Stellantis has filed a federal lawsuit against the United Auto Workers, alleging that the union breached its contract by threatening to authorize a strike over delays in the company’s planned investments. The lawsuit, filed Oct. 3 in the U.S. District Court for the Central District of California, centers on a dispute with UAW Local 230 in Los Angeles, California.
Stellantis decided to postpone investment in its Los Angeles parts distribution center, sparking dissatisfaction from the UAW, and local union members voted on October 3 to authorize a strike. Chrysler’s parent company, Stellantis, claimed the union’s actions were a direct violation. The contract was agreed to by both parties last fall.
“The UAW ignored this language, filed spurious complaints, and acted in bad faith by calling for a strike authorization vote to pressure Stellantis to proceed with its planned investments,” Stellantis said in its lawsuit. mentioned in.
The company is also seeking damages, saying a strike could result in significant revenue losses due to production interruptions. Stellantis maintained that its planned investments are always subject to market conditions, and that slowing demand for electric vehicles was the main factor behind the delay.
UAW President Sean Fein accused Stellantis of trying to mislead workers. “Stellantis management has waged an all-out misinformation campaign to scare and confuse us about our rights to give internationals the power to call strikes,” Fein said in an email to UAW members. ” he said.
The lawsuit was based on a supermajority vote by UAW members at the Los Angeles facility to authorize a strike if the company fails to resolve their grievances.
Mr. Fein claimed that Stellantis CEO Carlos Tavares was considering cutting the company’s underperforming U.S. operations.
“We will not stand by while this company violates our agreements and threatens our jobs, our factories, and our communities,” Fein said. “We are united and we are defiant. We will do whatever it takes to honor our contracts and protect American jobs.”
As part of the 2023 contract agreement, Stellantis will invest $1.5 billion in its Belvidere, Illinois, assembly plant to manufacture medium-duty trucks by 2027 as part of a major $19 billion investment plan. I had promised. However, the automaker acknowledged in August that some of these investments were being delayed due to ongoing economic conditions, although it said it was “steadfastly standing by its commitments.”
The U.S. Department of Energy previously awarded Stellantis $334.8 million to help convert its Belvidere Assembly Plant for EV production and an additional $250 million to retrofit its Indiana transmission plant for EV parts. announced a tentative plan to However, these awards have not yet been finalized.
