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Stellantis files new lawsuits against United Auto Workers union
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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.

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