On Thursday, October 3, 2024, Carlos Tavares, the chief executive officer of Stellantis NV, addressed the media at the company’s auto manufacturing plant in Sochaux, France.
In a significant development, Stellantis has initiated legal action against the United Auto Workers (UAW), intensifying an ongoing dispute with the American union, according to information obtained by CNBC. The automaker revealed its decision to sue the UAW and a local chapter in California in an internal message to employees, which was confirmed as authentic. This action relates to a strike authorization request vote held at Stellantis’ Los Angeles Parts Distribution Center.
Tobin Williams, Stellantis’ senior vice president of North America human resources, stated in the message that the lawsuit aims to hold both the international union and the local chapter accountable for revenue losses and other damages attributed to what the company contends is an unlawful strike.
The lawsuit, filed on Thursday in the U.S. District Court for the Central District of California, is designed to “prevent and/or remedy a breach of contract” by the UAW. The UAW announced that a supermajority of its members at the Los Angeles Parts Distribution Center voted in favor of requesting strike authorization from the International Executive Board if the company and union cannot reach an accord.
As of Friday afternoon, the UAW had not responded to a request for comment on the lawsuit.
The contention between Stellantis and the union revolves around allegations that Stellantis has not fulfilled its contractual obligations under an agreement reached late last year. This follows Stellantis’ recent cuts to plant production, layoffs, and delays in potential investments as outlined in the 2023 contract.
Stellantis has argued, particularly in its communication to employees, that the contract includes provisions allowing the company to amend plans based on market conditions, plant performance, and other variables. While UAW President Shawn Fain has consistently asserted that the union is prepared to strike if necessary, Stellantis maintains that such action would be unlawful under the current contract terms.
This is a developing story, with additional updates expected.
