(Reuters) – The United Auto Employees union requested the employees at Stellantis (NYSE:) to authorize a strike, accusing the French-Italian automotive maker of breaking its contract guarantees, UAW President Shawn Fain mentioned in a letter to the union’s U.S. chapters on Friday.
“We unanimously recommend to the membership that every UAW worker at Stellantis prepare for a fight, and we all get ready to vote YES to authorize a strike at Stellantis,” Fain wrote within the letter that the UAW shared in a put up on Fb (NASDAQ:).
The union’s grievances focus on Stellantis’ product and funding commitments made throughout contract negotiations final autumn.
“We reviewed the serious violations of our contract and patterns of illegal behavior by Stellantis. The evidence is clear that CEO Carlos Tavares is steering Stellantis on a crash course that will cause our members tremendous harm,” the letter on Friday added.
Stellantis didn’t instantly reply to a Reuters request for remark. Nevertheless, Stellantis has beforehand denied failing to honor commitments with UAW, with its North America COO Carlos Zarlenga saying the corporate “has abided, and will continue to abide, by the agreement the parties reached in 2023.”
Chrysler-parent Stellantis’ North American operations have been struggling and has attracted criticism from customers and employees who’ve argued it has not executed sufficient to invigorate demand.
The principle sticking factors for the UAW revolve round delays of a deliberate multibillion-dollar funding into a brand new battery plant and manufacturing facility in Belvidere, Illinois and potential plans by Stellantis to maneuver manufacturing of the Dodge Durango SUV out of the US.
Fain mentioned earlier this month that a number of of its union native chapters had been laying the groundwork for strikes.
Tavares has mentioned he’s centered on enhancing Stellantis’ efficiency within the U.S., and said a willingness to close down manufacturers globally if they don’t earn a living.
