Will UAW’s Charges Over Contracts Spark Stellantis Strikes?
Published: September 19th, 2024.
United Auto Workers (UAW) President Shawn Fain announced a major escalation in the union’s ongoing dispute with Stellantis as the UAW prepares to hold strike authorization votes. This move follows the filing of federal unfair labor practice charges against the automaker, accusing Stellantis of failing to uphold crucial commitments outlined in the 2023 bargaining agreement. The charges, filed earlier this week, highlight two primary grievances: the company’s alleged plan to move Dodge Durango production from the U.S. to Canada and the delayed reopening of the Belvidere Assembly Plant in Illinois.
These complaints represent a significant escalation in what has already been a tense standoff between the union and Stellantis. Fain emphasized that these alleged actions violated the contract, resulting in the UAW's new rights to strike over product and investment commitments.
The UAW’s decision to file unfair labor practice charges has pressured Stellantis to defend its actions. The union contends that moving Durango production to Canada would “kill thousands of jobs in America,” a claim Stellantis strongly denies, asserting that no such decision has been confirmed. Additionally, the UAW alleges that Stellantis’ delayed reopening of the Belvidere plant, a key promise made during last year’s negotiations, jeopardizes more than just jobs—undermining trust in the contract process.
Stellantis’ response
Stellantis has refuted these accusations, asserting that the four-year agreement encompasses the commitments made during the 2023 negotiations, and it would be premature to anticipate the fulfillment of all promises in the first year. The company also denied confirming any plans to move Dodge Durango production, accusing Fain of making unfounded claims and damaging the company’s reputation.
“Stellantis is focused on offering consumers affordable, multi-energy vehicles while ensuring our future sustainability,” the automaker said in a statement. “A strike does not benefit anyone—our customers, our dealers, the community, and most importantly, our employees.”
Analysts warn that any potential strikes could disrupt production of high-demand vehicles, particularly Jeep SUVs, adding further strain to Stellantis’ U.S. market performance.
Impact on consumers
Should the UAW proceed with strikes, production disruptions will likely occur, especially at plants responsible for high-demand models like Jeep SUVs and Dodge trucks. Production delays would result in fewer vehicles on dealer lots, causing prices to rise due to scarcity. For those looking to purchase a new car, particularly from Stellantis brands like Jeep, Dodge, and Chrysler, this could result in limited options and inflated costs.
Stellantis’ move toward electric vehicles (EVs) may also face delays, affecting consumers' eagerness to adopt more environmentally friendly vehicles. The union has raised concerns about delayed investments in new battery plants and production lines, which are critical to Stellantis’ EV strategy.
Long-lasting strikes could also make getting aftermarket services and parts harder since the UAW's complaint also includes promises to open new parts hubs. Consumers may find it more difficult to get repairs or maintenance on vehicles built by Stellantis, increasing the frustration and financial burden on existing owners.
In the short term, consumers may face higher prices, longer wait times, and limited model options as production slowdowns ripple through Stellantis’ North American operations. Should the UAW authorize a strike, these issues could extend well into 2025, affecting buyers, dealerships, and local economies tied to auto manufacturing.