Stellantis Files Additional Lawsuits Against UAW

By David Shepardson and Ben Klayman
WASHINGTON/DETROIT (Reuters) – Chrysler parent Stellantis (NYSE:STLA) announced on Monday that it has filed eight additional lawsuits against the United Auto Workers (UAW) and 23 local units. Stellantis alleges that the union violated its contract by threatening to strike over the company’s delays in planned investments.

Stellantis had initially filed suit on Thursday against the UAW and UAW Local 230 in Los Angeles following the union’s decision to conduct a strike authorization vote, which Stellantis claims contravenes the terms of the agreement reached last fall.

On Thursday, UAW members at Stellantis’ Los Angeles parts distribution center voted to request strike authorization if the company and union fail to resolve a grievance concerning planned company investments.

In response to the new lawsuits, Stellantis held a meeting with the UAW on Saturday, suggesting a reinstatement of the Jobs Bank concept, historically preventing layoffs among the Detroit Three automakers. Stellantis, however, rejected this proposal, stating that it could jeopardize the company’s future and contributed to its bankruptcy in 2009.

The UAW has not commented on the latest developments, but UAW President Shawn Fain contends that Stellantis violated the contract by backing away from its investment commitments. Stellantis argues that these investments were contingent upon market conditions and cites a slowdown in demand for electric vehicles.

In 2023, Stellantis committed to investing $1.5 billion in its closed Belvidere, Illinois assembly plant to produce new mid-size trucks by 2027, forming part of a broader $19 billion investment plan. Although Stellantis acknowledged some delays in investments due to economic factors, it maintains that it is committed to its plans.

The UAW is pushing to reinstate the Jobs Bank for Belvidere employees, including around 900 employees who transferred from the plant to other locations. Under the 2023 contract, workers awaiting the resumption of work at the facility are entitled to 74% of their pay and comprehensive healthcare benefits, as stated by Stellantis.

Harley Shaiken, a labor professor emeritus at UC Berkeley, noted that securing the Belvidere plant protections was a critical aspect for the union. He remarked, “Stellantis is really drawing a line in the sand and taking a tough position and intends to fight this aggressively. The cost of that is the relationship with the union, which is heading downhill fast.”

Additionally, the Energy Department mentioned in July its intention to grant Stellantis $334.8 million to upgrade the Belvidere Assembly plant for electric vehicle production, although this funding is not yet finalized.