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UAW workers strike at Stellantis casting plant in Indiana

DETROIT — United Auto Workers union members went on strike Saturday at the Stellantis casting plant in Indiana, citing health and safety issues including the company's alleged refusal to repair and replace the plantÂ’s air conditioning and heating systems. The 35-acre plant in Kokomo makes parts used in the powertrains of Chrysler, Dodge, Jeep and RAM vehicles and a long-term strike could affect vehicle assembly lines across North America. Stellantis says production had not been scheduled for this weekend and it hoped to resume negotiations as soon as possible on a contract with striking UAW Local 1166. In a statement, Stellantis said it was committed “to providing a safe and healthy work environment for all employees. After bargaining in good faith for two days and presenting an offer we believed addressed the unionÂ’s concerns, we are disappointed by the UAWÂ’s decision to walk out.” The 1,200-worker plant, Kokomo Casting, is the world's largest die cast facility, according to Stellantis. It makes aluminum parts for components including transmissions and engine blocks. The UAW local complained in a statement that Stellantis “claims it has no money to meet its membership's basic needs while ”making record profits and investing billions in a new battery plant across the street." UAW local president David Willis did not immediately return a phone call seeking comment. A person who answered the phone at union offices said he was preparing for a resumption in negotiations. The casting plant is to be retooled to produce engine blocks for hybrid-electric vehicles. In May, Stellantis announced a $2.5 billion joint venture with Samsung to build an electric vehicle battery factory in Kokomo that is to employ 1,400 workers. Stellantis, formed last year with the merger of Fiat Chrysler and FranceÂ’s PSA Peugeot, had said it would build two electric vehicle battery factories in North America. The other is slated for Windsor, Ontario. Plants/Manufacturing UAW/Unions Chrysler Dodge Jeep RAM

U.S. asks Mexico to probe whether Stellantis parts plant abused labor rights

MEXICO CITY and WASHINGTON — The United States has asked Mexico to probe alleged worker rights violations at an auto-parts plant owned by Italian-French carmaker Stellantis, the fourth such complaint under a revised trade deal, U.S. officials said on Monday. The U.S. request for Mexico to examine possible abuses at Teksid Hierro de Mexico in the northern border state of Coahuila comes under the 2020 United States-Mexico-Canada Agreement (USMCA). Teksid, which employs nearly 1,500 people and makes iron castings for heavy vehicles, has been embroiled in a union dispute since 2014. Workers say the company has blocked them from being represented by the group of their choice, the Miners Union, and that it dismissed workers who backed the group. The U.S. Trade Representative's (USTR) office said in the request it was concerned workers had been denied collective bargaining rights in connection with an "invalid" contract with the Confederation of Mexican Workers (CTM), one of Mexico's most powerful unions, that had been registered with state authorities. The office asked Mexico to investigate if efforts had been made, including threats and incentives, to encourage backing for CTM or to dissuade support for the Miners Union. Labor disputes in Mexico have long featured intimidation tactics by powerful unions cozier with employers and governments than workers. Under the USMCA, the trade pact that replaced NAFTA, factories that violate worker rights could lose their tariff-free status. Companies have been watching how the tougher labor rules will play out. Stellantis, the world's fourth-largest auto group which formed from the merger of Peugeot maker PSA and Fiat Chrysler, said it "respects and supports the collective bargaining rights of its employees around the world and will comply with all local laws in that regard." The United Auto Workers union, which represents U.S. Stellantis workers, along with the AFL-CIO labor federation and the Miners Union, flagged the potential violations, the USTR's office said. Teksid, CTM and the local Conciliation and Arbitration Board should be included in the review, it added. CTM did not immediately respond to a request for comment. The union's leader in Coahuila, Tereso Medina, recently told Mexican newspaper El Economista the union would abide by the USMCA and that the conflict should be resolved with a workers' vote. Mexico's federal labor center in May said the Miners Union held the only valid contract.

Jeep and Ram could be spun off from FCA, says Marchionne

Jeep is surely the biggest single feather left in the cap of the Fiat Chrysler Automobiles portfolio. Under Sergio Marchionne's leadership, Jeep went from fewer than 500,000 annual sales in 2008 to 1.4 million in 2016, and is on track for 2 million by 2018. Add in the brand's legacy, status as one of the most recognizable nameplates in the world, and rabid fan base, and Jeep has extraordinary monetary value to its parent company. Investors and analysts have certainly noticed Jeep's inherent value. According to The Detroit Free Press, Morgan Stanley's Adam Jonas asked FCA chief Sergio Marchionne if he would ever consider spinning Jeep and Ram, FCA's dedicated truck brand, into a separate corporate entity, and he responded with a simple "Yes." Jonas estimated Jeep's worth in January of this year at $22 billion. Ram was valued at $11.2 billion. Marchionne has a history of spinning off brands while keeping them part of FCA's corporate umbrella. The most noteworthy example of this value maximization was with Ferrari, which now trades on the New York Stock Exchange and rakes in $3.4 billion in annual revenue and close to $435 million in net income, reports the Free Press. Marchionne still serves as chairman and CEO of Ferrari, and Fiat heir John Elkann owns 22 percent of the Italian marque's shares. Even if the offloading of Jeep and Ram into a separate entity would amount to little more than a profit-driven ownership change on paper, it would be huge news to the brands' loyal fanbases. In any case, such a move would likely take years to actually happen and probably wouldn't mean much at all to the products that Jeep and Ram produce. In other words, Jeep fans can keep the pitchforks in the shed ... for now. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.