Stellantis’ Contract Proposal Could Lead to Closure of 18 US Facilities, Sources Say
DETROIT – The latest contract proposal by automaker Stellantis to the United Auto Workers (UAW) union has raised concerns over the potential closure of 18 US facilities, according to sources familiar with the discussions. However, the proposal also includes plans for new investments and the repurposing of an idled vehicle assembly plant in Illinois.
The proposed plans are expected to have a significant impact on UAW members and would result in the downsizing of Stellantis’ North American operations. One major aspect of the plan involves the consolidation of 10 “Mopar” parts and distribution centers into larger “Amazon-like” distribution centers. The proposal also suggests repurposing the Belvidere Assembly plant, which was indefinitely idled in February.
Other manufacturing facilities included in the proposal are the Tipton Transmission Plant in Indiana, the partially decommissioned Trenton Engine Complex, the already idled Mount Elliott Tool & Die in Michigan, and the Detroit warehouse, office space, and the automaker’s North American headquarters and technology center in metro Detroit.
Stellantis’ proposal reflects the industry’s trend towards remote or hybrid work, following the COVID-19 pandemic. The automaker had previously announced plans for a majority of its salaried employees to work remotely. As a result, the proposal includes potential adjustments to its North American headquarters and technology center, as the company assesses its real estate needs.
While it is not guaranteed that the facilities will close under a labor deal, Stellantis is required to include potential closures or sales of any location where a UAW member works. Negotiations between Stellantis and the UAW reconvened on Monday after the targeted strikes against the company and the Detroit automakers.
The Belvidere Assembly plant in Illinois has emerged as a significant point of contention between Stellantis and the union. Reopening the plant would be a major victory for UAW leaders, although they have concerns regarding uprooting workers and families, employment levels, pay, and automation.
Stellantis’ proposal also includes plans for new Mopar facilities in Fishkill, New York, and Macon, Georgia. It suggests moving work from various facilities in Michigan to its Trenton North plant, while potentially closing several existing Mopar facilities.
The automaker’s proposal also aims to eliminate wage tiers within the Mopar division, which currently ranges from about $17 to over $30 an hour. It also includes a moratorium on selling or spinning off the Mopar operations during the four-year term of the contract.
UAW Vice President Rich Boyer emphasized the importance of the Belvidere plant and called it a make-or-break issue during a rally with U.S. Senator Bernie Sanders. Boyer stated that the negotiations are about the working class and the disparity between the haves and have nots.
Stellantis’ proposal to the UAW includes a substantial raise of nearly 21% over the course of the contract, an immediate 10% pay increase, the elimination of wage tiers for some workers, and various bonuses and benefits. The benefits offered in the proposal align with those from other automakers such as General Motors and Ford.
The discussions between Stellantis and the UAW are ongoing, and the outcome will significantly impact the future of these facilities and the workers they employ.