A growing rift between the United Auto Workers (UAW) union and Stellantis, a major automaker, is sparking concerns that some US auto jobs may be at risk.
The conflict centers around the company’s delayed reopening of the Belvidere Assembly Plant in Illinois, which Stellantis had promised to revive in a 2023 contract. This plant closure, along with the uncertainty surrounding the creation of new facilities, has left thousands of workers apprehensive about their future.
Workers like Ruth Breeden, who assembles Ram trucks in Sterling Heights, Michigan, view the delay as a potential warning sign for all UAW employees. Breeden and other workers fear that Stellantis might not follow through on its broader commitments, which could lead to further job cuts or even plant closures in other locations. The closure of Belvidere, which once employed 1,350 workers, is particularly concerning, as no date has been given for its reopening, nor for the launch of new battery and parts warehouses that were part of the company’s agreement with the union.
Stellantis cites “market conditions” as the reason for the delay and insists it remains committed to reopening the Illinois plant and meeting other contractual obligations. However, union leaders argue that the company’s actions signal a deeper problem, one that may lead to production shifts to lower-wage countries like Mexico, where Stellantis already builds some vehicles. UAW President Shawn Fain has expressed concern that the company’s cost-cutting measures may prioritize profits over American jobs.
The dispute comes at a time of broader industry challenges, as automakers navigate the shift to electric vehicles (EVs), which are more expensive to produce than traditional gas-powered cars. Stellantis CEO Carlos Tavares has emphasized the need to reduce costs to make EVs affordable for consumers. The company’s US sales and profits have also fallen in recent months, contributing to concerns about its future investment in US operations.
The Belvidere plant has become a focal point of the union’s concerns, with some experts suggesting the matter could eventually end up in court. The ongoing tension has led to fears of a potential strike, which could impact not only Stellantis but also its competitors, Ford and General Motors, as they monitor the situation and weigh their own strategies for future production.
The Associated Press, FOX2, WXYZ, Detroit Free Press contributed to this report.
