Chrysler parent company Stellantis filed a federal lawsuit against the United Auto Workers (UAW), accusing the union of violating its contract by threatening to strike over delays in planned investments.
Stellantis submitted the suit to the U.S. District Court in the Central District of California, seeking a ruling that UAW Local 230’s strike authorization vote in Los Angeles violates the terms of the contract agreed upon last fall.
Stellantis aims to hold the UAW and its local chapter responsible for any potential revenue losses and damages that could arise from production disruptions due to a strike. A supermajority of UAW members at Stellantis’ Los Angeles parts distribution center voted on Thursday to request strike authorization if the company and union cannot resolve their dispute over the automaker’s delayed investments.
UAW President Shawn Fain accused Stellantis of violating the contract by failing to follow through on its investment commitments. However, Stellantis countered, arguing that the investments were contingent upon market conditions, which have shifted due to slowing demand for electric vehicles since the deal was signed.
In the lawsuit, Stellantis claimed the UAW acted in bad faith by disregarding these conditions, filing grievances that the company calls “sham,” and organizing a strike authorization vote to pressure Stellantis into moving forward with the planned investments. Fain responded to the lawsuit in an email to UAW members on Friday, accusing Stellantis of launching an “all-out misinformation campaign” to intimidate and confuse workers about their right to authorize a strike. He labeled Stellantis’ actions as “desperate” and assured members that the union’s legal team has “complete confidence” in their right to strike.
Fain also alleged that Stellantis CEO Carlos Tavares is pushing for deep cuts in the company’s underperforming U.S. 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 defiant. We will do whatever it takes to enforce our contracts and protect American jobs,” Fain declared.
In 2023, Stellantis agreed to invest $1.5 billion in its Belvidere, Illinois, assembly plant to build new mid-size trucks by 2027, as part of a broader $19 billion investment plan. Although Stellantis acknowledged in August that it is delaying some of those investments due to economic factors, the company insists it “firmly stands by its commitment.”
The U.S. Department of Energy announced in July that it plans to award Stellantis $334.8 million to convert the shuttered Belvidere Assembly plant for electric vehicle (EV) production and an additional $250 million to transform its Indiana Transmission Plant in Kokomo for EV component production. However, those awards remain pending final approval.
