According to documents shared with reporters from Reuters, Jeep and Dodge parent company, Stellantis NV (NYSE:STLA) has placed its Warren Truck assembly and Jefferson North factory in Michigan under "critical status". Requiring union employees to work mandatory overtime to boost Jeep SUV production ahead of a potential strike deadline in September.
Stellantis told workers the change in status will be in effect from July 5 through October 2. According to a notice sent to employees, under the current United Auto Workers (UAW) contract, a plant in critical status can run up to 7 days a week for a period of 90 days and require union employees to work more than 9 hours of overtime.
"The company executives are doing this to build up inventory ahead of a potential strike. They are trying to intimidate us because we will not accept another sellout contract from the United Auto Workers," the union committee for the Warren Truck facility said in a blog post.
The company's communication to the UAW regarding the Warren plant's status stated that it has been designated as critical. This designation stems from a production shortfall in its Jeep Wagoneer and Grand Wagoneer models, which are currently 17,871 units behind schedule year-to-date.
UAW members said the production gap was due to the company laying off a shift of workers at the plant last summer.
Leading the charge, UAW President Shawn Fain and other union leaders are intensifying their efforts to exert pressure on Stellantis, General Motors (NYSE:GM), and Ford Motor Company (NYSE:F) as the current national contracts between the UAW and the Detroit Three approach their expiration on September 14th.
Fain has taken aim at Stellantis specifically, criticizing the closure of a Jeep factory in Belvidere, Ill., deeming it a violation of the current contractual agreement.
Shares of STLA are down 0.03% near end of day trading on Wednesday.