UAW urges Stellantis workers to authorize strike, accuses auto maker of breaching contract Reuters

(Reuters) – The United Auto Workers union has asked workers at Stellantis (NYSE: ) to authorize a strike, accusing the Franco-Italian carmaker of breaking its contract promises, UAW President Shawn Fain said in a letter to US union chapters on Friday.

“We unanimously recommend to the membership that every UAW worker at Stellantis prepare for a fight, and we are all preparing to vote YES to authorize a strike at Stellantis,” Fain wrote in the letter, which the UAW distributed in a Facebook post (NASDAQ). :).

The union’s grievances center around Stellantis’ product and investment commitments made during contract negotiations last fall.

“We have reviewed the serious breaches of our contract and patterns of illegal behavior on the part of Stellantis. The evidence is clear that CEO Carlos Tavares is steering Stellantis on an abusive course that will cause immense harm to our members,” Friday’s letter added.

Stellantis did not immediately respond to a Reuters request for comment. However, Stellantis has previously denied that it has failed to honor its commitments with the UAW, with North American Chief Operating Officer Carlos Zarlenga saying the company has “honored and will continue to honor the agreement reached by the parties in 2023.”

The North American operations of Chrysler parent Stellantis have struggled and drawn criticism from consumers and workers who said it did not do enough to boost demand.

The main sticking points for the UAW relate to delays in a planned multibillion-dollar investment in a new plant and battery plant in Belvidere, Illinois, and possible plans by Stellantis to move production of the Dodge Durango SUV out of the United States.

Fain said earlier this month that several of the union’s local chapters were laying the groundwork for strikes.

Tavares said he is focused on improving Stellantis’ performance in the US and has said he is willing to close the brands globally if they don’t make money.