UAW warns Stellantis (STLA.US): No labor deal, no strike action
1min read Stellantis(STLA.US) and the United Auto Workers union are increasingly at odds. UAW President Shawn Fain recently said the union plans to hold a strike authorization vote because the automaker has not yet fulfilled its commitments in a labor agreement signed last year.
Specifically, Fain said the UAW is prepared to hold a strike authorization vote at one or more Stellantis factories if the automaker does not meet the union's demands. "We have the right and the ability to take strike action if necessary," he said, adding, "We're prepared to take strike action to get Stellantis to keep its commitments." Fain insisted Stellantis plans to move production of the Dodge Durango from the Detroit Jefferson assembly plant to Windsor, Ontario, which will reduce jobs in the U.S. in violation of the new labor contract.
Stellantis denied the Durango plan and said it hopes for a forward-looking dialogue. Meanwhile, the company's CEO Carlos Tavares painted a bleak picture of the entire auto industry in Europe, warning that Stellantis and its peers are in a survival mode.
Tavares said, "We are fearless. We cannot complain, we cannot hesitate, we must focus to survive. We need to achieve cost parity between electric and thermal vehicles to survive, but another chapter opens. We operate in a chaotic geographical area, it's hard to make predictions. Governments have decided to reduce purchase incentives, which hinders market development."
As of writing, Stellantis rose 0.99% before the market opened. The stock has fallen more than 35% this year.