Stellantis, the parent company of Chrysler, has taken legal action against the United Auto Workers (UAW) by filing a federal lawsuit. The lawsuit alleges that the UAW has breached its contract by threatening to strike due to delays in planned investments by the automaker.
The lawsuit, filed in the US District Court in the Central District of California, challenges the decision of UAW Local 230 in Los Angeles to conduct a strike authorization vote, which Stellantis claims violates the terms of the contract established last fall.
Stellantis is seeking to hold the UAW and the local union chapter accountable for any potential revenue losses and damages resulting from potential strikes that could disrupt production.
The dispute arose when a majority of UAW members at Stellantis' Los Angeles Parts distribution center voted to seek strike authorization if the company fails to resolve a grievance regarding planned investments.
UAW President Shawn Fain has accused Stellantis of reneging on investment commitments, while the company argues that market conditions and a slowdown in electric vehicle demand have impacted the planned investments.
In response to the lawsuit, Fain criticized Stellantis for what he called a misinformation campaign aimed at intimidating union members. He asserted the union's right to authorize a strike and expressed confidence in their legal position.
The contract between Stellantis and the UAW, signed in 2023, included a $1.5 billion investment in the Belvidere, Illinois assembly plant to produce new mid-size trucks by 2027 as part of a larger $19 billion investment plan by the automaker.
While Stellantis has acknowledged delays in some investments due to economic conditions, the company reaffirmed its commitment to the agreed-upon investments. Additionally, the Energy Department has announced plans to award Stellantis funds for converting plants to produce electric vehicles, although the awards are pending final approval.
