United Auto Workers at Stellantis could strike over Illinois plant reopening

The United Auto Workers union announced on Monday a number of its local units representing workers at Stellantis are preparing to file grievances and could launch a nationwide strike in the U.S., saying the automaker is not honouring production commitments.

The UAW said the locals represent tens of thousands of workers and the dispute is over agreements the union said Stellantis made in 2023 as part of a new labour agreement.

Chrysler-parent Stellantis agreed to build a new $3.2-billion battery plant and invest $1.5 billion in a new mid-size truck factory in Belvidere, Il., and add 5,000 total U.S. jobs by 2028 as part of a new contract deal, the UAW said in November 2023.

Stellantis did not immediately respond to requests for comment. The UAW said the automaker would not launch the Illinois investments on the previously agreed timetable, without specifying the dates.

It is not immediately clear how a strike would impact operations in Canada. 

Last month, the U.S. Energy Department said it planned to award Stellantis $334.8 million to convert the shuttered Belvidere Assembly plant to build EVs and $250 million to convert its Indiana Transmission Plant in Kokomo to produce EV components.

The UAW said since 2023 "the company has gone back on its product commitments at Belvidere, and has been unreceptive in talks with the union to stay on track." The UAW added "this glaring violation of the contract imperils all of the other investment commitments the company has made."