UAW Files Unfair Labor Charges Against Stellantis Over Alleged Contract Violations

The United Auto Workers (UAW) union filed unfair labor practice charges against Stellantis, claiming the automaker violated their 2023 labor contract by withholding information about future product plans and attempting to relocate Dodge Durango production outside the U.S. Stellantis denies the allegations.

UAW Files Labor Charges Against Stellantis Over Alleged Contract Violations and Production Shifts

On September 16, the United Auto Workers union announced that it had filed unfair labor practice charges against Stellantis, Chrysler's parent company, for violating the contract concluded between the parties last autumn, per Reuters.

The UAW stated that it lodged charges with the National Labor Relations Board because Stellantis refused to disclose information regarding its future product plans.

The union also stated in a release that numerous local chapters have submitted contract grievances against the company for allegedly attempting to relocate the production of the Dodge Durango outside of the United States.

According to Stellantis, the automaker still needs to receive the filing for review. However, the company has kept the investment commitments it made in the 2023 contract.

"Like all of our competitors, Stellantis is attempting to carefully manage how and when we bring new vehicles to market with a focus on enhancing our competitiveness and ensuring our future sustainability and growth. We will communicate our plans to the UAW at the appropriate time," the company said.

Shawn Fain, the United Auto Workers (UAW) president, has publicly criticized Carlos Tavares, the CEO of Stellantis, for what he called the automaker's "mismanagement." This has resulted in redundancies and manufacturing reductions that have impacted union members and declined sales and profits.

"As a united UAW, we intend to enforce our contract, and to make Stellantis keep the promise," Fain said in a statement.

Fain has emphasized Stellantis' delays in developing a billion-dollar battery facility and factory in Belvidere, Illinois, as an additional indication that the company is not adhering to the terms of the labor agreement it signed last year.

UAW Prepares for Potential Strike as Tensions Rise Over Stellantis Contract Disputes and Layoffs

In August, the UAW declared its readiness to initiate a nationwide strike in response to this and other concerns at Stellantis. Stellantis has previously stated that it does not violate the UAW's national contract.

The union's inaugural strike against all three Big Three automakers—Stellantis, Ford Motor, and General Motors—was executed one year ago.

After a six-week walkout, the union secured record contracts. These contracts included a 25% general wage increase and the return of cost-of-living adjustments to guard against inflation.

The union fought for its future as the industry started producing electric vehicles to secure employment at EV manufacturing and battery facilities like Belvidere.

Since the contracts were signed, Stellantis has laid off a portion of its factory personnel to reduce costs, which has prompted criticism from union officials.

The UAW has announced that Fain will deliver a simulcast to the UAW membership on September 17 at 7 p.m. ET.

Stellantis has also been criticized in recent weeks by its dealers and shareholders, who expressed similar concerns regarding the company's lagging sales and increasing inventories.