The United Auto Workers (UAW) union is ramping up pressure on Stellantis, announcing plans to hold strike authorization votes at local chapters of the automaker. UAW President Shawn Fain disclosed the union's plans in a speech to members on Tuesday, stating that Stellantis has failed to uphold key commitments made during the labor deal agreed upon after last year's six-week strike.
"We are 100% within our rights and within our power to take strike action if necessary," Fain said, emphasizing the union's readiness to enforce its contract and safeguard American jobs. The UAW claims Stellantis, which produces vehicles under brands like Jeep, Ram, Dodge, and Chrysler, is falling short on its investment and production promises, including a delayed multi-billion-dollar investment in a new battery plant in Belvidere, Illinois. Fain also took issue with alleged plans to move production of the Dodge Durango out of the U.S., although Stellantis has denied confirming any such move.
Stellantis, in response, has maintained that its long-term commitments to investments and job security remain intact, stating that the four-year contract allows time to meet its obligations. "It is not surprising that the commitments haven't been fully realized in the first year," the company said in a statement. Stellantis added that any outstanding issues should be resolved in negotiations rather than through public disputes or strikes, asserting that a strike would not benefit anyone, including employees, customers, or the community.
The union's move to hold strike authorization votes comes after months of escalating tensions. UAW leadership has been critical of Stellantis' handling of its product and investment promises, accusing the company of failing to fulfill commitments that were central to last year's labor agreement. One of the union's key victories in that agreement was the right to strike if job protections were violated, an unprecedented concession that now gives the UAW leverage to take action even before the contract expires.
The planned strike votes will take place at individual Stellantis local chapters, a strategic move that could avoid triggering a nationwide walkout. Labor expert Harley Shaiken, a professor at the University of California, Berkeley, described the local-by-local approach as more tactical than a blanket strike, which Stellantis could challenge in court as a contract violation. "The stakes are very high. For the union, it is a critical moment to ensure the gains it felt it has won are respected," Shaiken said.
Fain's speech came just a day after the UAW filed unfair labor practice claims with the National Labor Relations Board, accusing Stellantis of refusing to provide critical information about its future product plans. This is another flashpoint in the ongoing conflict between the automaker and the union, which represents 43,000 workers at 19 Stellantis manufacturing facilities across North America.
The potential strike poses a significant threat to Stellantis, which has already faced pressure from dealers and shareholders over rising inventories and lagging sales. "It's not every day that we auto workers are on the same side as the dealers, the same side as the suppliers, and the same side as the shareholders. But today is that day, and we are prepared to take strike action to make Stellantis keep the promise," Fain said during his address.
The UAW's grievances against Stellantis cover tens of thousands of members, with 28 local chapters filing complaints. The union alleges that roughly 98% of Stellantis' UAW membership is impacted by the company's actions, heightening the possibility of widespread disruption should a strike occur. The grievances center on the automaker's alleged failure to uphold commitments related to job security, product investment, and the maintenance of U.S. manufacturing jobs.
Stellantis, for its part, denies many of the union's claims, including accusations that it violated the contract. The company insists it is carefully managing its business and vehicle launches, while also navigating a rapidly changing auto industry, particularly the shift toward electric vehicles. In a previous statement, Stellantis defended its actions, arguing that it is focusing on ensuring long-term sustainability for both the company and its workforce.
If the strike authorization votes proceed, and the grievances remain unresolved, the UAW would be authorized to hold a strike vote within 60 days. A strike would require a majority vote from workers at the local chapters, and if approved, the UAW and Stellantis would enter a series of negotiations to resolve the issues or initiate a walkout.
