(Reuters) – Stellantis on Monday denied failing to honor its commitments with the United Auto Workers under an agreement reached in 2023, even as the union prepares for an unprecedented strike a year after a national walkout.
UAW President Shawn Fain said last week several of its union local chapters were laying the groundwork for strikes after accusing Stellantis of breaking its contract promises.
The union’s grievances center around the company’s product and investment commitments made during the contract negotiations last autumn.
The main sticking points for the UAW revolve around delays of a planned multibillion-dollar investment into a new battery plant and factory in Belvidere, Illinois and possible plans by Stellantis to move production of the Dodge Durango SUV out of the U.S.
“To be clear, Stellantis has abided, and will continue to abide, by the agreement the parties reached in 2023,” Stellantis’ North America COO Carlos Zarlenga said.
Chrysler-parent Stellantis’ North American operations have been struggling and has attracted criticism from consumers and workers who have argued the company has not done enough to invigorate demand.
(Reporting by Utkarsh Shetti in Bengaluru; Editing by Krishna Chandra Eluri)
