Stellantis' Legal Battle Against UAW Escalates Amid Strike Authorization Dispute
ICARO Media Group
### Stellantis Launches Legal Battle Against UAW Amid Growing Tensions
Stellantis has taken legal action against the United Auto Workers (UAW), marking an intensification of the ongoing conflict between the global automaker and the American labor union. An internal message to Stellantis employees, verified by CNBC, confirmed the lawsuit filed against the UAW and a local chapter in California. The case relates to a vote for strike authorization at Stellantis' Los Angeles Parts Distribution Center.
According to Tobin Williams, Stellantis' Senior Vice President of North America Human Resources, the lawsuit aims to hold both the International and local union responsible for losses incurred from what the company deems an unlawful strike. The complaint, officially filed Thursday in the U.S. District Court in the Central District of California, seeks to "prevent and/or remedy a breach of contract" by the UAW and demands monetary damages if a strike occurs.
On Friday morning, a substantial majority of UAW members at the Los Angeles facility voted to seek strike authorization from the union's International Executive Board if a resolution with the company remains unachieved. Stellantis' lawsuit argues that their contract provides flexibility based on market conditions and other variables, invoking "Letter 311," which outlines the conditional and approval-dependent nature of planned future investments.
Stellantis claims it had to make several operational decisions due to market pressures, including plant production cuts and workforce reductions—actions the UAW argues contradict the agreement signed late last year. UAW President Shawn Fain asserted that the union is prepared to strike if necessary, blaming Stellantis' alleged non-compliance with contractual commitments. However, Stellantis maintains that the contract's language supports their actions.
Several grievances have been filed by the UAW and its local chapters against Stellantis concerning these contract issues. Stellantis, in its legal filing, described these grievances as a tactic to "justify mid-contract strikes against Stellantis that otherwise would violate the contract’s no-strike clause."
The ongoing discord reached a critical point the same day as the lawsuit, with Fain and UAW members staging a rally in suburban Detroit. Criticizing Stellantis CEO Carlos Tavares, Fain declared, "A strike will cripple this company. And if we have to strike, it’s Stellantis’ decision to do so because they are not honoring their commitment."
This legal confrontation adds a significant chapter to the protracted dispute, raising the stakes for both Stellantis and the UAW as they navigate their contentious relationship.