United Auto Workers President Shawn Fain went after Stellantis, the maker of Jeep and Ram, at the Democratic National Convention (DNC) on Monday, Aug. 19. He claimed that the company is dragging its feet on a promise to restart an assembly plant in Belvidere, Illinois. Fain warned that reneging on the deal could lead to a strike by UAW employees.
“Let me be clear,” Fain said. “Stellantis must keep the promises they made to America in our Union contract, and the UAW will take whatever action necessary at Stellantis or any other corporation to stand up and hold corporate America accountable.”
Stellantis responded on Tuesday, saying that it told the UAW it plans to delay the opening of the plant that sits just an hour northwest of Chicago. However, the company said it is standing by its commitment and that the union’s claims that it violated the contract are wrong. A spokesperson for the company said the current contract allows them to “modify product investments and employment levels.”
Fain argued that Stellantis is delaying the process of reopening the Illinois plant, so it never has to actually do so.
The union chief previously criticized Stellantis CEO Carlos Tavares over threatening job cuts because of falling U.S. sales. Stellantis’ net profits reportedly fell by 48% during the first six months of 2024.
Stellantis current contract with the UAW runs until 2028. Fain credited Vice President Kamala Harris and President Joe Biden with helping to secure the agreement to reopen the plant in Belvedere on Monday at the DNC. The UAW won the reopening in contract talks last year after a six-week strike at multiple factories.
