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UAW urges Stellantis workers to authorize strike, accuses car maker of breaching contract
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UAW urges Stellantis workers to authorize strike, accuses car maker of breaching contract
Sep 27, 2024 7:18 PM

Sept 27 (Reuters) - The United Auto Workers union asked

the workers at Stellantis ( STLA ) to authorize a strike,

accusing the French-Italian car maker of breaking its contract

promises, UAW President Shawn Fain said in a letter to the

union's U.S. chapters on Friday.

"We unanimously recommend to the membership that every UAW

worker at Stellantis ( STLA ) prepare for a fight, and we all get ready

to vote YES to authorize a strike at Stellantis ( STLA )," Fain wrote in

the letter that the UAW shared in a post on Facebook.

The union's grievances center around Stellantis' ( STLA ) product and

investment commitments made during contract negotiations last

autumn.

"We reviewed the serious violations of our contract and

patterns of illegal behavior by Stellantis ( STLA ). The evidence is

clear that CEO Carlos Tavares is steering Stellantis ( STLA ) on a crash

course that will cause our members tremendous harm," the letter

on Friday added.

Stellantis ( STLA ) did not immediately respond to a Reuters request

for comment. However, Stellantis ( STLA ) has previously denied failing

to honor commitments with UAW, with its North America COO Carlos

Zarlenga saying the company "has abided, and will continue to

abide, by the agreement the parties reached in 2023."

Chrysler-parent Stellantis' ( STLA ) North American operations have

been struggling and has attracted criticism from consumers and

workers who have argued it has not done enough to invigorate

demand.

The main sticking points for the UAW revolve around delays

of a planned multibillion-dollar investment into a new battery

plant and factory in Belvidere, Illinois and possible plans by

Stellantis ( STLA ) to move production of the Dodge Durango SUV out of

the United States.

Fain said earlier this month that several of its union local

chapters were laying the groundwork for strikes.

Tavares has said he is focused on improving Stellantis' ( STLA )

performance in the U.S., and stated a willingness to shut down

brands globally if they do not make money.

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