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FCA plans May 18 restart; UAW not opposed to new target

May 5, 2020
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DETROIT — The UAW said Tuesday that it continues to talk with the Detroit 3 automakers about protecting workers even as Fiat Chrysler Automobiles announced plans to resume production at most U.S. plants the week of May 18.

The decision, announced as part of FCA’s first-quarter earnings report, comes after the automaker pushed back initial plans to reopen plants early this month. The union opposed an early May return to work, but a UAW statement Tuesday did not renew its previous opposition.

“As for the start date, the companies contractually make that decision and we all knew this day would come,” UAW President Rory Gamble said in a statement. “Our UAW focus and role is and will continue to be, on health and safety protocols to protect our members.”

FCA said Tuesday it plans to restart production at its North America plants, with the exception of the Jeep Cherokee factory in Belvidere, Ill., the week of May 18. The Belvidere factory, which has been idled numerous times in recent months to match output with demand, is expected to open by June 1.

FCA CEO Mike Manley said the production plan was developed after “continuous discussions” with the UAW and governors of states where FCA operates, particularly Gov. Gretchen Whitmer of Michigan.

“This is a reflection on the progress that has been made in our home states and the comprehensive health and safety measures we are adopting in our plants,” Manley said during an earnings call Tuesday. “We don’t expect that to change between now and the 18th, but we will continue to work very closely with each of the governors to make sure that we progress towards that reopening on May 18.”

Gamble said FCA’s decision is personal.

“My own family will be among those reporting and my responsibility to our UAW members and my family will be consistent,” he said in the statement. “We must implement and follow these guidelines and self-reporting procedures we have worked out. And the UAW will fulfill its role to continue to actively monitor and aggressively respond regarding all issues impacting the health and safety of UAW members in whatever manner may be necessary as we return to the worksite.”

The Detroit 3 have been developing extensive return-to-work playbooks that spell out strict safety measures, including mandatory personal protective equipment and the closure of common areas to reduce the risk of exposure to the virus.

FCA said jobs per hour will be reduced due to additional procedures to ensure work force safety. Initial production, the company said, will be prioritized to electrified products, higher margin products and vehicles with low inventory.

Production levels will be aligned to consumer demand.

Ford Motor Co., in a statement, said it had not yet determined when it will resume production at its North American plants, although some local union leaders have told workers that Ford is also targeting May 18.

“We are continuing to assess public health conditions, government guidelines and supplier readiness to determine when the time is right to resume production,” a spokeswoman said.

General Motors, sticking with its previous statements, would not confirm a new start date.

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