UAW threatens strike, alleges Stellantis is going back on commitments

The United Auto Workers union said several UAW locals are prepared to file grievances against Stellantis and could strike if necessary over "the company’s failure to keep its investment commitments and honor the union contract."

It comes several days after UAW President Shawn Fain targeted Stellantis and its CEO, Carlos Tavares, on Friday, saying sales are down, profits are down, and the CEO pay is up.

After the union's historic Stand Up Strike last year, the union negotiated a right to strike over plant closings, outsourcing of jobs and product & investment commitments.

WATCH BELOW: UAW details agreement with Stellantis after 2023 Stand Up Strike

Earlier this month, Stellantis had warned the union it could lay off thousands of worker employed at the Stellantis Warren Truck Plant, which builds an older version of the Ram 1500 pickup truck.

“This company made a commitment to autoworkers at Stellantis in our union contract, and we intend to enforce that contract to the full extent," Fain said on Monday afternoon. “On behalf of autoworkers everywhere, we’re standing up against a company that wants to go back on its commitments and drive a race to the bottom at the expense of the American worker.”

The union said that the company is going back on its product commitments to reopen the Belvidere Assembly.

According to the union, the locals that may file grievances include UAW Local 12 at Toledo Assembly, Local 140 at the Warren Truck Plant, Local 1700 at Sterling Heights Assembly, Local 7 at the Detroit Jefferson Assembly Complex, Local 51 at the Mack Assembly Complex and two locals in Kokomo, Indiana.

Stellantis released a statement on Tuesday morning in response to the threat from the union. It 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."