Los Angeles: The United Auto Workers (UAW) union announced that members at Stellantis’ Los Angeles parts distribution center voted to authorize a strike if the carmaker fails to address grievances over U.S. investments. This is expected to be one of several similar votes as the union puts pressure on Stellantis.
UAW President Shawn Fain recently accused Stellantis of failing to honor product and investment commitments made during contract negotiations last autumn. In response, Stellantis filed a federal lawsuit, stating that the UAW violated the contract by threatening a strike over delays in planned investments. The company seeks to hold the union accountable for potential revenue loss resulting from any strike action.
In 2023, Stellantis agreed to invest $1.5 billion in its Belvidere, Illinois plant to produce mid-size trucks by 2027, as part of a larger $19 billion investment plan. However, due to changing economic conditions and a decline in electric vehicle demand, Stellantis acknowledged delays in some investments, stating that adjustments are necessary for future competitiveness.
Despite Stellantis’ stance, Fain and UAW members argue that the company is reneging on its promises. The automaker maintains that investment plans were always subject to market conditions, with provisions in the contract clearly outlining this.
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