The United Auto Workers union is expanding its strike against Stellantis NV (NYSE:STLA, EPA:STLA) with the addition of its Sterling Heights Assembly Plant in suburban Detroit, the union announced Monday.
The facility employs about 6,800 workers and produces Ram 1500 full-size pickup trucks.
The decision comes as the union slammed Stellantis for lagging behind fellow Dtreoit automakers Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) in terms of its offer to union workers.
“Currently, Stellantis has the worst proposal on the table regarding wage progression, temporary worker pay and conversion to full-time, cost-of-living adjustments (COLA), and more,” the UAW said in a statement.
Notably, Stallentis employs fewer UAW members than either Ford or GM.
The addition of the Sterling Heights plant is the first new facility to join the targeted strike in nearly two weeks and it brings the total number of UAW members on strike to over 40,000.
“We’ve tried to do things the right way. We’ve taken our time, we’ve been patient with these companies. It’s time to amp up the pressure and SHAP just seemed like the proper target at this time,” UAW President Shawn Fain said outside the plant on Monday.
The Sterling Heights plant is a “money-maker” for Stellantis, according to Fain, but it seems positioned well to withstand a strike. According to reports, the company had a 114-day supply of Ram 1500 pickups as of October. 17.
One of the central issues is that Stellantis is considering moving Ram 1500 production to Mexico, according to the union.
Shares of Stellantis traded 1.4% higher Monday afternoon to $19.14.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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