UAW Files NLRB Complaint Against Stellantis Over Alleged Contract Violations, Says It Intends To Make The Carmaker 'Keep The Promise' (Updated)

Author: Anan Ashraf | September 17, 2024 06:20am

Editor’s Note: This story has been updated with a statement from Stellantis.

The United Auto Workers (UAW) union said on Monday that it filed federal unfair labor practice charges at the National Labor Relations Board (NLRB) against Stellantis NV (NYSE:STLA) for alleged violation of the labor contract entered into last year.

What Happened: The union alleges that it is illegal for the automaker to refuse to provide information about the company’s plans regarding product commitments it made last year.

Several local chapters of the union have also filed contract grievances over the company’s alleged attempts to move the production of the Dodge Durango out of the United States, the union said while adding that over a dozen local unions have also filed grievances against the company’s attempt to not open the Belvidere Assembly plant.

"In our 2023 contract, we won major gains, including a commitment to reopen an idled assembly plant in Belvidere, Illinois, and to build the Dodge Durango in Detroit. We also won the right to strike over those commitments, if we have to," said UAW President Shawn Fain.

"Now, Stellantis wants to go back on the deal. As a united UAW, we intend to enforce our contract, and to make Stellantis keep the promise."

Why It Matters: UAW won the 2023 contract after a multi-week simultaneous strike against Stellantis, Ford Motor Co, and General Motors last year. The contract included a 25% pay hike and better retirement benefits, amongst other provisions.

Stellantis told Benzinga in a statement that the company has not received the filing and hence has not had the opportunity to review the charge.

“The Company has not violated the commitments made in the Investment Letter included in the 2023 UAW Collective Bargaining Agreement. Like all of our competitors, Stellantis is attempting to carefully manage how and when we bring new vehicles to market with a focus on enhancing our competitiveness and ensuring our future sustainability and growth. We will communicate our plans to the UAW at the appropriate time,” it added.

Check out more of Benzinga’s Future Of Mobility coverage by following this link.

Read Next:

• SpaceX CEO Elon Musk Says Canadian Government Is Funding Starlink Rival For Satellite Internet Despite His Offer To Do It For ‘Less Than Half That Amount’ As It Wants Its ‘Own System’

Photo courtesy: Stellantis

Posted In: STLA