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Stellantis is taking legal action against the United Auto Workers in an ongoing dispute between the automaker and the American union. The company announced that it is suing the UAW and a local chapter in California over a strike authorization vote at Stellantis’ Los Angeles Parts Distribution Center. The lawsuit aims to hold both the International and local union accountable for revenue loss and damages resulting from an alleged unlawful strike.
The UAW members at Stellantis’ Los Angeles Parts Distribution Center voted to request strike authorization if reconciliation between the company and the union is not achieved. The complaint filed in U.S. District Court in California seeks to prevent or remedy a breach of contract by the UAW and to claim monetary damages in case of a strike.
The dispute arises from the union’s claims that Stellantis has not fulfilled contractual obligations outlined in a previous agreement. Stellantis has made cuts to plant production, conducted layoffs, and delayed investments as part of the 2023 contract. While the union has threatened to strike if necessary, Stellantis argues that such action would be unlawful under the contract terms.
The automaker maintains that it has the flexibility to adjust plans based on market conditions and performance factors. The lawsuit references “Letter 311,” which details conditional investments subject to business contingencies. The legal action coincided with a rally against Stellantis held by UAW President Shawn Fain and union members in suburban Detroit.
Several local chapters have filed grievances against Stellantis regarding contract obligations and other disputes. The company dismisses these grievances as a pretext for organizing strikes that violate the contract’s no-strike clause.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.