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.