*
About 80 members of Congress urging Stellantis ( STLA ) to honor
contract
commitments with UAW
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Stellantis ( STLA ) say not violating deal with union, cites
changing
market conditions
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UAW could strike as tensions build in lead-up to US
election
(Adds details on letters, Stellantis ( STLA ) and UAW battle in
paragraphs 7-11)
By Nora Eckert and David Shepardson
DETROIT, Oct 23 (Reuters) - Nearly 80 members of
Congress, including the Senate's top two Democrats, on Wednesday
urged automaker Stellantis ( STLA ) to honor investment
commitments that are part of its contract with the United Auto
Workers union.
The union and the Jeep-maker have been in a bitter battle
after Stellantis ( STLA ) said it would delay a planned $1.5 billion
investment to reopen an assembly plant in Belvidere, Illinois,
though the automaker insists it is committed to the plan and
denies it is violating the contract.
Democratic members of the House of Representatives and U.S.
Senate sent two separate letters, first reported by Reuters, to
the automaker on Wednesday outlining their concerns. The
Democratic lawmakers including Senate Majority Leader Chuck
Schumer and Senator Dick Durbin cited the Illinois plant delay
and other reported decisions by Stellantis ( STLA ).
"These actions violate the obligations Stellantis ( STLA ) made to
the UAW," the lawmakers wrote to Stellantis ( STLA ) CEO Carlos Tavares,
asking the automaker, which has come under heat from dealers and
shareholders for its declining sales, to lay out a timeline for
the investments.
Chrysler owner Stellantis ( STLA ), which recently shook up its top
leadership as it tries to turn around slipping North American
sales, is now facing another nationwide walkout from the union,
just about a year after UAW president Shawn Fain led a six-week
strike against Detroit's Big Three automakers.
The company did not immediately respond to a request for
comment.
The UAW's grievances, echoed in those letters, center around
product and investment commitments made during the contract
negotiations last autumn. Stellantis ( STLA ) agreed to reopen the
shuttered Illinois assembly plant to build new mid-size trucks
by 2027.
The carmaker this month sued the UAW in federal court over
the allegations and said it was not in violation of the
contract. The agreement allowed Stellantis ( STLA ) to delay financial
commitments if market conditions worsen, but the union and
signers on the two letters from Congress are not satisfied with
the company using this as a reason to shift plans.
"Stellantis's ( STLA ) recent attempt to justify delays in its
contractually mandated investment and production commitments did
nothing to assuage our concerns. Stellantis ( STLA ) appears resolved to
claim market conditions prevent you from honoring these
commitments," said the letter sent from dozens of Democrats in
the U.S. House of Representatives.
Tensions between the union and carmaker have risen in the
lead-up to the Nov. 5 U.S. Presidential election, with Vice
President Kamala Harris specifically calling out Stellantis ( STLA ) in
public statements for taking actions that "break their word to
workers".
The union has laid the groundwork for a nationwide walkout
at Stellantis ( STLA ) through filing grievances and holding strike votes
at its local chapters. So far, some local chapters have already
voted to authorize a strike if the two sides cannot come to an
agreement.