The bitter UAW-Stellantis feud is taking a surprising new turn

During his speech at the Democratic National Convention, United Auto Workers President Shawn Fain used the unique opportunity to praise Democratic presidential candidate Kamala Harris and her running mate Tim Walz and address a key issue affecting the union he lead.

In front of millions of viewers, Fain took the opportunity to remind Stellantis (STLA) of the provisions of their flagship contract which was signed in November 2023; a promise to reopen the shuttered Belvedere Assembly Plant in Belvedere, Illinois.

Related: Shawn Fain’s DNC speech was a vicious wake-up call for the Detroit automaker

“But a year later, a company (Stellantis) wants to renege on our contract commitments,” Fain told the DNC crowd.

“Let me be clear: Stellantis must keep the promises it made to America in our union contract. And the UAW will take whatever action is necessary to make Stellantis or any other corporation stand up and hold them accountable American corporations”.

Stellantis Detroit Assembly Complex

Bill Pugliano/Getty Images

UAW bites back at Stellantis

Following Fain’s explosive speech at the DNC, which called out Stellantis in front of millions of prime-time viewers, the UAW filed unfair practice charges with the National Labor Relations Board (NLRB) on September 16.

The basis of the charges stem from what it calls Stellantis’ “unlawful refusal to provide information about the company’s plans regarding the product commitments it made in the UAW’s 2023 collective bargaining agreement.”

The union says several local sectors representing thousands of Stellantis workers have filed complaints with the automaker over plans to move production of the Dodge Durango SUV overseas. The Dodge heavyweight is currently built at Stellantis’ Detroit Assembly Complex alongside its stablemate, the Jeep Grand Cherokee.

“In our 2023 contract, we made major wins, including a commitment to reopen a dormant assembly plant in Belvidere, Illinois and build the Dodge Durango in Detroit. We have also earned the right to strike those commitments if necessary,” Fain said in a Sept. 16 statement. “Now, Stellantis wants to return to the agreement. As a united UAW, we intend to enforce our contract and make Stellantis keep his promise.”

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The new complaints follow grievances filed by UAW chapters against Stellantis, which accused the automaker of falling behind on its commitment to build brand-new, multibillion-dollar facilities at the idled Belvedere Assembly Plant; a move that will bring an additional 5,000 jobs.

“The company has informed the Union that it will not launch the Belvidere Consolidated Mopar Mega Hub in 2024, will not begin stamping operations for the Belvidere Mega Hub in 2025, and will not begin production of a midsize truck in Belvidere in 2027,” the UAW wrote in the proposed complaint.

“The company’s failure to plan, finance and launch these programs constitutes a violation of the US investment letter in the P&M and OC&E Collective Bargaining Agreements.”

Related: VW braces for latest UAW labor battle

According to a document outlining the UAW’s 2023 agreement with Stellantis, the automaker agreed to spend $1.5 billion to improve the Detroit Assembly Complex as part of a $19 billion improvement schedule in the various its production plants. Critically, it also stated that the current generation Dodge Durango would continue until 2025, followed by gas and electric versions of the next iteration of the Durango in 2026.

In a statement, Stellantis says it has received no notice of any grievance and emphasizes that they are not behind on its historic 2023 collective bargaining agreement with the UAW.

“Like all of our competitors, Stellantis seeks to carefully manage how and when we bring new vehicles to market with a focus on increasing our competitiveness and ensuring our sustainability and future growth,” the automaker said in a statement to Automotive News . “We will communicate our plans to the UAW at the appropriate time.”

Carlos Tavares, executive director of Stellantis NV

Bloomberg/Getty Images

Problems at Stellantis

Shortly after the earnings call, the parent company of Dodge, Chrysler, Jeep and Ram began cutting jobs in key parts of its operations, offering voluntary buyout packages to white-collar workers and massive layoffs that drew attention of JD Vance.

As a multinational car manufacturer, Stellantis’ troubles are not limited to situations arising in the United States.

According to a recent Reuters report, CEO Carlos Tavares said the automaker is working hard to take steps to help it avoid closing one of its car plants. Currently, other European automakers such as Volkswagen are feeling the heat amid rising cars from brands like BYD and rising labor costs in Europe.

“We are working very, very hard to avoid this situation and the future will tell whether we can avoid any trouble or not, too early to tell today,” Tavares said.

Stellantis NV, which trades on the New York Stock Exchange as STLA, is down 0.33% from the opening bell, trading at $15.14 at the time of writing.

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