UAW warns Stellantis (STLA.US): Failure to comply with labor agreement will result in strike action.

The relationship between automaker Stellantis (STLA.US) and the United Auto Workers (UAW) union is becoming increasingly tense. UAW president Shawn Fain recently stated that the union plans to hold a strike authorization vote because Stellantis has not fulfilled its commitments made in the labor agreement signed last year. Specifically, Fain stated that the UAW is prepared to hold strike authorization votes at one or more Stellantis factories, and if the automaker does not meet the union's demands, workers will go on strike. Fain said, "If necessary, we have the full right and ability to take strike action." He added, "We are prepared to take strike action to hold Stellantis accountable." Fain insisted that Stellantis plans to move production of the Dodge Durango from the Detroit Jefferson Assembly Plant to the Windsor Assembly Plant in Ontario, Canada, reducing job opportunities in the United States, which openly violates the new labor contract. Stellantis has denied any plans regarding the Durango and expressed a desire for forward-looking dialogue. Meanwhile, the company's CEO Carlos Tavares painted a bleak picture of the entire automotive industry in Europe. He warned that Stellantis and its peers are in a survival mode. Tavares said, "We are not afraid. We cannot complain, cannot hesitate, we have to concentrate to survive. In order to survive, we need to achieve cost parity between electric and thermal cars, but another chapter is opening. We operate in a geographically messy region, making it difficult to predict. Governments have decided to reduce purchase incentives, hindering market development." As of the time of writing, Stellantis is up 0.99% in pre-market trading. The stock has dropped more than 35% so far this year.