UAW union files unfair labor practice charges against automaker Stellantis

By Nora Eckert

DETROIT (Reuters) - The United Auto Workers union said on Monday it had filed unfair labor practice charges against Chrysler-parent Stellantis (NYSE:STLA ) for violating the labor contract the parties reached last fall.

The UAW said it filed charges with the National Labor Relations Board because Stellantis has refused to provide information about its future product plans.

Several local chapters of the union have also filed contract grievances regarding the company's alleged attempts to move production of the Dodge Durango out of the United States, the union said in a release.

Stellantis said the automaker has not yet received the filing to review, but said the company has not violated the investment commitments it made in the 2023 contract.

"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," the company said.

UAW president Shawn Fain has publicly targeted Stellantis' CEO Carlos Tavares, blaming him for what Fain has called "mismanagement" of the automaker as its sales and profits fall, prompting layoffs and manufacturing cutbacks that have affected union members.

"As a united UAW, we intend to enforce our contract, and to make Stellantis keep the promise," Fain said in a statement.

Fain has highlighted Stellantis' delays around a planned billion-dollar investment into a new battery plant and factory in Belvidere, Illinois as another sign that it is breaking the promises it made in the labor deal signed last year.

The UAW said in August it was prepared to launch a nationwide strike over this and other issues at Stellantis. Stellantis has previously said it is not in violation of the UAW's national contract.

It has been one year since the union conducted its first strike against all of the Big Three automakers: Stellantis, Ford Motor (NYSE:F ) and General Motors (NYSE:GM ).

After a six-week walkout, the union won record contracts which included the return of cost-of-living adjustments to protect against inflation, and a 25% general wage increase.

The union also fought for its future as the industry shifts to producing electric vehicles, aiming to secure jobs at EV manufacturing and battery plants such as the ones in Belvidere.

Since the contracts were reached, Stellantis has laid off some members of its factory workforce to cut costs, drawing ire from union officials.



Fain will address the UAW membership in a livestream Tuesday at 7 p.m. ET, the UAW said.

Stellantis has also fielded criticism in recent weeks from its dealers and shareholders who cited similar concerns about rising inventories and lagging sales.

Source: Investing.com