In a significant turn of events, Stellantis, the parent company of Chrysler, has filed a federal lawsuit against the United Auto Workers (UAW) over alleged contract violations. The lawsuit, submitted last Thursday in the U.S. District Court for the Central District of California, claims that a local UAW chapter in Los Angeles breached their agreement by proceeding with a strike authorization vote amidst ongoing disputes regarding the company’s investment delays.
Stellantis is seeking a legal ruling to hold both the UAW and the local chapter liable for any financial losses and damages that could arise from production halts triggered by a potential strike. This legal action follows a recent vote in which a substantial majority of UAW members at Stellantis’s parts distribution center in Los Angeles expressed their intention to pursue strike authorization if negotiations regarding the planned investments remain unresolved.
UAW President Shawn Fain has alleged that Stellantis has reneged on its investment promises, arguing that the company has not adhered to the contractual terms. In contrast, Stellantis contends that its investment plans have always depended on market conditions, highlighting a slowdown in electric vehicle demand since the original agreement.
“The UAW acted in bad faith by ignoring the contract’s language, filing frivolous grievances, and pushing for a strike authorization vote to compel Stellantis to honor its investment plans,” the lawsuit states.
As of now, the UAW has not commented publicly on the lawsuit. Earlier this year, Stellantis had announced a commitment of $1.5 billion for its Belvidere, Illinois assembly plant, aiming to produce new mid-size trucks by 2027, as part of a broader $19 billion investment strategy.
In August, Stellantis acknowledged that it was delaying certain planned investments due to challenging economic conditions but emphasized its commitment to these investments, stating that the revised schedule is vital for the company’s future competitiveness and sustainability. The contract explicitly outlines that Stellantis’s product investments are dependent on plant performance, market conditions, and consumer demand.
Additionally, the UAW issued warnings in August that some local units, representing tens of thousands of Stellantis workers, might file grievances and could potentially initiate a nationwide strike, accusing the automaker of not fulfilling its production commitments.