financetom
Business
financetom
/
Business
/
Stellantis files new lawsuits against United Auto Workers union
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Stellantis files new lawsuits against United Auto Workers union
Oct 7, 2024 7:24 AM

WASHINGTON/DETROIT, Oct 7 (Reuters) -

Chrysler parent Stellantis ( STLA ) said on Monday it has

filed eight additional lawsuits against the United Auto Workers

and 23 local units, saying the union has violated its contract

by threatening to strike over the company's delays in planned

investments.

Stellantis ( STLA ) had filed suit on Thursday against the UAW and

UAW Local 230 in Los Angeles over the union's decision to take a

strike authorization vote, saying it violates terms of the

contract reached last fall.

UAW members at Stellantis' ( STLA ) Los Angeles parts distribution

center on Thursday voted to request strike authorization if the

company and union can't settle a grievance over planned company

investments.

The Italian-American automaker said the new suits prompted a

meeting with the UAW on Saturday that proposed reinstituting a

concept called the Jobs Bank, which generally prohibited the

Detroit Three automakers from laying off employees. The

automaker called it "a contributing factor to the automaker's

bankruptcy in 2009" and rejected the proposal, saying it "would

jeopardize the company's future."

The UAW did not immediately comment on Monday but UAW

President Shawn Fain has argued that the company violated the

contract by backing off the investment commitments. The company

contends that the investments were always subject to market

conditions and that demand for electric vehicles has slowed.

Stellantis ( STLA ) agreed in 2023 as part of the UAW contract to

invest $1.5 billion in its shuttered Belvidere, Illinois,

assembly plant to build new mid-size trucks by 2027 - part of

$19 billion in overall investment plans.

Stellantis ( STLA ) acknowledged in August delaying some investments

because of economic conditions but said it "firmly stands by its

commitment."

The UAW wants to reinstate the Jobs Bank for employees

in Belvidere and 900 employees who transferred from Belvidere

and are working elsewhere. Under the 2023 contract, employees

awaiting resumption of work at Belvidere get 74% of pay and full

healthcare benefits, Stellantis ( STLA ) said.

Harley Shaiken, a labor professor emeritus at the

University of California, Berkeley, said the protection of the

Belvidere plant in last fall's contract was key for the union.

"Stellantis ( STLA ) is really drawing a line in the sand and

taking a tough position and intends to fight this aggressively.

The cost of that is the relationship with the union, which is

heading downhill fast," Shaiken said.

The Energy Department in July said it plans to award

Stellantis ( STLA ) $334.8 million to convert the Belvidere Assembly

plant to build EVs but that award is still not final.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Hutchmed Begins Registration Stage for Phase 2/3 Trial of Investigational Autoimmune Disorder Drug
Hutchmed Begins Registration Stage for Phase 2/3 Trial of Investigational Autoimmune Disorder Drug
Mar 22, 2024
05:04 AM EDT, 03/22/2024 (MT Newswires) -- Hutchmed ( HCM ) said late Thursday it has started the registration stage for a phase 2/3 clinical trial of investigational drug sovleplenib for adult patients with warm antibody autoimmune hemolytic anemia in China. The move follows positive data from the proof-of-concept phase 2 stage of the trial and a consultation with the...
Once a beacon of stability, Vietnam to name third president in a year
Once a beacon of stability, Vietnam to name third president in a year
Mar 22, 2024
HANOI, March 22 (Reuters) - Communist-ruled Vietnam is seeking its third president in little more than a year after the resignation of Vo Van Thuong, who was only elected last year after the sudden dismissal of his predecessor. With accumulated foreign direct investment higher than its gross domestic product, Vietnam's stability is crucial to multinationals with large operations in the...
Japan's union group Rengo announces biggest wage hikes on record
Japan's union group Rengo announces biggest wage hikes on record
Mar 22, 2024
TOKYO (Reuters) -Japanese firms have agreed to raise pay by 5.25% this year, the biggest rise under comparable data since 2013, the country's largest union group Rengo confirmed on Friday. The results of the closely-watched wage negotiations are announced in several stages, in which the blue-chip firms are first to wrap up their talks in mid-March. The second announcement on...
Cathie Wood's ARK Invest scoops up nearly 10,000 Reddit shares in debut
Cathie Wood's ARK Invest scoops up nearly 10,000 Reddit shares in debut
Mar 22, 2024
(Reuters) - Popular investor Cathie Wood's ARK Invest bought nearly 10,000 shares of Reddit ( RDDT ) in the social media platform's strong market debut on Thursday, an email from the asset manager showed. A total of 9,982 shares of the loss-making company was added to ARK Next Generation Internet ETF ( ARKW ) and ARK Fintech Innovation ETF (...
Copyright 2023-2026 - www.financetom.com All Rights Reserved