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*** UPDATED x1 - Ford to invest $430 million in local factories *** Stellantis coverage roundup

Monday, Oct 30, 2023 - Posted by Rich Miller

* Crain’s

Illinois is a big winner in the new contract between the United Auto Workers and Stellantis, which will reopen its Belvidere plant to make trucks and build a new battery factory.

The tentative deal reached Saturday could result in more than 3,000 jobs, more than doubling the company’s recent headcount, with an investment of billions of dollars, Gov. J.B. Pritzker says.

“Eight months ago, Stellantis idled Belvidere Assembly Plant, putting 1,200 of our members on the street. From the strength of our strike, we are bringing back those jobs and more,” UAW Vice President Rich Boyer said in a statement. “Stellantis is reopening the plant, and the company will also be adding over a thousand jobs at a new battery plant in Belvidere.” […]

Stellantis marks the second major EV-battery win for the governor, who won re-election last year and will host the Democratic National Convention in Chicago next year. Last month, Chinese battery maker Gotion Hi-Tech said it will build a $2 billion battery-assembly plant in Manteno that will eventually employ 2,600 workers. The deal included $536 million in tax incentives and more in property tax concessions from local governments.

* Tribune

The tentative agreement, announced Saturday by the UAW, includes a 25% increase in base wages, cost of living adjustments and the right to strike over plant closures, mirroring a similar deal struck by Ford on Wednesday. But the Stellantis agreement also would restart the 60-year-old Belvidere Assembly Plant, which has been idled since February.

As part of the deal, the Belvidere plant will get both an unnamed vehicle and an adjacent battery manufacturing facility, bringing thousands of jobs back to the small river city near Rockford. The state recently optioned a large parcel of land next to the 280-acre Belvidere plant to accommodate manufacturing expansion. […]

Sources said the Belvidere plant may become home to a light truck, a battery plant and a parts distribution center. The new vehicle to be built at Belvidere would likely be electric, sources said. […]

The plant’s future became a pivotal negotiating point during the six-week UAW strike, with everything from a “megahub” parts distribution center to a battery plant on the table. The agreement seems to incorporate all of the above, an outcome that was met with enthusiasm in Belvidere.

* UAW VP Rich Boyer says the plant will produce a new midsize truck and will run two shifts, according to Motor1.com

In an official statement published on YouTube, the UAW’s Vice President Rich Boyer shared the good news: “UAW family, it is… my great honor to announce that we have saved Belvidere. Again, we have saved Belvidere… We have won a new vehicle at Belvidere…it will be a midsize truck, and we will have two shifts.”

* WIFR

UAW Vice President Rich Boyer announced Saturday that the Belvidere assembly plant is going to bring back over a thousand jobs upon its return, and bring with it a new electric vehicle battery plant what will more than double that amount.

“We got everyone that lost their job in Belvidere put back on temporary layoff meaning they’ll get sub-pay and health care until their job is back in Belvidere,” says Boyer says. “Under our contract members from Belvidere who have been scattered across this country will have the right to return back home to Belvidere.”

While the agreement goes through ratifications, Stellantis workers are expected to return to work. State Senator Steve Stadelman says he hopes things can keep moving forward in an optimistic fashion.

“I think at the end of the day, workers want to be paid what they think they deserve, and we allow negotiations, and efforts to make sure that working men and women get what they want. Hopefully that’s the end result of this long process,” says Stadelman. “Hopefully everything comes together, hopefully the contract leads to the reopening of the Belvidere plant and good news for the area. But it’s something that the state of Illinois and I have been personally involved in making sure that we get everybody on the same page to providing these incentives and encouraging Stellantis to use that plan.”

* ABC7

President Joe Biden called the deal a “ground-breaking contract” that offers “record raises, more paid leave, greater retirement security, and more rights and respect at work.”

* Gov. Pritzker…

With the announcement that United Auto Workers and Stellantis have reached a tentative agreement that’s good for workers and good for the state of Illinois, auto workers can get back on the job with higher wages, expanded benefits, and new and valuable opportunities in a growing industry.

For over two years, I have been laser-focused on working toward a permanent solution in Belvidere that retains and grows good-paying jobs, while supporting economic development in the surrounding region. Since the plant was idled in February, we’ve provided support to furloughed auto workers, while concurrently leading a collaborative effort with local officials and legislators to craft aggressive incentives that position Illinois at the forefront of the EV manufacturing industry. Thanks to that collaboration and the passage of the Climate and Equitable Jobs Act and the Reimagining Energy and Vehicles Act, we are on the verge of significantly advancing that effort.

I’ve been in constant contact with auto workers, Stellantis executives, UAW representatives, and the White House as the bargaining has unfolded, and I am delighted we are now on the verge of getting this done. I look forward to finalizing the state’s economic package and not only reopening the shuttered assembly plant in Belvidere to manufacture electric vehicles, but also co-locating a new battery production facility. This will be thousands of jobs, billions in investment, and a huge win for Illinois.

