The United Auto Workers (UAW) union made a surprising move on Monday by ordering 6,800 employees of Stellantis to go on strike at the Ram truck facility. This decision comes amid ongoing negotiations with the company over pay, the transition of temporary workers to full-time positions, and cost-of-living adjustments.
Sterling Heights Assembly Plant, known as Stellantis’ largest and most profitable plant, was the focal point of the strike. Located in Sterling Heights, Michigan, the plant is responsible for producing the popular Ram 1500 pickup. Despite Stellantis’ strong financial performance, the UAW criticized the company’s proposed terms as the worst on the table compared to its competitors, Ford and General Motors.
In response, Stellantis expressed its surprise and disappointment at the union’s decision to strike, citing the progress made during negotiations and the presentation of an improved offer to the UAW. The company further emphasized its frustration with the UAW’s strategy, claiming that the continued strikes would result in a loss of domestic market share to non-union competitors.
The Ram pickup trucks are a significant revenue driver for Stellantis in the US market. However, production of the Ram 1500 is not limited to the Sterling Heights plant, with additional production taking place at other locations, including a non-union plant in Mexico and another UAW-represented plant in Warren, Michigan.
The strike’s financial implications are significant for Stellantis, with estimates suggesting a potential weekly loss of $110 million, primarily due to the shutdown of the Sterling Heights plant. Analysts also projected a cost of roughly $200 million per week for the company. Moreover, the plant’s daily output of approximately 1,000 trucks contributes to substantial annual revenue potential of nearly $20 billion based on the average sales price of a Ram 1500.
This marks the second targeted strike in a span of two weeks by the UAW, with the previous one occurring at Ford’s Kentucky Truck Plant. The continued strikes have now affected more than 40,000 UAW members, with several assembly plants and parts distribution networks impacted across the automotive industry.
As negotiations continue, both the UAW and Stellantis have stood firm in their respective positions, with the former seeking greater benefits for its members, considering the companies’ strong financial performance. United Auto Workers (UAW): Despite the strike’s economic repercussions for the companies and their suppliers, the union remains resolute in its pursuit of improved terms for its members. Source thedailycourierng news