Written by David Shepardson and Ben Klayman
WASHINGTON/DETROIT (Reuters) – Stellantis, the parent company of Chrysler (NYSE:), has filed a federal lawsuit against the United Auto Workers, saying the union violated a contract by threatening to strike over the company’s delay in a planned investment.
The automaker filed the lawsuit on Thursday asking the U.S. District Court for the Central District of California to declare that a decision by a local union in Los Angeles to hold a strike authorization vote violates the terms of a contract reached last fall.
Stellantis seeks to hold the UAW and the local union branch liable for any potential loss of revenue and other damages resulting from loss of production due to any strike.
On Thursday, an overwhelming majority of UAW members at Stellantis’ parts distribution center in Los Angeles voted to request strike authorization if the company and the union could not settle a grievance over the company’s planned investments.
UAW President Sean Fine said the company violated the contract by backing out of investment commitments, but the company said any investments are always subject to market conditions and demand for electric vehicles has slowed since the deal was signed.
“The UAW acted in bad faith by ignoring this language, filing false complaints, and calling a strike authorization vote to pressure Stellantis to move forward with planned investments,” the company said in the lawsuit.
The UAW did not immediately comment on the lawsuit.
In 2023, Stellantis agreed as part of the contract with the union to invest $1.5 billion in its Belvidere, Illinois, assembly plant to build new midsize trucks by 2027. This was part of the automaker’s $19 billion overall investment plans.
Stellantis acknowledged last August that some investments had been delayed due to economic conditions, but said it “firmly adheres to its commitment,” saying the new timeline was necessary “to ensure the company’s competitiveness and sustainability in the future.”
The contract includes language that Stellantis’ product investments “depend on plant performance, changes in market conditions and consumer demand,” the company said.
In August, the UAW said some of its local units representing tens of thousands of Stellantis workers were preparing to file grievances and could begin a nationwide strike, accusing the automaker of failing to honor production commitments.