UAW’s rift with Stellantis raises fear of US auto job cuts

By | 09/12/2024 12:48 PM EDT

Some union members worry the company’s CEO, Carlos Tavares, who talks frequently about cutting costs, wants to move more production to low-wage Mexico.

STERLING HEIGHTS, Michigan — To Ruth Breeden, whose job is to assemble Ram trucks in this Detroit suburb, a simmering dispute between the United Auto Workers union and Stellantis isn’t merely about whether her employer will reopen a distant factory in Illinois. To her, the standoff is a danger sign for all UAW workers.

Belvidere, Illinois, is the site of an assembly plant that Stellantis had pledged to reopen under a contract it forged last year with the union. But the company, which reported poor sales and earnings this year, has delayed the reopening given what it calls unfavorable “market conditions.” Stellantis says it will eventually meet its commitment to reopen the plant.

Yet no date has been given for the company to restart the factory or to open a new battery plant and a new parts warehouse, both which were also promised in the contract agreement that ended the UAW’s strike against Stellantis last year. At stake are about 2,700 jobs.

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Breeden and other union members say they fear that Stellantis will break other commitments in other states, eventually jeopardizing their jobs.

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