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Tensions at the Sterling Heights Assembly Plant (SHAP) have cooled off after the United Auto Workers (UAW) announced it reached an agreement with Stellantis over grievances tied to outsourced work at the Michigan truck plant.

Earlier this week, UAW Local 1700 was preparing to hold a strike authorization vote on May 7 and 8. The move would have allowed union leadership to request approval for a future walkout if negotiations failed to move forward. However, after several discussions between both sides, union officials confirmed the vote was canceled after a resolution was reached.

Production of the Ram 1500 at the Sterling Heights Assembly Plant (SHAP) in Michigan. (Stellantis).

According to UAW Local 1700 President Michael Spencer, the possibility of a strike vote helped push Stellantis back to the negotiating table. In an update shared with members, Spencer said productive conversations with the company ultimately led to an agreement addressing the union’s concerns.

The dispute centered around claims that Stellantis had increasingly relied on outside contractors to perform skilled trades work inside the plant instead of allowing union-represented workers to bid on those jobs. Positions affected included electricians, millwrights, pipefitters, and toolmakers—jobs that are critical to keeping production lines operating smoothly.

For the union, the issue was bigger than just individual projects. Leadership argued that outsourcing this type of work conflicted with commitments made during the 2023 labor agreement, especially regarding job protections and future investment at U.S. manufacturing facilities.

SHAP remains one of Stellantis’ most important North American plants. The facility builds the highly profitable Ram 1500 (DT), one of the company’s top-selling vehicles. With demand remaining strong, the plant has reportedly been operating at full capacity in recent months as Stellantis works to recover from earlier production slowdowns tied to engine supply issues.

Sterling Heights Assembly Plant in Sterling Heights, Michigan. (Stellantis).

Union officials indicated the new agreement now gives skilled trades employees the ability to bid on future projects inside the plant, something workers had been pushing for over the past year. While details of the agreement have not been publicly released, the cancellation of the strike authorization vote removes a major cloud hanging over one of Stellantis’ most critical truck assembly operations.

Source: The Detroit News

Robert S. Miller

Written by

Robert S. Miller

Robert S. Miller is a diehard Mopar enthusiast who lives and breathes all that is Mopar. The Michigander is not only the Editor for MoparInsiders.com, 5thGenRams.com, and HDRams.com but an automotive photographer. He is an avid fan of offshore powerboat racing, which he travels the country to take part in.