The United Auto Workers and Stellantis have reached an agreement on outsourced work at the Sterling Heights plant in Michigan, avoiding a strike authorization vote that UAW Local 1700 had scheduled for May 7 and 8. The vote could have opened a new front of tension at one of the group’s most strategic facilities in North America.
UAW cancels strike vote after reaching agreement with Stellantis
The dispute centered on the use of outside suppliers for skilled work inside the plant, a point strongly challenged by the union. The UAW argued that jobs intended for electricians, industrial mechanics, pipefitters and toolmakers should remain accessible to unionized employees through regular internal bidding procedures. For the union, the issue went beyond individual assignments and involved respect for the commitments made in the 2023 collective agreement on employment, production investments and the protection of skilled labor in the United States.
According to Michael Spencer, president of Local 1700, the prospect of a strike vote pushed Stellantis to reopen talks with greater willingness than in previous months. The union described the meetings that led to the agreement as productive and said skilled workers will now be able to bid on future projects, a request the UAW had pursued for about a year. The full details of the agreement have not been made public.
The Sterling Heights plant, also known as SHAP, holds particular importance for Stellantis because it builds the Ram 1500, one of the most profitable models in the group’s entire portfolio and a key vehicle for its financial results in North America. Any production shutdown could have caused significant consequences, especially as Stellantis works to stabilize volumes after the difficulties of previous quarters, including supply problems in the engine chain. The agreement with the UAW therefore allows the company to maintain operational continuity at the plant and avoid, at least for now, a new clash between the union and the automaker in the United States.
