Duckworth, Durbin Join Sanders, Peters, Stabenow and 18 Fellow Senators in Demanding Stellantis Keep Its Promises to Autoworkers

October 24, 2024

Duckworth, Durbin Join Sanders, Peters, Stabenow and 18 Fellow Senators in Demanding Stellantis Keep Its Promises to Autoworkers

[WASHINGTON, D.C.] - In a letter sent yesterday to the automotive giant responsible for Chrysler, Dodge, Jeep and more, U.S. Senator Tammy Duckworth (D-IL) and U.S. Senate Majority Whip Dick Durbin (D-IL) joined U.S. Senators Bernie Sanders (I-VT), Gary Peters (D-MI), Debbie Stabenow (D-MI) and 18 of their colleagues in urging 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. The Senators also reinforced the importance of re-opening the idled Stellantis plant in Belvidere.

"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 Duckworth, Durbin, Sanders, Peters and Stabenow on the letter are U.S. Senators Tammy Baldwin (D-WI), Richard Blumenthal (D-CT), Sherrod Brown (D-OH), Cory Booker (D-NJ), Laphonza Butler (D-CA), Bob Casey (D-PA), Kirsten Gillibrand (D-NY), Mazie Hirono (D-HI), Amy Klobuchar (D-MN), Ben Ray Luján (D-NM), Ed Markey (D-MA), Chris Murphy (D-CT), Jack Reed (D-RI), Jacky Rosen (D-NV), Chuck Schumer (D-NY), Tina Smith (D-MN), Chris Van Hollen (D-MD) and Elizabeth Warren (D-MA).

The full letter is available here and below.

Dear Mr. Tavares:

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.

In that contract, ratified by UAW members, Stellantis committed to "establish long-term stability and job security" for its workforce. The agreement includes nearly $19 billion in new investment and product commitments in the United States, including promises to:

• 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.

We are deeply concerned that Stellantis is not keeping the promises it made to strengthen and expand good-paying union jobs in America.

Specifically, Stellantis is now delaying planned investments to reopen and expand the Belvidere assembly plant, leaving behind thousands of American workers who built the company into the auto giant it is today. We are also concerned with reporting that Stellantis is planning to move production of the next generation Dodge Durango out of the United States, after previously announcing layoffs that threaten the economic security and well-being of thousands of autoworkers. Moreover, Stellantis has stated publicly that it plans to source 80 percent of supply from "low-cost countries" like Mexico. By your own admission, Stellantis's growth plan hinges on shifting "industrial production into cost competitive countries" like Mexico, where workers are making substandard wages. These actions violate the obligations Stellantis made to the UAW. We urge Stellantis not to renege on the promises it made to American autoworkers and to provide details on the timelines for these investments.

This year, Stellantis has spent over $8 billion on stock buybacks and dividends to benefit its wealthy executives and stockholders. 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. 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.

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.

For example, the Department of Energy announced in July that nearly $335 million in federal dollars would be going to supporting Belvidere Assembly Plant's conversion to electric vehicle production. With hundreds of millions of dollars of federal support going towards ensuring strong union jobs stay in the U.S., Stellantis must honor the promises it made to UAW workers and the Belvidere community.

We urge you to deliver on the commitments you made to the UAW in your 2023 national agreement without further delay.

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