UAW union faces legal action from Stellantis over strike threats.
- The United Auto Workers are being sued by Stellantis, intensifying a long-standing conflict between the transnational automaker and American union, according to CNBC's report.
- The company announced in an internal message that it is filing a lawsuit against the UAW and a local chapter in California.
The United Auto Workers are being sued by Detroit, intensifying a prolonged conflict between the international automaker and American union, according to CNBC's report.
The company announced in an internal message on Friday that it is suing both the UAW and a local chapter in California that took part in a strike authorization request vote at Stellantis' Los Angeles Parts Distribution Center.
Stellantis senior vice president of North America human resources, Tobin Williams, stated in a message that this lawsuit would hold both the International and the local union liable for the revenue loss and other damages resulting from lost production due to an unlawful strike.
If the company and union cannot reconcile, a supermajority of UAW members at Stellantis' Los Angeles Parts Distribution Center have voted to request strike authorization from the International Executive Board, the union announced Friday morning.
The lawsuit filed Thursday in U.S. District Court in the Central District of California alleges that the complaint against the UAW is aimed at preventing or resolving a contract violation.
The lawsuit claims that if the union goes on strike, the court should compensate Stellantis for any losses incurred due to a breach of contract.
The UAW did not provide a comment on the lawsuit when asked on Friday afternoon.
The union claims that Stellantis has breached its contractual obligations, which were agreed upon in a deal reached last year. This allegation comes after Stellantis has made several cuts to plant production, conducted worker layoffs, and delayed potential investments outlined in the 2023 contract.
Stellantis has contended that striking would be illegal under the contract, while UAW President Shawn Fain has consistently stated that the union will take action if necessary.
The automaker has argued that the contract includes provisions allowing it to adjust plans due to market conditions, plant performance, and other factors.
In its lawsuit, the company maintained its stance and cited "Letter 311," which outlines the company's anticipated investments. However, the company clarified that these investments are contingent upon approval, may be subject to change, and are influenced by business factors.
On the same day as Fain and union members' latest rally against Stellantis in suburban Detroit, a lawsuit was filed.
"Today, we gather for one purpose: to address the out-of-control behavior of Stellantis CEO Carlos Tavares and the need for UAW members to save the company once again. A strike will have dire consequences, and it is up to Stellantis to make the decision to honor their commitment, not the UAW."
Numerous grievances have been filed by the union and its local chapters against the automaker concerning contractual obligations and other contentious matters.
In the lawsuit, Stellantis claimed that the grievances were a false pretense used to "justify mid-contract strikes against Stellantis, which would violate the [contract's] no strike clause."
Business News
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