UAW Poised for New Strikes Against Stellantis Amid Court-Monitor Turmoil

The United Auto Workers (UAW) is poised to initiate strikes that may disrupt Stellantis operations in the U.S. Stellantis, an international automaker established in 2021, produces several well-known vehicle brands, including Chrysler, Dodge, Fiat, and Jeep.

This potential action comes less than a year after the UAW secured historic labor deals with Detroit’s major automakers following extensive strikes involving thousands of its members.

Marick Masters, a labor scholar at Wayne State University, provided insights into the union’s current tensions with Stellantis. On September 16, 2024, the UAW lodged a complaint with the National Labor Relations Board, alleging Stellantis failed to uphold commitments made in their 2023 labor agreement.

The UAW’s key grievances include delayed efforts to reopen the Belvidere, Illinois factory and plans to relocate the production of Dodge Durango SUVs from Detroit to Mexico. UAW President Shawn Fain emphasized the union’s intent to enforce the contract, suggesting that a strike may materialize if necessary.

In response, Stellantis has denied any violations of the labor agreement, asserting that the contract allows for adjustments based on market conditions and financial performance. The company’s profits saw a dramatic decline, nearly 50% in the first half of 2024, contributing to recent layoffs affecting approximately 2,500 workers in Michigan.

The UAW contends that Stellantis could prioritize keeping jobs over financial cutbacks, particularly for high-paid executives.

Meanwhile, Ford was also in negotiations with the UAW. On September 26, 2024, the UAW had authorized a strike involving around 500 workers at Ford’s Dearborn factory, primarily impacting F-150 production. However, a tentative agreement reached on September 25, 2024, alleviated strike concerns, focusing on job security, outsourcing, and wage parity issues.

Fain’s leadership since March 2023 has received praise, particularly for his innovative approach during the negotiations with Detroit’s “Big Three” automakers, which led to significant wage increases and promises of job stability. His accessibility to union members through livestreamed updates has helped strengthen communication.

However, challenges persist. Fain operates under strict oversight by Neil Barofsky, the federal monitor appointed after a corruption settlement in 2020. Allegations of retaliatory actions against union officials and slow document releases are currently under investigation.

The UAW’s efforts to organize nonunion plants have had mixed results. While Volkswagen workers in Tennessee voted to join the UAW in April 2024, the union faced a setback in May when workers at Mercedes-Benz plants in Alabama voted against representation.

In the political arena, the UAW has endorsed President Biden and Vice President Harris for the upcoming elections, driven by commitments for a union-friendly electric vehicle transition. However, recent polling indicates that not all union members support the Democratic ticket, with some favoring Trump or expressing dissatisfaction with Biden’s policies.

Notwithstanding these divisions, Fain remains optimistic about the UAW’s electoral influence in Michigan, asserting that mobilization efforts will be crucial as the election approaches.