UAW Strike Threat Looms as Stellantis Faces Backlash for Stock Buybacks and Broken Promises

Logo of the UAWPhoto byUnited Auto Workers

The UAW escalates its fight against Stellantis for breaching its U.S. investment commitments, as workers push back with strike votes amid company buybacks.

Denver Workers Join Growing UAW Strike Authorization Push Against Stellantis

In a bold move, UAW Local 186 members in Commerce City, Colorado, overwhelmingly voted 97% in favor of authorizing a strike against Stellantis, signaling a growing dissatisfaction within the union over the automaker's failure to meet its contractual investment commitments. This makes the Denver parts distribution workers the second UAW local to approve strike authorization in response to what the union describes as broken promises. The Los Angeles local passed a similar vote just last week.

The trigger for these strike votes is Stellantis' diversion from its promised $19 billion investment in U.S. operations, a key victory in the UAW’s 2023 contract negotiations. Instead, the company has funneled more than $1.1 billion into stock buybacks over the past two months, raising alarms within the union ranks. Stellantis has also publicly backed away from reopening its Belvidere, Illinois plant and has yet to follow through on plans to build the Dodge Durango in Detroit.

$1.1 Billion in Buybacks Sparks Union Outrage

Instead of honoring its investment pledges, Stellantis has committed billions to stock buybacks, with an expected total of $3.3 billion allocated for buybacks in 2024. This financial strategy, meant to boost shareholder value, has become a rallying point for the UAW, which views the actions as a betrayal of the company's workforce.

UAW leadership has been vocal, pointing out that Stellantis' buybacks come at the expense of U.S. jobs, while workers continue to fight for the company to deliver on promises for future investment in domestic operations. The failure to fulfill these pledges has prompted UAW locals across the country to explore strike options. The union's 2023 contract grants the right to strike if Stellantis does not meet its investment commitments, giving the union powerful leverage in this escalating conflict.

Stellantis' PR Campaign and Legal Maneuvers Backfire

In response to the union's push for strike authorizations, Stellantis has launched a public relations campaign aimed at undermining the strike efforts. Robocalls were sent to tens of thousands of UAW members, urging them to reject strike authorizations. However, this effort appears to have backfired, as seen by the overwhelming vote results in both Los Angeles and Denver.

Additionally, Stellantis has resorted to legal tactics, filing federal suits in an attempt to block the union from utilizing its contractual strike rights. Despite these aggressive maneuvers, UAW members remain firm, with many locals showing readiness to authorize strikes if the automaker continues its current path.

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