- Stellantis is facing escalating tensions as UAW threatens to reintroduce the Jobs Bank policy.
- Under this policy, the Detroit carmaker would be prohibited from laying off employees.
- The company has delayed investments at its Belvidere plant but remains committed to them.
Stellantis has escalated its conflict with the United Auto Workers (UAW), filing no less than eight new lawsuits against the union and 23 of its local chapters. The lawsuits focus on what Stellantis claims are threats from union representatives to initiate strikes, in response to the automaker’s delay in making planned investments at its Belvidere, Illinois, plant.
The auto manufacturer states that over the weekend, it met with UAW officials who proposed reviving a concept known as the Jobs Bank—an idea Stellantis argues was a significant factor in Chrysler’s 2009 bankruptcy. This Jobs Bank generally prevents Detroit automakers from laying off workers, even when no work is available.
Read: Stellantis Staff Told To Slash Spending As ‘Doghouse’ Policy Returns
According to Stellantis, Chrysler had over 2,000 employees in this program, who remained on the payroll but were not allowed to contribute to production prior to the bankruptcy. Stellantis claims the UAW is now pushing to establish a similar Jobs Bank for all Belvidere employees, along with 900 workers who were transferred from the shuttered plant to other locations.
Delayed Investments at Belvidere
In 2023, Stellantis agreed to invest $1.5 billion in its shuttered Belvidere plant to build new mid-size trucks by 2027. The company has delayed some of these investments because of economic conditions but “has repeatedly stated that the plans for Belvidere have been delayed – not cancelled.” It contends that any call for a strike by the UAW is illegal and notes that employees waiting for work to resume in Belvidere are receiving 74% of their full pay and all healthcare benefits.
UAW president Shawn Fain says it is “gross mismanagement by top executives that is killing this company,” and denied the claim from Stellantis that the “Jobs Bank caused the bankruptcy.” He added the UAW is “asking that Stellantis keep their contractual commitments and do right by Belvidere autoworkers and autoworkers across the country.”
Escalating Strike Threats
Stellantis has filed its lawsuits across multiple states, including Michigan, Ohio, Indiana, Texas, Arizona, Massachusetts, and Oregon, according to reports from Reuters.
Meanwhile, tensions are rising among UAW members at other Stellantis facilities. Workers at the company’s Los Angeles parts distribution center recently voted to request strike authorization if Stellantis fails to resolve disputes over its planned investments.
Similarly, employees at the Denver parts distribution center voted in favor of strike authorization, adding more pressure on the automaker to settle these grievances before broader action is taken.
