Stellantis reportedly has filed suit against the United Auto Workers of America and a local UAW chapter, aiming to “prevent and/or remedy a breach of contract” according to a copy of the complaint filed by the automaker in U.S. District Court in California. The automaker contends that the union is seeking to undo the labor agreement that the two sides reached in October 2023 through allegations that the company has violated last year’s contract, claims that led to the UAW filing an unfair labor practices complaint with the National Labor Relations Board in September.
“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,” according to senior vice president of North American human resources Tobin Williams, in a memo to Stellantis employees.
The UAW’s side of the argument is that Stellantis has not fulfilled its contractual obligation to invest in an electric-vehicle battery and assembly operation at the idled Jeep plant in Belvidere, Ill. It also contends that Stellantis, in violation of the contract, intends to move Dodge Durango assembly from the Detroit Assembly Complex to the Windsor (Ont.) Assembly Plant for the 2026 model year.
In a statement responding to UAW president Shawn Fain following a union rally at the Sterling Heights (Mich.) Stamping Plant, Stellantis listed a series of “facts” that said confirm its commitment to new “investments and timelines are not absolute guarantees” – while noting the 2023 contract establishes these commitments are subjective to “business factor contingencies.”
The automaker restated its commitment to investing in its U.S. operations, but pointed to “indisputable volatility in the market, especially as the industry transitions to an electrified future.”
“Let me be crystal clear, we have abided by and will continue to abide by the 2023 collective bargaining agreement,” Stellantis North America COO Carlos Zarlenga concluded. “It is in everyone’s best interest to have a healthy company that can compete in a global marketplace. This is a time for us to work together, not against each other.”
