Stellantis N.V. (NYSE:STLA) has reportedly instructed union employees at Warren Truck assembly and Jefferson North factory in Michigan to work mandatory overtime.
Stellantis told workers that the above plants would be under the so-called “critical status” from July 5 through October 2, under which the factories can run up to 7 days a week for 90 days, Reuters reported quoting a document shared by the company.
Stellantis is trying to boost Jeep SUV production before a potential strike deadline in September. The status also requires union employees to work over 9 hours of overtime.
Also Read: Stellantis, General Motors Pay $363M In US Fuel Economy Penalties: Report
Stellantis said that due to high demand for the Wagoneer, Grand Wagoneer, and Jeep Grand Cherokee, the critical plant status has been deployed, mentioned Reuters.
The report further noted Jeep Wagoneer and Grand Wagoneer models are 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.
“The company executives are doing this to build up inventory ahead of a potential strike,” the rank-and-file committee, an independent group of mostly union workers for the Warren Truck facility, said in a blog post, which Reuters noted.
Also Read: Stellantis Recalls Jeep SUVs Due To Potential Fire Risk
Price Action: STLA shares are trading higher by 3.34% to $17.49 on the last check Thursday.
