The United Auto Workers (UAW) union is once again gearing up for potential strikes against Stellantis as tensions escalate over labor agreements. Formed through the 2021 merger of the Fiat Chrysler Automobiles (FCA) and the PSA Group, Stellantis produces popular brands like Chrysler, Dodge, Jeep, and Fiat. Just under one year ago, the UAW celebrated securing historic labor agreements after prolonged strikes, but now, signs indicate a possible return to labor unrest.
On September 16, 2024, the UAW took formal steps by filing a complaint with the National Labor Relations Board against Stellantis. The union contends the automaker has failed to uphold commitments made during the 2023 labor negotiations, particularly concerning U.S. investments. Central to the dispute is Stellantis' progress—or lack thereof—on reopening its idled factory located in Belvidere, Illinois, and its controversial decision to shift Dodge Durango production from Detroit to Mexico.
UAW President Shawn Fain did not mince words when discussing the grievances against Stellantis. “Stellantis wants to go back on the deal,” he stated sharply, asserting the union’s determination to enforce what was agreed upon. He hinted strongly at the possibility of going on strike to compel the company to comply with the original contract.
Stellantis, on its part, has maintained it has not violated the labor agreement. According to the company, the contract permits them to change operational strategies as needed based on market conditions and financial performance. Yet, the UAW argues Stellantis’ leadership fails to explore other options, such as cutting executive bonuses, before resorting to laying off workers and moving production abroad.
Financially, Stellantis is experiencing turbulence. The company has reported nearly 50% drops in profits within the first half of 2024, and sales have waned significantly, particularly across North America. This decline has led to job cuts, with Stellantis laying off around 2,500 workers at its Warren, Michigan plant, raising the specter of additional furloughs.
While the atmosphere remains charged between Stellantis and the UAW, the union has recently faced challenges internally as well. Under the watchful eye of federal monitor Neil Barofsky, appointed following corruption scandals within the UAW, Fain's administration is being investigated for allegations related to improper conduct. Barofsky is probing claims of retaliation against union officials and slow document releases by the UAW, keeping the spotlight firmly on the leadership.
While Stellantis has been the primary focus of UAW's recent actions, Ford, another major automaker, is also caught up in labor discussions with the union. Just days before the UAW's complaint against Stellantis, it authorized strikes against Ford's Dearborn factory, home to the iconic F-150 pickup truck, but last-minute negotiations led to the avoidance of immediate labor action.
Negotiations with Ford revolved around key issues such as job security and wage equality among skilled trades. After extensive talks, including over a year of local agreements, the two sides reached a tentative agreement just hours before potential strikes could occur.
Looking at UAW’s leadership, Shawn Fain has seen both triumphs and tribulations. Since assuming his role as UAW President in March 2023, he earned commendations for his innovative strategies—such as synchronizing negotiations with Detroit’s Big Three automakers. These efforts led to generous wage hikes and significant commitments to U.S. job stability. Fain's approach included direct communication with union members via livestream presentations, reflecting his commitment to transparency.
Despite these efforts, the shadow of government oversight looms large. The UAW’s push to organize and grow its membership is another front where the union is showing aggression. Having embarked on this campaign targeting nonunion automakers, they secured their first victory with Volkswagen's Chattanooga plant voting to join the UAW.
It’s clear the stakes are high for both Stellantis and the UAW as they engage once again on the chessboard of labor relations. The UAW’s actions, including potential strikes and grievances, indicate they are prepared to advocate fiercely for workers’ rights, which could redefine the future of labor negotiations for both automakers and their workforce. How this situation will evolve remains to be seen, and it is likely the headlines surrounding the UAW will continue to develop as negotiations intensify and workers seek to uphold the promises made just last year.
