Carlos Tavares, CEO of Stellantis NV, speaks to the media at the Stellantis automobile manufacturing plant in Sochaux, France, Thursday, October 3, 2024.
Natan Laine | Bloomberg | fake images
DETROIT— stellantis is suing the United Auto Workers, escalating a months-long battle between the transatlantic automaker and the U.S. union, CNBC has learned.
In an internal message Friday to employees that was confirmed to be authentic, the company said it is suing the UAW, as well as a local chapter in California that participated in a strike authorization request vote at the Distribution Center. Stellantis parts store in Los Angeles.
“This lawsuit would hold both the international and local unions liable for lost revenue and other damages resulting from lost production due to an illegal strike,” Tobin Williams, senior vice president of human resources for Stellantis in North America, said in the message. .
A large majority of UAW members at the Stellantis Parts Distribution Center in Los Angeles voted to request strike authorization from the International Executive Board if the company and the union cannot reconcile, the union said Friday morning. .
United Auto Workers (UAW) President Shawn Fain speaks to attendees during a campaign rally for US Vice President and Democratic presidential candidate Kamala Harris and her running mate Tim Walz in Romulus, Michigan, USA, on August 7, 2024.
Rebeca cooking | Reuters
The lawsuit aims to “prevent and/or remedy a breach of contract” by the UAW, according to a copy of the lawsuit filed Thursday in the U.S. District Court in the Central District of California.
The lawsuit contends that if the union strikes, the court “should award Stellantis monetary damages” resulting from a breach of contract.
UAW President Shawn Fain addressed the lawsuit Friday in a letter to Stellantis union officials. He called this and other actions by the company “desperate actions by a desperate executive who has lost control.”
“Our legal team has complete confidence in our right to strike. The company's legal threats are just that: threats intended to intimidate us into not fighting back,” Fain said.
The dispute between the two sides centers on the union alleging that Stellantis failed to meet its contractual obligations as part of an agreement the two sides reached late last year. It comes after Stellantis made several cuts to plant production, laid off workers and delayed potential investments outlined as part of the 2023 contract.
Fain has routinely said the union will strike if necessary, however Stellantis has argued that would be illegal under the contract.
The automaker has maintained that there are terms in the contract that give it leniency to change plans based on market conditions, plant performance and other factors.
The company reiterated that stance in its lawsuit, citing the “311 Letter,” which includes the company's expected investments: “Future investments planned in the letter are conditional, require the company's approval, and are subject to change based on these commercial factor contingencies.
The lawsuit came the same day Fain and union members held their final rally against Stellantis in suburban Detroit.
“We are here today for a reason. Stellantis CEO Carlos Tavares is out of control and once again it is up to UAW members to save this company from itself,” Fain said during the event. “A strike will paralyze this company. And if we have to strike, it is Stellantis's decision to do so because they are not fulfilling their commitment.”
The union and several local chapters have filed complaints against the automaker regarding contractual obligations and other issues.
Stellantis, in the lawsuit, called the complaints a sham designed to “justify mid-contract strikes against Stellantis that would otherwise violate the [contract’s] “No strike clause.”
