Dispute between UAW and Stellantis escalates after union files unfair labor action over factory commitments

The dispute between the United Auto Workers union and Stellantis deepened on Monday when the union filed a lawsuit with the Federal Labor Court over the possible relocation of production of an SUV abroad.

The union said it had filed a complaint with the National Labor Relations Board, accusing Stellantis of unlawfully refusing to release information about plans to move production of the Dodge Durango from a plant in Detroit to a plant in Canada.

The union has also raised complaints about Durango and the company's delays in reopening a vehicle assembly plant in Belvidere, Illinois, and building a parts distribution center and an electric vehicle battery factory. The UAW has threatened a strike over these issues.

The union bases the allegation of unfair labor practices on media reports that the Durango is to be removed from the Jefferson North assembly plant in Detroit.

In the union's new collective agreement, the company committed to expansion in Belvidere and production in Durango. reached last autumn after a six-week strike, the UAW said.

Union President Shawn Fain said in a statement that the contract gives the UAW the right to strike over contractual obligations to build vehicles in the U.S. “Now Stellantis wants to back out of the contract,” he said. “We intend to enforce our contract and make Stellantis keep its promise.”

Stellantis denied it was violating the contract and said that like all automakers, it controls how and when it brings new vehicles to market to remain competitive. “We will communicate our plans to the UAW in due course,” the company said in a statement.

Many union members fear that if the automaker fails to keep its promise to restart the Belvidere plant, it will also fail to keep other promises in the new United Auto Workers collective agreement, which runs until April 2028. In particular, they fear that the car manufacturer could relocate its production in factories in cheaper Mexico.

Stellantis has said it still intends to reopen Belvidere and build a battery factory and spare parts warehouse there, but has had to postpone this due to unfavorable market conditions. No dates were given for the changes. More than 2,700 jobs are at stake.

The company agreed to reopen Belvidere Assembly in 2027, where it plans to build up to 100,000 midsize electric and gasoline pickup trucks annually. The parts center is also scheduled to open this year and the battery factory in 2028. In total, the company has committed to investing $18.9 billion under the contract, which runs until April 2028.

In addition, it was agreed to build gasoline and electric versions of the next generation of the Durango at Jefferson North starting in 2026.

The letter states that Stellantis and the UAW agree that investments and jobs in North America “depend on plant performance, changing market conditions and consumer demand that continues to generate sustainable and profitable (sales) volumes.”

____

This article has been corrected to change the reason for the union's unfair labor practice lawsuit. The suit was filed because the company allegedly refused to give the UAW information about a possible move of Dodge Durango production to Canada.