Carlos Tavares, chief executive officer of Stellantis NV, speaks to the media at the Stellantis auto manufacturing plant in Sochaux, France, on Thursday, Oct. 3, 2024.
Nathan Laine | Bloomberg | Getty Images
DETROIT — Stellantis is suing the United Auto Workers, escalating a monthslong battle between the transatlantic automaker and American union, CNBC has learned.
In an internal message Friday to employees that was confirmed to be authentic, the company said it is suing the UAW as well as a local chapter in California that participated in a strike authorization request vote at Stellantis’ Los Angeles Parts Distribution Center.
“This lawsuit would hold both the International and the local union liable for the revenue loss and other damages resulting from lost production due to an unlawful strike,” Tobin Williams, Stellantis senior vice president of North America human resources, said in the message.
The lawsuit is intended to “prevent and/or remedy a breach of contract” by the UAW, according to a copy of the complaint that was filed Thursday in U.S. District Court in the Central District of California.
A supermajority of UAW members at Stellantis’ Los Angeles Parts Distribution Center voted to request strike authorization from the International Executive Board if the company and union can’t reconcile, the 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 the attendees during a campaign rally for U.S. Vice President and Democratic Presidential candidate Kamala Harris and her running mate Tim Walz in Romulus, Michigan, U.S., August 7, 2024.
Rebecca Cook | Reuters
The dispute between the two sides centers on the union alleging Stellantis has not kept contractual obligations as part of a deal the two sides reached late last year. It comes after Stellantis has made several cuts to plant production, conducted worker layoffs and delayed potential investments outlined as part of the 2023 contract.
The automaker has argued, including in the Friday letter to employees, that there’s language in the contract that gives it leniency to change plans based on market conditions, plant performance and other factors.
UAW President Shawn Fain has routinely said the union will strike if needed, however Stellantis has argued that would be unlawful under the contract.
This is breaking news. Please check back for additional updates.