At Democratic Convention, UAW chief threatens to strike Stellantis over delay in reopening plant

DETROIT—- A high-profile dispute between the United Auto Workers union and Stellantis over the reopening of an Illinois factory complex has spilled over into the U.S. presidential race and could lead to a strike targeting the carmaker.

In a speech Monday night at the Democratic National Convention, union president Shawn Fain accused the company of reneging on a promise to restart a shuttered assembly plant in Belvidere, Illinois, a little more than an hour northwest of Chicago.

The union won the reopening last fall after a six-week strike at several factories owned by Jeep and Ram maker Stellantis, as well as General Motors and Ford.

“Let’s be clear. Stellantis must honor the promises it made to America in our union contract,” Fain told the crowd at the Chicago convention. “The UAW will take whatever action is necessary at Stellantis or any other corporation to stand up and hold corporate America accountable,” he said, clearly referring to the possibility of a strike.

In a statement Tuesday, Stellantis confirmed it had notified the UAW union of its plans to delay reopening the Belvidere plant, but said it stands by that commitment and “strongly opposes” the union’s accusations that it is violating the terms of its contract with the UAW.

“The UAW has agreed to a provision that expressly allows the company to modify product investments and staffing levels,” spokeswoman Jodi Tinson said in a prepared statement. “As such, the union cannot legally strike at this time due to violations of this letter.”

Stellantis said it was critical to develop a business case for all investments that meets market conditions “to ensure the future competitiveness and sustainability of the company, which is essential to preserving American manufacturing jobs.”

In a complaint filed against the company, the UAW said Stellantis said it would not open a parts distribution center in Belvidere this year, would not resume metal stamping operations there in 2025 and had no plans to begin midsize truck production at the Belvidere plant in 2027.

The union said the delays violate the 2023 agreement and could extend into 2028, after the current agreement expires. “The union demands that the company reverse the decision to delay the aforementioned launches and immediately lay the groundwork for and finance investments in Belvidere,” the union’s complaint reads.

Fain has slammed Stellantis CEO Carlos Tavares for threatening layoffs amid a slump in the company’s U.S. sales this year.

American-European carmaker Stellantis said its net profit halved in the first six months of the year, mainly due to lower sales and restructuring costs.

The carmaker, which was formed in 2021 by the merger of Fiat-Chrysler with PSA Peugeot, reported net profit of 5.6 billion euros ($6 billion) in the period, down 48% from 11 billion euros in the same period last year. Revenue in the period fell 14% to 85 billion euros.

Fain, wearing a red T-shirt with the words “Trump is a scab. Vote Harris,” said at the convention that the union won strong contracts and the reopening of the plant with the support of Vice President Kamala Harris and President Joe Biden.

“Strikebreaker” is a derogatory term for workers who cross union picket lines and work during a strike.

A message seeking comment was sent to the Trump campaign on Tuesday.