On Thursday, we rallied and marched to demand that Stellantis fulfill its promise to invest in good American jobs! Stellantis is trying to backtrack on its contractual commitments to build the Dodge Durango in Detroit and to reopen the Belvidere Assembly Plant in IL. #StandUpUAW pic.twitter.com/T3aFtY9zZz
— UAW (@UAW) October 5, 2024
Stellantis has filed eight additional lawsuits against the United Auto Workers (UAW) union and 23 of its local units as tensions escalate between the automaker and the union. The lawsuits come amid strikes and contentious negotiations over worker conditions and benefits. One of the key issues in the dispute is the UAW’s jobs bank proposal, which Stellantis has rejected.
Stellantis says it had filed eight additional lawsuits against the UAW and 23 Local unions on Oct. 4, prompting a meeting with the UAW on Saturday. Initial lawsuit was filed Thursday: https://t.co/RYqPDDNkat
— Michael Wayland (@MikeWayland) October 7, 2024
The automaker cited financial difficulties dating back to the 2009 Chrysler bankruptcy as a reason for the rejection, arguing that such a proposal would not be financially viable. The UAW has expressed frustration with Stellantis’ stance on several key issues, including job security and health benefits. However, the union has not issued an official statement regarding the latest lawsuits.
New: Stellantis has already filed more fed lawsuits against the UAW and many individual locals–including in Michigan, Ohio, Massachusetts–as it tries to prevent a mid-contract strike. Company not waiting for locals to hold strike authorization votes. https://t.co/3AJcLqtXka
— Luke Ramseth (@lramseth) October 5, 2024
Despite the legal action and strikes, negotiations between Stellantis and the UAW are expected to continue as both sides seek a resolution to the ongoing disputes. In a separate lawsuit filed on Thursday, Stellantis sought a declaration from the US District Court in the Central District of California that UAW Local 230’s decision to take a strike authorization vote violates terms of the contract reached last fall. The automaker aims 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.
Stellantis disputes union strike threats
UAW President Shawn Fain stated that the company has violated the contract by backing off investment commitments. However, Stellantis contends that the investments were always subject to market conditions and that demand for electric vehicles has slowed since the deal was signed.
Fain accused Stellantis CEO Carlos Tavares of wanting to make sharp cuts to the company’s underperforming US operations. “We will not sit back and watch this company violate our agreement and threaten our jobs, our plants, and our communities. We are united and we are defiant.
We will do what it takes to enforce our contracts and protect American jobs,” Fain said. 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. This was part of $19 billion in overall investment plans by the automaker.
Stellantis acknowledged in August that some of the investments would be delayed due to economic conditions but stated it “firmly stands by its commitment.”
