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Stellantis confirms Belvidere plant reopening is delayed, but stands by commitment to reopen

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Shawn Fain, president of the United Auto Workers union, used an address on the opening night of the Democratic National Convention in Chicago to accuse Stellantis NV of trying to back out of commitments it made during contract negotiations last year to reopen an idled Illinois auto plant.

Fain, who took the helm of the UAW last spring, won record contracts from General Motors Co., Ford Motor Co., and Stellantis last fall after a raucous six-week strike in which President Biden visited picket lines to show his support. But he also stoked rancor among company executives with confrontational, political campaign-style attacks on the automakers.

As part of the negotiations, Stellantis, which owns the Jeep and Ram brands, agreed to restart its plant in Belvidere, Illinois and turn it into an auto parts hub, with a mid-sized pickup truck planned for 2027. Biden championed the deal in a visit to Illinois in November, and his administration announced a $334 million grant to the company last month to help retool to make EVs.

“Stellantis must keep the promises they made to America in our union contract,” Fain said during his speech, donning a red UAW T-shirt emblazoned with the message “Trump is a scab.”

* Crain’s today…

In a written statement released today, Stellantis said the Belvidere plant project is delayed but that the company will honor its commitment. Stellantis said it “strongly objects” to the UAW’s accusations.

“To ensure the company’s future competitiveness and sustainability, which are necessary to preserve U.S. manufacturing jobs, it is critical that the business case for all investments is aligned with market conditions and our ability to accommodate a wide range of consumer demands,” the statement said. “Therefore, the company confirms it has notified the UAW that plans for Belvidere will be delayed, but firmly stands by its commitment.”

The company also pushed back on the UAW’s claim that the company has not upheld its side of the bargain reached at the end of the acrimonious national strike.

“The company 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. In fact, the UAW agreed to language that expressly allows the Company to modify product investments and employment levels. Therefore, the Union cannot legally strike over a violation of this letter at this time.”

posted by Rich Miller
Tuesday, Aug 20, 24 @ 1:16 pm

Comments

==donning a red UAW T-shirt emblazoned with the message “Trump is a scab.”==

Did Trump refuse to join Presidential Candidates Local 48?

Comment by City Zen Tuesday, Aug 20, 24 @ 8:42 pm