* US Rep. Bill Foster…

“The tentative contract agreement announced by the UAW and Stellantis today, that promises a strong future for the Belvidere Assembly Plant in both vehicle and battery production, is an important milestone along a path involving months of hard work by negotiators on both sides, as well as state, local, and federal officials.

“It is a cause for celebration for Belvidere and the generations of workers who made their careers at the Assembly Plant. Under the Governor’s leadership, powerful state incentives have been assembled to help close the deal; local officials made sure that the site would accommodate Stellantis’ ambitious future plans for Belvidere; and the federal incentives for EV and battery production from Congress and the Biden Administration will continue to be essential in ensuring the economic future of the Assembly Plant for generations to come.

“This milestone would not have been achieved without the incredible support for the Belvidere Plant from UAW workers throughout the country — the truest expression of the meaning of the words “union solidarity.”

“This is a big win for Illinois, and means that the iconic Belvidere Assembly Plant should remain the beating heart of the entire community, and that the workers who’ve been displaced since the idling can finally return to work with a bright future.”

* US Sen. Dick Durbin…

From my very first meeting, and every one since, the President of UAW, Shawn Fain, made it clear that the future of Belvidere was a critical bargaining issue. He kept his word. Today’s announcement creates a path for every Belvidere worker to return and be part of a new EV launch.

“I spoke to Governor Pritzker this afternoon. There is a need for federal infrastructure investment on the site and I pledged our delegation’s total cooperation in that effort.

* US Sen. Tammy Duckworth…

Today’s tentative agreement announcement is not only great for Stellantis workers across the country — a historic deal to help to bolster UAW members and their families — but it’s especially impactful for Belvidere. This tentative agreement shows the power of companies and labor coming together to empower workers and provide them a fair and living wage while ensuring modern businesses can still compete, grow profits and succeed. This reinforces what we all know: that the future of manufacturing doesn’t mean fewer workers, the future of manufacturing depends on the power of our workforce, and I’m so proud to join the brave UAW workers in celebrating this historic tentative agreement today.

* Meanwhile, General Motors has reached an agreement as well

General Motors and the United Auto Workers union have reached a tentative contract agreement that could end a six-week-old strike against Detroit automakers, two people briefed on the deal said Monday.

The agreement follows the pattern set with Ford last week and Jeep maker Stellantis over the weekend.

The deals will last four years and eight months and include 25% general pay raises and cost of living adjustments. Combined they bring the wage increase to over 30% over the life of the contract.

*** UPDATE *** Crain’s

Ford will invest more than $400 million in its two Chicago-area factories as part of its proposed new contract with the United Auto Workers.

The company will invest $400 million at its Torrence Avenue factory where it makes Explorer SUVs, says Chris Pena, president of UAW Local 551, which represents about 6,000 workers at the plant. Ford invested $900 million in the plant in 2015 during its last major upgrade.

Ford also says it will invest $30 million at its stamping plant in Chicago Heights, which employs about 1,200 workers, and supplies the Torrence Avenue assembly line.

       

23 Comments
  1. - Flyin'Elvis'-Utah Chapter - Monday, Oct 30, 23 @ 10:34 am:

    Congratulations, brothers and sisters.

    America works best when it works union.


  2. - Oswego Willy - Monday, Oct 30, 23 @ 10:36 am:

    ===Illinois is a big winner===

    The spelunkers of misery and carnival barkers gotta hate when Illinois wins… with organized labor also a leader in this… and touted as groundbreaking.

    Sometimes being part of a winning ending is worth the political capital of “working together”


  3. - Opening Date - Monday, Oct 30, 23 @ 10:49 am:

    Huge victory. Huge. The work the Governor has done on this front (and has convinced the legislature to do) is nothing short of impressive.


  4. - Nick - Monday, Oct 30, 23 @ 10:56 am:

    Huge win for Belvidere & the Rockford area. Good jobs, hopefully long-lasting ones.


  5. - Huh? - Monday, Oct 30, 23 @ 11:15 am:

    There is breaking news that the UAW has also settled with GM.

    https://www.washingtonpost.com/business/2023/10/30/gm-uaw-tentative-agreement/


  6. - Cool Papa Bell - Monday, Oct 30, 23 @ 11:24 am:

    Heard this weekend that Fain and the UAW are going to push harder at non-union plants in the south to unionize them.

    I wish them the best and if they could turn one or two it would be a massive victory for the UAW. It won’t be easy, but if it was ever going to be done - now is the time.


  7. - RKFD guy - Monday, Oct 30, 23 @ 11:28 am:

    I know Dave Vella worked hard on this and deserves serious credit. It’ll sure help him in Nov.


  8. - Jocko - Monday, Oct 30, 23 @ 11:30 am:

    ==push harder at non-union plants in the south==

    What’s galling is that both Toyota and Volkswagen workers are unionized in their countries of origin.


  9. - Demoralized - Monday, Oct 30, 23 @ 11:32 am:

    Very good news for Illinois.

    And good for the union on their settlement. These companies (and others like them) are on notice that workers aren’t going to put up with them not sharing in the profits any longer and that workers are going to demand their fair share.


