Stellantis hits back at UAW with federal lawsuit as tensions escalate

Stellantis hits UAW with federal lawsuit

Stellantis filed the legal action after a UAW Local in California decided to call for a strike authorization vote to deal with ongoing grievances.

FOX 2 (WJBK) - It’s a major escalation of tensions between the UAW and Stellantis.

Stellantis, the parent company of the Chrysler and Dodge, filed a federal lawsuit against the United Auto Workers Union.

It is accusing the UAW of a contract violation with their threat to strike over delayed company investments both sides originally agreed to nearly one year ago.

"This is an incredibly aggressive move," said Jan Griffiths.

Griffiths is a former auto supply chain executive who writes about what she calls a need to change the "us verses them" culture in the auto industry - something playing out on a dramatic scale in this case.

"There is clearly fear in the air in the air at Stellantis," she said. "The third quarter sales are down 20 percent in the US. The share price is down 40 percent this year. Dealers are not happy. Shareholders are clearly not happy."

Stellantis filed the legal action after a UAW Local in California decided to call for a strike authorization vote to deal with ongoing grievances.

The automaker says that the Local and Solidarity House in Detroit would be responsible for lost revenues stemming from lost production that would come from such a protest.

"They want you to think that a strike won’t hurt. Let me assure you on one thing - a strike will cripple this company," said UAW President Shawn Fain.

The UAW is fighting back after holding their "Keep the Promise Rally and March" on Thursday.

It is demanding Stellantis to honor $19 billion in investments that translate into tens of thousands of union jobs - along with the right to strike if Stellantis drops their end of the bargain.

"If we have to strike, it’s Stellantis’ decision to do so because they’re not honoring our commitment," Fain said.

"So in the UAW’s eyes, they’re simply following through on the agreement but Stellantis is saying wait, that was based on a certain sales number and certain market conditions," Griffiths said. "And those market conditions are not where they expected them to be."