Stellantis has issued a response to UAW labour union accusations that it has backtracked on commitments made late last year as part of its four-year contract deal.
The UAW has accused Stellantis of not honouring production commitments that were made in 2023 as part of a new labour agreement.
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On its website, the union said: “Thousands of UAW members sacrificed on the picket line to win this contract, and we intend to enforce it, even if that means going back on strike.”
Stellantis agreed to build a new $3.2 billion battery plant and invest $1.5 billion in a new mid-size truck factory in Belvidere, Illinois.
It also said it would add 5,000 total US jobs by 2028 as part of a new contract deal struck last November, according to the UAW.
The Stellantis statement said that to ensure future competitiveness, the business case for investments must be aligned with market conditions and that it has notified the UAW that ‘plans for Belvidere will be delayed, but firmly stands by its commitment’. It also says it has not violated commitments made and ‘strongly objects to the Union’s accusations’.
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By GlobalDataThe full Stellantis statement reads:
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. Therefore, the Company confirms it has notified the UAW that plans for Belvidere will be delayed, but firmly stands by its commitment. As always, the Company is committed to engaging with the Union on a productive, respectful and forward-looking dialogue.
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.
