Stellantis Sues UAW Over Strike Threats, Alleging Contract Violation

Stellantis, the parent company of Chrysler, has filed a federal lawsuit against the United Auto Workers (UAW), accusing the union of breaching its contract by threatening a strike over delays in planned company investments. The automaker filed the suit on Thursday in the U.S. District Court for the Central District of California, seeking to halt the UAW’s strike actions.

The legal action centres on UAW Local 230 in Los Angeles, where union members recently voted in favour of a strike authorization if the company fails to resolve a grievance tied to investment commitments. Stellantis argues that this vote violates the contract agreement reached between the company and the UAW last fall. The automaker is seeking to hold the union liable for any financial losses resulting from potential work stoppages.

UAW President Shawn Fain has accused Stellantis of reneging on its agreement to invest in U.S. operations, including a $1.5 billion commitment to revamp its Belvidere, Illinois, plant to produce mid-size trucks by 2027. However, Stellantis contends that the investment was always dependent on market conditions, particularly the demand for electric vehicles, which the company says has weakened since the deal was signed.

In its lawsuit, Stellantis claims the UAW acted in bad faith by ignoring contractual language that tied investments to market conditions. The company further alleges that the union filed “sham grievances” and staged the strike authorization vote to pressure Stellantis into proceeding with the planned investments.

Responding to the lawsuit, Fain accused Stellantis of launching a misinformation campaign to intimidate union members and undermine their right to strike. He described the legal move as a “desperate action” and stated that the union’s legal team is confident in their right to authorize a strike if necessary.

Fain also took aim at Stellantis CEO Carlos Tavares, accusing him of attempting to make drastic cuts to the company’s underperforming U.S. operations. “We will not allow this company to violate our agreement and threaten American jobs,” Fain declared, pledging to take action to protect workers and their communities.

The dispute comes amid broader economic uncertainty, with Stellantis acknowledging in August that it is delaying some investment plans due to market conditions. The U.S. Department of Energy has tentatively pledged over $580 million in funding to help the company convert plants in Illinois and Indiana for electric vehicle production, though the awards are not yet finalized.