Chrysler parent company Stellantis would shutter operations at its lone Milwaukee facility, located at 3280 S. Clement Ave., as part of a tentative agreement reached with striking United Auto Workers employees.
The company’s white book, which details specifics of the tentative agreement, states a “Mopar Mega Hub” will open in Belvidere, Illinois in 2024 through the consolidation of work from the Marysville, Michigan; Chicago; and Milwaukee facilities. Mopar is the parts, service and customer service division of the former Chrysler Corp., now owned by Stellantis.
Approximately 100 UAW workers at the Milwaukee Stellantis facility joined a national strike against the big three automakers in September. During a Thursday livestream regarding the tentative agreement reached with Stellantis, UAW leadership alluded to the “hard choices” the organization had to make regarding Mopar facilities.
“The company came to us and said they could grow Mopar or they could consolidate some of our Mopar hubs and gain jobs, or not consolidate and lose Mopar jobs,” said Rich Boyer, vice president of UAW. “It wasn’t an easy choice or decision, but we took the consolidation plan, which came with a guarantee of job security moving forward and the right to negotiate enhanced moving bonuses.”
Less than a year ago, Stellantis announced plans to idle its Belvidere plant indefinitely. The company now has plans to form a “joint venture” battery plant in Belvidere with a yet to be determined partner, according to UAW President Shawn Fain.
“In support of our EV transformation, the company has other planned future U.S. investments including investment in the three joint ventures to construct EV battery plants, totaling approximately $9.4 billion by 2028. In total, Stellantis plans to invest approximately $18.9 billion in the U.S. during the term of this agreement,” according to the tentative agreement.
The tentative agreement, which must still be voted on, includes 25% in base wage increases through April 2028 and a 67% increase in starting wages, along with reinstating several benefits lost during the Great Recession, such as cost of living allowances.
UAW members working at Stellantis will have the opportunity to transfer jobs, Fain said Thursday.
