Aug 20 (Reuters) - Stellantis ( STLA ) said on Tuesday
its planned investments at Belvidere, Illinois, will be delayed
but it is committed to moving forward and is not in violation
of its union contract.
On Monday, the United Auto Workers union said some of its
local units representing tens of thousands of workers at
Stellantis ( STLA ) were preparing to file grievances and could launch a
nationwide strike, accusing the automaker of not honoring
production commitments.
Chrysler-parent Stellantis ( STLA ) said on Tuesday it had told the
UAW of the delay "but firmly stands by its commitment" saying
the new timetable is needed "to ensure the company's future
competitiveness and sustainability, which are necessary to
preserve U.S. manufacturing jobs."
The UAW did not immediately comment.
Stellantis ( STLA ) agreed to build a new $3.2 billion battery plant
and invest $1.5 billion in a new mid-size truck factory in
Belvidere and add 5,000 total U.S. jobs by 2028 as part of a new
contract deal, the UAW said in November.
UAW President Shawn Fain referred to the issue during
remarks at the Democratic National Convention on Monday night.
"Let me be clear: Stellantis ( STLA ) must keep the promises they
made to America and our union contract. And the UAW will take
whatever action necessary at Stellantis ( STLA ) or any other corporation
to stand up and hold corporate America accountable," he said.
"(Stellantis ( STLA )) 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," the
company said Tuesday.