3 weeks ago
15
In a letter sent yesterday to the automative giant that is responsible for Chrysler, Dodge, Jeep, and more, Sens. Bernie Sanders (I-Vt.), Chairman of the Senate Committee on Health, Education, Labor, and Pensions (HELP), Gary Peters (D-Mich.), Richard Durbin (D-Ill.), Debbie Stabenow (D-Mich.), Tammy Duckworth (D-Ill.), and 18 of their colleagues urged Stellantis CEO Carlos Tavares to honor the collective bargaining agreement signed last year with the United Auto Workers (UAW) and the promises the company made to strengthen and expand good-paying union jobs in America.
“We are writing to express our growing concerns about the failure of Stellantis, under your leadership, to honor the commitments it made to the United Auto Workers (UAW) in last year’s collective bargaining agreement…” wrote the senators. “We urge Stellantis not to renege on the promises it made to American autoworkers and to provide details on the timelines for these investments.”
In the contract ratified last year, Stellantis committed to:
- Make nearly $19 billion in new investments and product commitments in the U.S.;
- Re-open the plant in Belvidere, Illinois that was “indefinitely idled” last year;
- Establish a parts and customer care Mega Hub in Belvidere;
- Continue to manufacture the Dodge Durango in Detroit through 2025; and
- Manufacture the next generation Dodge Durango in Detroit starting in 2026.
Instead, Stellantis has taken actions that undermine the commitments made to the UAW and leave “behind thousands of American workers who built the company into the auto giant it is today,” wrote the senators. These actions may include moving the next generation Dodge Durango out of the U.S. and into “low-cost” countries like Mexico, as well as delaying planned investments to reopen and expand the Belvidere assembly plant.
This year, Stellantis has spent over $8 billion on stock buybacks and dividends to benefit its wealthy executives and stockholders. During the first six months of this year, Stellantis has generated over $6 billion in profits, making it one of the most profitable auto companies in the world. The company has also benefited from billions of dollars in financial assistance from American taxpayers and the federal government. In July, the Department of Energy announced Stellantis would receive nearly $335 million in federal dollars to support Belvidere Assembly Plant’s conversion to electric vehicle production.
“Last year, while blue collar auto workers in Belvidere were being laid off indefinitely, you were able to receive a 56 percent pay raise, boosting your total compensation to $39.5 million, which made you the highest paid executive among traditional auto companies,” wrote the senators. “We believe that if Stellantis can afford to spend over $8 billion this year on stock buybacks and dividends, it can live up to the contractual commitments it made to the UAW. This is especially true given the billions of dollars in financial assistance American taxpayers have spent to support your company and the enormous sacrifices autoworkers have been forced to make over many decades.”
Joining Sanders, Peters, Durbin, Stabenow, and Duckworth on the letter are Sens. Tammy Baldwin (D-Wis.), Richard Blumenthal (D-Conn.), Sherrod Brown (D-Ohio), Cory Booker (D-N.J.), Laphonza Butler (D-Calif.), Bob Casey (D-Pa.), Kirsten Gillibrand (D-N.Y.), Mazie Hirono (D-Hawaii), Amy Klobuchar (D-Minn.), Ben Ray Luján (D-N.M.), Ed Markey (D-Mass.), Chris Murphy (D-Conn.), Jack Reed (D-R.I.), Jacky Rosen (D-Nev.), Chuck Schumer (D-N.Y.), Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), and Elizabeth Warren (D-Mass.).
To read the full letter, click here.
