Stellantis has filed a federal lawsuit against the United Auto Workers (UAW), alleging the union violated 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 in the Central District of California, centers around a dispute with UAW Local 230 in Los Angeles, CA.
Stellantis decided to delay investments in its Los Angeles Parts Distribution Center, sparking a grievance from the UAW and a strike authorization vote by the local union members on Oct. 3. Stellantis, the parent company of Chrysler, argued the union's actions are in direct violation of the contract both parties agreed to last fall.
“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,” Stellantis stated in the lawsuit.
The company also seeks damages, claiming any strike could lead to significant revenue losses due to disrupted production. Stellantis has asserted its planned investments were always subject to market conditions, citing a slowdown in demand for electric vehicles as a key factor in the delays.
UAW President Shawn Fain accused Stellantis of attempting to mislead workers. In an email to UAW members, Fain stated, "Stellantis management has unleashed an all-out misinformation campaign in an attempt to scare and confuse us about our right to authorize the International to call for a strike."
The lawsuit follows a supermajority vote by UAW members at the Los Angeles facility to request strike authorization if the company fails to resolve the grievance.
Fain argued that Stellantis CEO Carlos Tavares is looking to implement cuts to the company's underperforming U.S. operations.
“We will not sit back and watch this company violate our agreement and threaten our jobs, our plants and our communities,” Fain said. “We are united and defiant. We will do what it takes to enforce our contracts and protect American jobs.”
As part of the 2023 contract agreement, Stellantis had committed to investing $1.5 billion in its Belvidere, IL, assembly plant to build mid-size trucks by 2027, as part of a larger $19 billion investment plan. However, the automaker confirmed in August that some of these investments are being delayed due to ongoing economic conditions, though it stated it "firmly stands by its commitment."
The U.S. Department of Energy previously announced a tentative plan to award Stellantis $334.8 million to help convert the Belvidere Assembly plant for EV production and an additional $250 million to revamp its Indiana Transmission Plant for EV components. However, these awards have not yet been finalized.
