The United States auto industry is continuing to be unsettled by the now well-known affair involving Stellantis and the UAW union. The two realities are accusing each other on a number of issues, particularly focusing on commitments that the auto company allegedly made during the contractual phase but which are currently not being met. A primary one is the investments for the U.S. plants, which at the moment have not yet been made by Stellantis. The situation is constantly evolving, and the real risk of a strike seems to have arrived. We are talking about one of the Stellantis plants located in Los Angeles.
UAW Vs. Stellantis, recap relentless challenge
As we discussed on previous occasions, in the latest events United Auto Workers union organized a rally for its workers inside Stellantis. Subsequent to this occurrence, the automotive group has wanted to reiterate its completely official position regarding the numerous accusations from the union, particularly from its president Shawn Fain. It was precisely Fain, in fact, who believes that Stellantis has been disseminating completely incorrect information to its employees, especially regarding the situation at the Belvidere plant.
It is specifically for the Belvidere plant that Stellantis has made it clear several times that strategic plans have been obligatorily postponed. However, this does not mean that they have been cancelled altogether, contrary to what Fain believes. In fact, such a decision by the automotive group would be perfectly in line with the agreements that were previously signed, which were correctly specified in “Letter 311.” Stellantis also reiterated that they will maintain the investment commitment for the United States when the market gives an opportunity to proceed. Therefore, numerous new jobs for Americans will also be created when the time is right.
A parts plant in Los Angeles authorizes strike action
As we already know, last week Fain drafted a letter addressed to Stellantis workers, in which they were specifically asked to agree to a possible strike so that things could really change. So, as a result of this matter, the UAW union itself officially announced that the workers at the Stellantis parts distribution center – which is located in Los Angeles – have authorized a strike. Therefore, if the company does not come to resolve the disputes regarding investment in the United States, the workers will soon be ready to strike.
Accusations by the union against Stellantis, relate specifically to commitments the auto company allegedly made in contract negotiations during 2023. Also the focus is about investments that are lagging behind. By the time Fain wrote the letter urging his workers to go on strike, it was confirmed in exactly one place in the letter that Stellantis would be breaking its promises. For this very reason in Los Angeles the workers confirmed their willingness to strike. Of course, Stellantis denied these allegations, as explained above. In addition, the stalemate in the market, and the resulting increase in dealer inventories, may make this situation less burdensome for the company for the time being.