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Stellantis sues UAW in US federal court over strike threats

Stellantis sues UAW in US federal court over strike threats

CNN
Friday, October 04, 2024 09:55:12 PM UTC

Chrysler parent Stellantis STLAM.MI filed a federal lawsuit against the United Auto Workers, saying the union has violated its contract by threatening to strike over the company’s delays in planned investment.

Chrysler parent Stellantis filed a federal lawsuit against the United Auto Workers, saying the union has violated its contract by threatening to strike over the company’s delays in planned investment. The automaker filed the suit on Thursday asking the US District Court in the Central District of California to declare the decision by UAW Local 230 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 argues 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.

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