Stellantis sues UAW in US federal court over strike threats
3:39 pm Friday, October 04th, 2024
By David Shepardson and Ben Klayman
WASHINGTON/DETROIT (Reuters) -Chrysler parent Stellantis filed a federal lawsuit against the United Auto Workers, saying the union has violated the contract by threatening to strike over the company’s delays in planned investment.
The automaker filed the suit on Thursday asking the U.S. District Court in the Central District of California to declare the decision by a union local in Los Angeles to take a strike authorization vote violates terms of the contract reached last fall.
Stellantis seeks to hold the UAW and the local union chapter liable for any potential revenue loss and other damages resulting from lost production due to any strike.
On Thursday, a supermajority of UAW members at Stellantis’ Los Angeles Parts distribution center voted to request strike authorization if the company and union can’t settle a grievance over planned company investments.
UAW President Shawn Fain has said the company has violated the contract by backing off investment commitments, but the company said any investments were always subject to market conditions and demand for electric vehicles has slowed since the deal was signed.
“The UAW acted in bad faith by disregarding this language, filing sham grievances, and calling a strike authorization vote to pressure Stellantis to proceed with planned investments,” the company said in the lawsuit.
The UAW did not immediately comment on the suit.
In 2023, Stellantis agreed as part of the contract with the union to invest $1.5 billion in its Belvidere, Illinois assembly plant to build new mid-size trucks by 2027. That was part of $19 billion in overall investment plans by the automaker.
Stellantis in August acknowledged it is delaying some of the investments because of economic conditions but said it “firmly stands by its commitment,” saying the new timetable is needed “to ensure the company’s future competitiveness and sustainability.”
The contract includes language that Stellantis product investments are “contingent upon plant performance, changes in market conditions and consumer demand,” the company said.
In August, the UAW said some of its local units representing tens of thousands of workers at Stellantis were preparing to file grievances and could launch a nationwide strike, accusing the automaker of failing to honor production commitments.
(Reporting by Utkarsh Shetti and Ben Klayman; Editing by David Gregorio)
