The dispute, which has been going on for months, has now turned into a full-fledged legal battle by becoming a “clause versus clause.” So, Stellantis Group has taken legal action against United Auto Workers, as reported by CNBC, intensifying a long-running dispute between the company and the union. In an internal memo, the company confirmed its intention to sue both the UAW nationally and a California-based local branch of it.
Stellantis sues UAW for breach of contract
This war between Stellantis and the UAW is becoming increasingly bitter. Escalating a months-long labor conflict, Stellantis announced that it has filed a lawsuit against the United Auto Workers. This decision was communicated to employees through an internal message, in which the company specified that it plans to sue both the UAW nationally and a local California-based branch, which played an active role in voting to authorize the strike at the Los Angeles parts distribution center.
At the core issue of the dispute between Stellantis and the UAW is the interpretation from a collective bargaining agreement signed late last year. The automaker has filed a lawsuit against the union, claiming that any strike by workers at the Los Angeles Parts Distribution Center would be illegal and in violation of contractual agreements.
Stellantis and UAW accuse each other of breach of contract
The union authorized the Los Angeles Parts Distribution Center workers to request strike authorization, claiming that Stellantis would not meet its contractual obligations by making production cuts and layoffs. The automaker, for its part, argued that the contract contains a clause allowing it to change operating plans based on market conditions and that a strike would be unlawful and cause substantial economic damage.
By Tobin Williams, Stellantis senior vice president of human resources for North America, claimed that both the International UAW and the local union are liable for economic damages resulting from any disruption in production.
That is because the Stellantis automotive group pointed out that the contract contains a clause that allows it to change operating plans based on certain factors, while the UAW claims that the company would not meet its contractual obligations by making production cuts and layoffs. UAW President Shawn Fain has repeatedly stated that the union is ready to strike if necessary, but – again – Stellantis has challenged the legitimacy of such action.
Certainly the current situation does not look easy to handle in any respect. The union, is faced with a company like Stellantis that knows perfectly well how to defend itself against accusations by presenting the contractual items involved in the diatribe. Besides, the union wants at all costs to be helpful to the American citizens, trying to speed up the processes that Stellantis seems to have put completely aside for the time being. Finally, we find those who are probably most affected by the affair, namely the workers. Indeed, all those who are affected find themselves having to wait for the blows to be exchanged between Stellantis and the UAW, with the hope of returning as quickly as possible to a stable and carefree life.