Can the UAW strike over Dakota pickup and parts-hub delays?

Yesterday, the UAW revealed that the midsized pickup truck, referred to by outsiders as the Dodge Dakota though it could carry the Ram 1200 or another badge, had been delayed and would no longer be at the Belvidere Assembly Plant in 2027 as promised.

The UAW argued:

… the union won the right to strike over product and investment commitments, and a historic commitment to reopen Belvidere Assembly, which was indefinitely idled in early 2023. Since ratification, the company has gone back on its product commitments at Belvidere, and has been unreceptive in talks with the union to stay on track.

Aside from the impact on Belvidere, this glaring violation of the contract imperils all of the other investment commitments the company has made, and also impacts Stellantis members nationally, as they will not have those jobs for transfer opportunities in the event of layoffs.

Under the UAW Stellantis contract, once an issue has been taken through the grievance procedure, the union may authorize a strike over the grievance.

The first step has already been taken: several union locals (12/Toledo Assembly, 140/Warren Stamping, 1700/Sterling Heights Assembly, 7/Detroit Jefferson, 51/Detroit Assembly, 685/Kokomo, and 1166/Kokomo) have filed a grievance—

The Company has informed the Union that it will not launch the Belvidere Consolidated Mopar Mega Hub in 2024, it will not begin stamping operations for the Belvidere Mega Hub in 2025 and it will not begin production of a midsize truck in Belvidere in 2027.  The Company’s failure to plan for, fund and launch these programs constitute a violation of the U.S. Investment letter in the P&M and OC&E Collective Bargaining Agreements.  During 2023 National Negotiations the parties agreed to the investment plan for Belvidere to address job security concerns impacting bargaining unit members throughout the entire system.  The Company’s failure to honor its commitments in the U.S. Investment letter is a serious concern to all bargaining unit members.

Demand:  The Union demands that the Company rescind its decision to push back the above-referenced launches and immediately plan for and fund the Belvidere investments in order to comply with the agreed upon timeline for launching the Belvidere Mega Hub (2024), the Belvidere Stamping operation (2025) and Belvidere midsize truck production (2027).

Stellantis formally disagreed in a press release:

… it is critical that the business case for all investments is aligned with market conditions and our ability to accommodate a wide range of consumer demands. Therefore, the Company confirms it has notified the UAW that plans for Belvidere will be delayed, but firmly stands by its commitment. As always, the Company is committed to engaging with the Union on a productive, respectful and forward-looking dialogue.

The Company has not violated the commitments made in the Investment Letter included in the 2023 UAW Collective Bargaining Agreement and strongly objects to the Union’s accusations. In fact, the UAW agreed to language that expressly allows the Company to modify product investments and employment levels. Therefore, the Union cannot legally strike over a violation of this letter at this time.

The argument appears to be over whether the contract allows Stellantis to withdraw promised product, thereby keeping Belvidere shut down for longer, if its plan or the market changes. If the union did agree to this, and made no exception for the pickup, it would have been an unwise deal for the UAW but nothing they could strike over. On the other hand, if the union is correct in thinking that changes in plan are not allowed in this particular case, they could strike; the UAW claims that it “won the right to strike over product and investment commitments.”