  10. - Rich Miller - Monday, Oct 30, 23 @ 11:40 am:

    ===going to push harder at non-union plants in the south===

    Unless they also get big pay raises, this new contract could help woo ‘em over.


  11. - downstate - Monday, Oct 30, 23 @ 11:45 am:

    This is a win for downstate, the UAW, the stateliness region, Gov Pritzker, Sens Durbin and Duckworth but also for behind-the-scenes leadership from folks like Andy Manar.


  12. - Almost the Weekend - Monday, Oct 30, 23 @ 12:01 pm:

    Shawn Fain has done an excellent job as UAW President. He’s effectively done what neither Durbin, Duckworth, nor Pritzker could do with the idle Belivedere Plant.

    UAW needed to clean house and the rank and file chose correctly. A perfect time example of term limits working haha.


  13. - New Day - Monday, Oct 30, 23 @ 12:17 pm:

    “Unless they also get big pay raises, this new contract could help woo ‘em over.”

    But of course this is where the free riders come in. The UAW contract will push up salaries even at non-union plants to prevent them from joining the union.

    BTW, this is a HUGE win for JB and his team. Success begets success and you’re starting to put together an impressive string of economic development wins. These wins are revitalizing the manufacturing sector of a state that was thought to be dead in this area. Not so much. Watch this space.


  14. - Grandson of Man - Monday, Oct 30, 23 @ 12:28 pm:

    UAW is creating more net job growth in the Stellantis deal than Rauner did in his entire term. /s

    How much needless damage was caused to turn Illinois into a poorer red state? That economic model is kaput now as political policy, in Illinois and elsewhere.


  15. - JS Mill - Monday, Oct 30, 23 @ 1:56 pm:

    Great news, as is the increased investment in their Illinois plants.

    Funny, I recall hearing how Illinois isn’t “competitive” and that everyone is leaving. This news will debunk that nyth.


  16. - Arsenal - Monday, Oct 30, 23 @ 2:37 pm:

    It’s really funny how JB has gotten so much of this economic development stuff that Rauner so coveted.

    I mean, proof is in the pudding and there’s no guarantee that any of these will work out the way we hope. But Rauner would’ve killed to be able to make any one of these announcements.


  17. - Rich Miller - Monday, Oct 30, 23 @ 2:40 pm:

    ===that Rauner so coveted===

    “I want every kind of job and I want higher incomes for every family,” Rauner told host Tom Miller on Carterville-based WJPF, a station which bills itself as the voice of southern Illinois.

    “I was talkin’ to a UAW (United Auto Workers) member up in Bloomington when Mitsubishi closed that plant,” Rauner said. “They shut it down, and I tried to find another auto company to buy it. But no auto company wants to invest in Illinois because of (House Speaker Michael) Madigan’s power, because of regulations and the taxes.”

    Rauner said he told this worker: “I can’t give this plant away and I want to protect your job. … I want to keep every UAW job in Illinois.”

    https://www.sj-r.com/story/opinion/columns/2017/12/19/rauner-says-nobody-will-buy/16799651007/


  18. - Rich Miller - Monday, Oct 30, 23 @ 2:41 pm:

    ===that Rauner so coveted===

    “You can’t get a new auto plant built in a ‘closed-shop’ state,” he told the Pantagraph’s editorial board. “I went to Japan to bring the Toyota-Mazda venture here to McLean County. … They said they love Illinois, they love central Illinois, they love the workforce here. They were coming.”

    “But the board members said, ‘This board of directors will not build a new plant in a ‘closed-shop’ state. Can you make it so McLean County is not?’ I said, ‘I proposed it, but that’s not an option right now,’” he continued. “So they said, ‘Well then, you know what, we’re going to another state.’”

    https://www.sj-r.com/story/news/state/2018/09/28/rauner-huge-toyota-mazda-plant/9756711007/


  19. - Rich Miller - Monday, Oct 30, 23 @ 2:42 pm:

    Lesson: If you believe you’re gonna lose from the start, you’re gonna lose.


  20. - New Day - Monday, Oct 30, 23 @ 4:47 pm:

    That’s one lesson. The other is that if you spend all your time bad-mouthing your own state, you’re a pretty lousy salesman and unlikely to win new business. On the other hand, if you come into office committed to being the salesman-in-chief for your state and actually commit resources to the task, you can win. Honestly, it’s not that complicated.


  21. - SB Fisher - Monday, Oct 30, 23 @ 6:21 pm:

    “Shawn Fain has done an excellent job as UAW President. He’s effectively done what neither Durbin, Duckworth, nor Pritzker could do with the idle Belivedere Plant.”

    This all day long, its disingenuous at best for the governor or any of the other politicians to be claiming any credit for this, without the efforts of the UAW holding the line those jobs were not coming back to Belvidere.


  22. - Rich Miller - Monday, Oct 30, 23 @ 7:22 pm:

    ===That’s one lesson. The other is===

    Agreed.


  23. - Oswego Willy - Monday, Oct 30, 23 @ 8:21 pm:

    - Rich - and - New Day -

    Really great stuff, all good context.

    Important context to this great news.

    Thanks to you both


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