Stellantis announced the postponement of the reopening of the Belvidere assembly plant in Illinois and argued that the United Auto Workers “cannot legally strike” due to the delays. The company stated it “firmly stands by its commitment” to invest in the facility closed in February 2023 but indicated that it is not feasible at the moment. No details were provided on a new timeline for reopening.
According to agreements between the parties, UAW will not be able to strike over Stellantis’ delays in reopening the Belvidere plant
Stellantis’ statement comes after accusations from the union, which claimed that the company is slowing down its commitment to reopen the Illinois plant, where the Jeep Cherokee was produced before closing in early 2023. The union promised to challenge the delays with several complaints against the company and warned that such delays could lead workers to strike.
In the contract negotiated last autumn, the union had obtained the right to strike in case of plant closures and for issues related to the company’s product and investment commitments. UAW President Shawn Fain even raised the issue during a speech at the Democratic National Convention in Chicago, stating that Stellantis “must keep the promises made to America in our union contract” signed in 2023.
“To ensure the company’s future competitiveness and sustainability, necessary to preserve jobs in the U.S. manufacturing sector, it is essential that the business case for all investments aligns with market conditions and our ability to meet a wide range of consumer demands,” reads the statement from Stellantis sent by spokesperson Jodi Tinson.
Stellantis stated it “has not violated the commitments made in the investment letter included in the 2023 UAW collective agreement and strongly opposes the union’s accusations.” It claimed that the union had, in effect, allowed the company to modify product investments and employment levels, meaning a strike is not an option.
In the investment letter, included in the 2023 contract, Stellantis committed to investing in the Belvidere plant in several ways. It agreed to spend about $1.5 billion to retool the plant to build a new mid-size truck starting in 2027. It also committed to launching a $100 million mega parts hub in 2024. However, the letter, drafted by a Stellantis executive and approved by a UAW vice president, contains language that seems to give automotive group some flexibility in its investments in Belvidere and other plants.
The letter states: “The parties understand and agree that global and North American vehicle economies and markets remain highly volatile and, as such, continue to be unpredictable. Further unpredictability is anticipated with volumes and mix with the introduction of EV product offerings in our vehicle lineup. “Consequently,” the letter continues, “it is understood that the product investment and employment level numbers indicated above are subject to approval by the Stellantis product allocation committee and contingent on plant performance, changes in market conditions, and consumer demand that continues to generate sustainable and profitable volumes for all U.S. production facilities described above.“