Zhixun Finance learned that the United Auto Workers (UAW) has filed a federal labor charge against the European car company Stellantis (STLA.US) with the U.S. National Labor Relations Board. Stellantis is accused of repeatedly canceling commitments that were part of the 2023 collective bargaining agreement and refusing to provide information about plans to move manufacturing out of the United States.

In order to end the unprecedented strikes against Detroit's three major car companies, Ford (F.US), General Motors (GM.US), and Stellantis previously agreed to the UAW's terms, including substantial pay increases, increased retirement benefits, and most notably, Stellantis's commitment to produce the Dodge Durango in Detroit and reopen a idle assembly plant in Belvidere, Illinois.

But due to high inventory, declining sales, and a highly profitable contract signed with the UAW that raised auto worker wages by at least 25%, Stellantis is working to cut costs, first through company-wide layoffs, and now plans to move Durango production to Windsor, Canada, and shut down the Belvidere plant.

The UAW stated that the company failed to plan, fund, and initiate these projects, violating the U.S. investment letter in the P&M and OC&E collective bargaining agreements. During the 2023 negotiations, both parties agreed to the investment plan for Belvidere to address job security concerns affecting all unit members of the systemwide negotiations. The company failed to fulfill its commitments in the U.S. investment letter, which is a serious concern for all unit members. The UAW demands that Stellantis rescind its decision, immediately plan and fund the reopening of the Belvidere plant. Failure to do so may trigger another strike against the company.

In July, the Biden administration pledged 0.334 billion dollars in federal funds to reopen the plant, but as of August, the company has continued to stall, citing the need to 'adjust market conditions and investment' and 'ensure the company's future competitiveness and sustainability'.

In addition, Stellantis denies that it violated commitments to the union, and claims the union has no reason to strike. The company stated: 'The UAW expressly agreed to allow the company to modify product investments and employment levels.'

The company stated, 'The company has notified the union that it will not launch the Belvidere Consolidated Mopar Mega Hub in 2024, nor will it commence stamping operations for the Belvidere Mega Hub in 2025, or begin production of midsize trucks in Belvidere in 2027. Therefore, the company confirms that UAW has been informed of the delay in the plans for Belvidere, but remains firmly committed to its commitments.'

However, UAW disagrees. The union states, 'We intend to enforce our contract and hold Stellantis accountable to its commitments.'