Stellantis (STLA.US) fails to meet 2023 agreement terms, facing UAW lawsuit for violating US labor laws.

The United Auto Workers (UAW) has filed federal labor charges against European carmaker Stellantis (STLA.US) with the National Labor Relations Board. Stellantis has been accused multiple times of reneging on commitments that were part of the 2023 collective bargaining agreement and refusing to provide information about plans to move manufacturing out of the United States. To end unprecedented strikes against the Detroit Big Three automakers, Ford (F.US), General Motors Company (GM.US), and Stellantis had previously agreed to terms with the UAW, including significant pay raises and increased retirement benefits. Stellantis had promised to produce the Dodge Durango in Detroit and reopen a dormant assembly plant in Belvidere, Illinois. However, due to high inventory levels, declining sales, and a lucrative contract signed with the UAW that raised auto workers' wages by at least 25%, Stellantis is now trying to cut costs. This includes company-wide layoffs and plans to move production of the Durango to Windsor, Canada, and close the Belvidere plant. The UAW statement claims that the company failed to plan, fund, and initiate these projects, violating the American Investment Letter in the P&M and OC&E collective bargaining agreements. Both parties had agreed to an investment plan for Belvidere during the 2023 negotiations to address job security concerns for all bargaining unit members. The company's failure to fulfill its commitments in the American Investment Letter is a serious concern for all bargaining unit members. The UAW is demanding that Stellantis reverse its decision, immediately plan and fund the reopening of the Belvidere plant. Failure to do so may lead to another strike against the company. In July, the Biden administration pledged $334 million in federal funds to reopen the plant, but as of August, the company has continued to stall citing the need to "adjust market conditions and investments" to ensure the company's future competitiveness and sustainability. Additionally, Stellantis denies that it has violated commitments to the union and says there is no reason for a strike. The company stated, "The UAW agreed to language explicitly allowing the company to adjust product investments and employment levels." The company declared, "The company has informed the union that it will not launch the Belvidere Consolidated Mopar Mega Hub in 2024, nor will it begin stamping operations for the Belvidere Mega Hub in 2025, or begin production of mid-size trucks in Belvidere in 2027. Therefore, the company confirms it has informed the UAW that the plans for Belvidere will be delayed, but we remain steadfast in honoring our commitments." However, the UAW disagrees. The union stated, "We intend to enforce our contract and hold Stellantis accountable for their commitments."