Stellantis sues UAW in US federal court over strike threats
Automaker Files Lawsuit Against Union Over Strike Threat #
A major automaker has filed a federal lawsuit against a prominent auto workers union, alleging that the union has violated its contract by threatening to strike over delayed investment plans.
The lawsuit, filed in a US District Court, seeks to declare that a local union chapter’s decision to take a strike authorization vote violates the terms of the contract reached last fall. The automaker is seeking to hold the union and its local chapter liable for any potential revenue loss and other damages resulting from lost production due to any strike.
A significant majority of union members at one of the automaker’s parts distribution centers voted to request strike authorization if the company and union cannot settle a grievance over planned company investments.
The union’s president has stated that the company violated the contract by backing off investment commitments. However, the company argues that investments were always subject to market conditions, and demand for electric vehicles has slowed since the deal was signed.
In the lawsuit, the company claims that the union acted in bad faith by disregarding contractual language, filing grievances, and calling for a strike authorization vote to pressure the automaker to proceed with planned investments.
The union president responded by accusing the company of launching a misinformation campaign to confuse members about their right to authorize a strike. He called the lawsuit and other company actions “desperate” and expressed confidence in the union’s right to strike.
The union leader also argued that the company’s CEO wants to make significant cuts to its underperforming US operations. He stated that the union would not allow the company to violate their agreement and threaten jobs, plants, and communities.
As part of the contract signed last year, the automaker had agreed to invest $1.5 billion in an assembly plant to build new mid-size trucks by 2027, which was part of a larger $19 billion investment plan. The company has since acknowledged delaying some investments due to economic conditions but maintains that it stands by its commitment.
The dispute highlights ongoing tensions between automakers and unions as the industry navigates economic challenges and the transition to electric vehicles.