Nearly 80 members of Congress, including the Senate's top two Democrats, on Wednesday urged automaker Stellantis (STLAM.MI) to honor investment commitments that are part of its contract with the United Auto Workers union.
The union and the Jeep-maker have been in a bitter battle after Stellantis said it would delay a planned $1.5 billion investment to reopen an assembly plant in Belvidere, Illinois, though the automaker insists it is committed to the plan and denies it is violating the contract.
Democratic members of the House of Representatives and U.S. Senate sent two separate letters, first reported by Reuters, to the automaker on Wednesday outlining their concerns. The Democratic lawmakers including Senate Majority Leader Chuck Schumer and Senator Dick Durbin cited the Illinois plant delay and other reported decisions by Stellantis.
"These actions violate the obligations Stellantis made to the UAW," the lawmakers wrote to Stellantis CEO Carlos Tavares, asking the automaker, which has come under heat from dealers and shareholders for its declining sales, to lay out a timeline for the investments.
Chrysler owner Stellantis, which recently shook up its top leadership as it tries to turn around slipping North American sales, is now facing another nationwide walkout from the union, just about a year after UAW president Shawn Fain led a six-week strike against Detroit's Big Three automakers.
The company did not immediately respond to a request for comment.
The UAW's grievances, echoed in those letters, center around product and investment commitments made during the contract negotiations last autumn. Stellantis agreed to reopen the shuttered Illinois assembly plant to build new mid-size trucks by 2027.
"Stellantis's recent attempt to justify delays in its contractually mandated investment and production commitments did nothing to assuage our concerns. Stellantis appears resolved to claim market conditions prevent you from honoring these commitments," said the letter sent from dozens of Democrats in the U.S. House of Representatives.
Tensions between the union and carmaker have risen in the lead-up to the Nov. 5 U.S. Presidential election, with Vice President Kamala Harris specifically calling out Stellantis in public statements for taking actions that "break their word to workers".
The union has laid the groundwork for a nationwide walkout at Stellantis through filing grievances and holding strike votes at its local chapters. So far, some local chapters have already voted to authorize a strike if the two sides cannot come to an agreement.
