Workers at Stellantis’ Los Angeles Parts Distribution Center overwhelmingly voted for strike authorization in response to the company’s failure to meet investment commitments in the U.S.
UAW Members Take Stand Over Stellantis’ Broken Promises
ONTARIO, Calif. – On Thursday night, members of the United Auto Workers (UAW) at Stellantis’ Los Angeles Parts Distribution Center took a bold step, overwhelmingly approving a strike authorization vote. The workers are demanding the company fulfill its contractual obligations to invest in U.S. operations. This vote marks the first time UAW members at Stellantis have taken such action as part of an escalating dispute over the company’s failure to honor its commitments under the 2023 labor agreement.
The union is pressuring Stellantis, one of the “Big Three” automakers, to make good on its promises to invest $19 billion into U.S. plants, a key component of the UAW’s 2023 contract, which secured thousands of jobs. To date, the company has allocated only 2% of the agreed amount and is backtracking on several major projects, including the reopening of the Belvidere assembly plant and building the Dodge Durango in Detroit.
“We won these investments during the Stand Up strike, and we will strike again if needed to ensure Stellantis keeps its promise,” said UAW President Shawn Fain, emphasizing the gravity of the situation.
Stellantis Faces Escalating Pressure Amid Union Tensions
As UAW members rally behind the promise of job security through new investments, Stellantis is scrambling to avert a strike that could cripple its operations. The company has been making robocalls to UAW members, urging them to reject strike authorization, but the strategy appears to have backfired. Thursday’s overwhelming yes vote signals that UAW members are united in their willingness to strike if Stellantis continues to drag its feet on fulfilling its commitments.
Fain sharply criticized Stellantis CEO Carlos Tavares, pointing out that while the company has poured billions into stock buybacks and shareholder dividends, it has failed to invest adequately in American jobs. “If Stellantis can give CEO Carlos Tavares a 56% raise, they can invest in our plants,” Fain said, adding that Tavares’ leadership is under fire from multiple fronts, including lawsuits from suppliers and discontent among the company’s national dealer network.
Legal Battles and Strike Loom as UAW Gears Up for Action
In response to UAW’s growing strike threat, Stellantis has filed lawsuits in federal court, attempting to prevent workers from striking over the company’s unmet obligations. The automaker’s legal maneuvers, however, have done little to dampen the resolve of UAW members, as seen by the vote in Los Angeles.
More UAW locals across Stellantis plants are expected to hold similar votes soon, raising the stakes in a labor dispute that could spill over into a full-blown strike if no resolution is reached. The union remains steadfast, pointing to Stellantis’ failures to invest in American workers despite reaping substantial profits.
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