Stellantis has filed lawsuits against the UAW over threats by the labour union to take strike action over what it sees as backtracking by the company on investment promises made as part of a new labour agreement.
Stellantis maintains the UAW is now proposing what amounts to a reinstatement of the ‘Jobs Bank’ not only for employees in Belvidere (the investment plans for which are at the heart of the dispute), but for approximately 900 employees who transferred from Belvidere and are working at other locations.
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For that reason, Stellantis said it rejected the UAW’s latest proposal because it would revert to prebankruptcy terms and conditions that would jeopardise the company’s future.
The company also said it understands that this situation is extremely unsettling for its Belvidere employees, which is why it agreed during 2023 negotiations to place these employees on temporary layoffs, which provide 74% of pay and full healthcare benefits.
More than a dozen local UAW unions covering tens of thousands of Stellantis workers have filed grievances against the company’s attempt to allegedly back out of a commitment to reopen Belvidere Assembly and other violations of the product and investment commitments secured in the UAW’s Stand Up Strike last year, the union said.
Stellantis agreed to build a new $3.2 billion battery plant and invest $1.5 billion in a new mid-size truck factory in Belvidere, Illinois.
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By GlobalDataStellantis says it has repeatedly stated that the plans for Belvidere have been delayed – not cancelled. At the same time, the company maintains it will not consider reestablishing contract provisions that directly contributed to the bankruptcies of two of the “Big 3.”
Stellantis maintains its position that any call for a strike by the UAW would be illegal.
If necessary, the company said it intends to see this litigation through to conclusion and will hold the UAW and its locals responsible for lost revenue, which could amount to tens of millions a day, and other damages resulting from lost production due to an unlawful strike.
Stellantis also said remains available to meet with the UAW to discuss these issues in the best interests of its employees.
