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Carlos Tavares, CEO of Stellantis NV, speaks to the media at the Stellantis automobile factory in Sochaux, France, Thursday, October 3, 2024.
Nathan Lainé | Bloomberg | Getty Images
DETROIT — Stellantis is suing the United Auto Workers union, escalating a months-long battle between the transatlantic automaker and the U.S. union, CNBC has learned.
In an internal message to employees Friday, confirmed to be authentic, the company said it was suing the UAW and a California local that participated in a vote on a labor demand. strike authorization at the Stellantis parts distribution center in Los Angeles.
“This lawsuit would hold both International and the local union responsible for lost revenue and other damages resulting from lost production due to an illegal strike,” said Tobin Williams, senior vice president of human resources. of Stellantis for North America, in the message.
The lawsuit seeks to “prevent and/or cure a breach of contract” by the UAW, according to a copy of the complaint filed Thursday in the U.S. District Court for the Central District of California.
A large majority of UAW members at the Stellantis parts distribution center in Los Angeles voted to seek strike authorization from the International Executive Board if the company and union cannot reconcile, the union said. union. said Friday morning.
The UAW did not immediately respond to a request for comment Friday afternoon regarding the lawsuit.
United Auto Workers (UAW) President Shawn Fain speaks to attendees at a campaign rally for U.S. Vice President and Democratic presidential candidate Kamala Harris and her running mate Tim Walz in Romulus, Michigan, United States, August 7, 2024.
Rebecca Cook | Reuters
The dispute between the two sides centers on the union alleging that Stellantis failed to meet its contractual obligations under a deal the two sides reached late last year. This comes after Stellantis made several reductions in factory production, carried out layoffs and delayed potential investments outlined under the 2023 contract.
The automaker argued, including in Friday’s letter to employees, that the contract contains provisions allowing it to change its plans based on market conditions, factory performance and other factors.
UAW President Shawn Fain has regularly said the union would strike if necessary, but Stellantis argued that would be illegal under the contract.
This is breaking news. Please check back for additional updates.