Stellantis and the UAW are embroiled in a heated fight that is escalating quickly. The two sides have been sparring for months after Stellantis announced plans to delay the reopening of the Belvidere Assembly Plant in Illinois over "market conditions." The UAW contends that the move is a ploy to kick the can past their contract's expiration date and never open the plant. Stellantis insists that this is a delay, not a cancellation.
Last Thursday, UAW members at the automaker's Los Angeles Parts Distribution Center voted to request strike authorization if the company and union can’t come to terms. While several UAW locals have filed grievances against the company since August, L.A. is the first to take it to the next level. The union says Stellantis has violated product and investment commitments ad threatened more strike authorization votes.
In a statement, UAW President Shawn Fain said, “Stellantis made a contractual promise to invest in America and we are not going to let them weasel out of it.”
Most Read on IEN:
Last year, the union won $19 billion in investment commitments and the ability to strike if the company fails to keep those promises. According to the UAW, Stellantis has thus far put forward investment plans equal to only about 2% of the $19 billion, and is now publicly backtracking on plans in Belvidere, and to build the Dodge Durango in Detroit.
Last week, Stellantis started firing back. After filing an initial lawsuit against the UAW and Local 230 in Los Angeles, Stellantis filed eight additional lawsuits against the UAW and 23 local unions. The lawsuits prompted a meeting between the two sides on Saturday, during which the UAW proposed, according to Stellantis, reinstituting a concept called the jobs bank, a contributing factor to the automaker’s bankruptcy in 2009.
The jobs bank prohibited automakers from laying off employees. By the 2000s, Chrysler had more than 2,000 employees in the jobs bank. These were employees on the active payroll, but were not allowed to perform any production work.
Stellantis says the UAW is proposing a reinstatement of the jobs bank not only for employees in Belvidere, but for some 900 employees who transferred from Belvidere to other locations.
Stellantis rejected the UAW’s latest proposal because it would revert to prebankruptcy terms and conditions that would jeopardize the company’s future.
Stellantis admitted that the situation in Belvidere remains "extremely unsettling" for employees, but noted that the employees were placed on temporary layoffs, still earning 74% of pay and full healthcare benefits.
Stellantis maintains its position that any call for a strike by the UAW would be illegal, and if necessary, the company will see the litigation through and hold the UAW responsible for lost revenue, which the automaker says could amount to tens of millions a day in lost production.
Click here to subscribe to our daily newsletter featuring breaking manufacturing industry news.
WEBVTT
X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:0
00:00.389 --> 00:05.510
Stati and the UAW are embroiled in a heated
fight that is escalating quickly.
00:05.809 --> 00:10.909
The two sides have been sparring for months
after Stonis announced plans to delay the
00:10.920 --> 00:16.399
reopening of the Belvidere Assembly plant in
Illinois over quote market conditions.
00:16.620 --> 00:21.909
The UAW contends that the move is a ploy to
kick the can past their contracts expiration
00:21.920 --> 00:26.790
date and never open the plant.
Stati insists that this is a delay,
00:27.100 --> 00:31.379
not a cancellation last Thursday, UAW members
at the automakers,
00:31.389 --> 00:37.180
Los Angeles Parts Distribution Center voted to
request strike authorization if the company and
00:37.189 --> 00:42.939
union can't come to terms while several UAW
locals have filed grievances against the
00:42.950 --> 00:47.819
company since August L A is the first to take
it to the next level.
00:48.130 --> 00:53.279
The union says Stonis has violated product and
investment commitments and threatened more
00:53.290 --> 00:58.200
strike authorization votes.
In a statement, UAW President Sean Fain said
00:58.209 --> 01:04.110
quote, Stonis has made a contractual promise to
invest in America and we are not going to let
01:04.120 --> 01:09.089
them weasel out of it last year.
The union won $19 billion in investment
01:09.099 --> 01:13.190
commitments and the ability to strike if the
company fails to keep those promises.
01:13.660 --> 01:18.089
According to the UAW.
Stonis has thus far put forward investment
01:18.099 --> 01:24.680
plans equal to only about 2% of the 19 billion
and is now publicly backtracking on plans in
01:24.690 --> 01:28.069
Belvedere and to build the Dodge Durango in
Detroit.
01:28.690 --> 01:34.589
Last week, Stan started firing back after
filing an initial lawsuit against the UAW.
01:34.599 --> 01:40.050
And local 230 in Los Angeles.
Stan filed eight additional lawsuits against
01:40.059 --> 01:42.819
the UAW and 23 local unions.
01:43.040 --> 01:49.419
The lawsuits prompted a meeting between the two
sides on Saturday during which the UAW proposed
01:49.430 --> 01:54.349
according to Stan reinstituting a concept
called the Jobs Bank,
01:54.730 --> 01:57.639
a contributing factor to the automakers
bankruptcy.
01:57.650 --> 02:04.599
In 2009, the Jobs Bank prohibited automakers
from laying off employees by the two thousands.
02:04.610 --> 02:08.149
Chrysler had more than 2000 employees in the
Jobs Bank.
02:08.250 --> 02:13.289
These were employees on the active payroll but
were not allowed to perform any production work.
02:13.300 --> 02:18.550
Stonis says the UAW is proposing a
reinstatement of the Jobs Bank not only for the
02:18.559 --> 02:23.973
employees in Belvedere, but for some 900
employees who transfer from belvedere to other
02:23.983 --> 02:28.593
locations.
Stan rejected the U Aws latest proposal because
02:28.602 --> 02:33.322
it would revert to pre bankruptcy terms and
conditions that would jeopardize the company's
02:33.332 --> 02:36.912
future.
Stan admitted that the situation in Belvedere
02:36.923 --> 02:41.912
remains quote extremely unsettling for
employees but noted that employees were placed
02:41.923 --> 02:47.246
on temporary layoffs, still earning 74 percent
of pay and full health care benefits.
02:47.255 --> 02:53.686
Stan maintains its position that any call for a
strike by the UAW would be illegal and if
02:53.695 --> 02:59.156
necessary, the company will see the litigation
through and hold the UAW responsible for lost
02:59.166 --> 03:05.565
revenue, which the automaker says could amount
to tens of millions a day in lost production.
03:05.746 --> 03:08.386
I'm David Manti.
This is manufacturing now.