DETROIT, Mich. (WTVO) — According to CNBC, the most recent proposal sent by automaker Stellantis to striking United Auto Workers union called for closing 18 U.S. facilities and creating a Mopar parts distribution center, a “Mega Hub” at the former Belvidere Assembly plant.
Stellantis idled the factory, which produced the Jeep Cherokee, in February.
Stellantis’ plan would shut existing Mopar parts and distribution centers across the country and consolidate them into larger “Amazon-like” distribution centers, including a proposed “Mega Hub” in Belvidere.
The deal would not require the closing of other facilities, but the company is required to include potential closures of any location where a UAW member works.
UAW workers have been on strike since Friday morning at three major assembly plants against each of the “Big Three” automakers: General Motors, Ford, and Stellantis.
According to reports, reopening Belvidere Assembly would not employ as many union members as it did, and Mopar jobs pay less than traditional assembly factories.
Stellantis is also discussing the possibility of using part of Belvidere for electric vehicle battery components.
The company’s most recent proposal included raises of nearly 21% over the life of the contract, with an immediate 10% increase, and the ending of wage tiers for some workers.
UAW Vice President Rich Boyer said “I want the world to hear this: This is about the working class. This is about the haves and have nots, and we’re tired of not having anything.”
On Sunday, Stellantis sent a statement to UAW members, saying: “Once again the Union has mischaracterized the facts. It was made very clear to the UAW leadership that the competitive offer presented on Thursday included a strong future for Belvidere and was connected to the contract deadline. Our intention was to present a strong proposal for Belvidere and, at the same time, avoid a strike for our represented workers. The truth is UAW leadership ignored Belvidere in favor of a strike. As we stated earlier today, ‘we are glad to continue to work on a solution (for Belvidere). We want to have a solution including that (Belvidere).’ When we work together, we win together. We stand ready to get everyone back to work as soon as possible.”
Mopar, a combination of the words “motor” and “parts”, is one of the oldest car part brands in the U.S.