Board against Stellantis, citing the company’s refusal to disclose information about its future product plans.
Securing jobs at the Belvidere plant was one of the union’s major victories following the nationwide strike against Stellantis, Ford Motor, and General Motors last year, symbolizing the union’s ability to safeguard jobs amid the industry’s shift to electric vehicle production.
The UAW also achieved a record 25% general wage increase, the reinstatement of cost-of-living adjustments, and the right to strike over product commitments and investments, enabling them to potentially initiate a walkout against Stellantis now, according to Fain.
Simultaneously, Stellantis has faced criticism from its dealers and shareholders due to rising inventories and sluggish sales in recent months.
“It’s a rare occurrence for auto workers to align with dealers, suppliers, and shareholders. However, today is that day, and we are prepared to strike to hold Stellantis accountable,” Fain stated.
In accordance with union procedures, Stellantis has several opportunities to respond to the grievances raised by UAW local chapters. If the issue remains unresolved, the union has 60 days to conduct a vote on whether to strike.
Once a majority of workers at a union local authorize a strike, the UAW engages in seven meetings with the company to resolve the issue or proceed with a strike.
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