The United Auto Workers (UAW) union is alleging Stellantis has backtracked on production commitments in the U.S., after the union said it learned the automaker plans to shift Dodge Durango production to Canada, contradicting terms agreed upon in the 2023 collective bargaining agreement.
The union filed federal unfair labor practice charges with the National Labor Relations Board, accusing Stellantis of illegally withholding information about its future product commitments. Additionally, multiple UAW locals representing thousands of members have launched contract grievances over these alleged breaches.
On Sept. 17, UAW President Shawn Fain during a livestreamed address announced plans to conduct strike authorization votes among local union representatives, asserting that Stellantis has failed to uphold guarantees made in a labor deal struck in 2023.
“We will stand united to enforce our contract and save American jobs,” Fain said.
Stellantis, however, denied the reported production relocation plans and said it has several years remaining to implement the terms of the contract signed last year.
“The commitments we made during 2023 negotiations span the life of the 4-year, 7 ½-month agreement, so it is not surprising that they haven't been fully realized in the first year,” Stellantis said in a statement released after Fain’s address. “And to be clear, Shawn Fain’s claim that the company has confirmed plans for the Dodge Durango is simply not true. The company has confirmed no such thing.”
Stellantis said Fain has provided no evidence to support his claims that the automaker has violated its contract with the UAW.
“We would all be better served if these issues were addressed across the table with productive, respectful and forward-looking dialogue. A strike does not benefit anyone -- our customers, our dealers, the community and, most importantly, our employees," the statement concluded.
With 43,000 UAW members across 19 manufacturing facilities, the impact of even a limited strike could ripple through Stellantis's operations. The union's prior agreements typically prohibited strikes during the life of a contract, but the recent amendments provide new leverage for workers.
During the livestream, Fain directed criticism at Stellantis CEO Carlos Tavares, asserting that the executive, rather than market conditions, is the source of ongoing issues.
“We aren’t the problem. The market isn’t the problem. Carlos Tavares is the problem,” Fain said.
