Stellantis confirmed Tuesday that it intends to delay — but not cancel — plans for the reopening of the Belvidere Assembly Plant, and said in a statement that the UAW cannot strike over the issue.
The statement came the day after the UAW suggested it might launch a national strike against the owner of the Jeep, Ram, Chrysler, Dodge and Fiat brands and followed UAW President Shawn Fain’s rousing address at the Democratic National Convention where he blasted the automaker, which denied that it had violated its commitments.
Stellantis, which has seen its U.S. sales and profits slide this year, pointed to market conditions in its explanation, saying that “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.”
Fain, in a video address last week, asserted that the issues at Stellantis are the fault of CEO Carlos Tavares and are not related to the market, pointing to Ford Motor Co. and General Motors, which have not seen the same down sales results.
The commitments for Belvidere, which include a midsize pickup launch and a mega parts hub, stem from last year’s collective bargaining agreement between the union and automaker and the union’s targeted strike against Stellantis, Ford and GM. The fate of Belvidere was a major sticking point in the talks, and the agreement to reopen the idled assembly plant, which formerly produced the Jeep Cherokee, had been seen as a major union win.
Stellantis, however, rejected the claim the company has violated its commitments.
“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,” according to the statement provided by spokeswoman Jodi Tinson.
The automaker and union presented conflicting depictions of the company’s approach. The company said that “as always, the company is committed to engaging with the union on a productive, respectful and forward-looking dialogue.” The union said that “since ratification, the company has gone back on its product commitments at Belvidere, and has been unreceptive in talks with the union to stay on track.”
The union said Monday that UAW locals representing tens of thousands of workers at its plants in Detroit, Toledo and elsewhere are preparing grievances over the situation and that a strike could be authorized after the issue follows the grievance process.
Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber. Submit a letter to the editor at freep.com/letters.
This article originally appeared on Detroit Free Press: Stellantis will delay Belvidere Assembly Plant reopening plans
