Oct 7, 2024, 10:53 AM
Oct 7, 2024, 10:53 AM

Stellantis rejects UAW's Jobs Bank proposal amid legal battles

Provocative
Highlights
  • Stellantis filed eight lawsuits against the UAW and 23 local unions after a strike authorization vote at its Los Angeles facility.
  • The automaker rejected the UAW's proposal to restore the Jobs Bank concept, which it claims contributed to its previous bankruptcy.
  • Stellantis warns that any strike would be illegal and is prepared to pursue litigation for lost revenue and damages.
Story

In the United States, Stellantis has recently filed multiple lawsuits against the UAW and 23 local unions following a vote by Local 230 members at the Los Angeles Parts Distribution Center to seek strike authorization. The automaker rejected a proposal from the UAW to restore the Jobs Bank concept, which it claims contributed to its bankruptcy in 2009. The Jobs Bank, originally established by GM, allowed employees to remain on payroll without performing production work, leading to significant costs for the company. Stellantis argues that reinstating such provisions would jeopardize its future, especially for employees at the Belvidere Assembly Plant in Illinois, which has faced temporary layoffs. The company has assured that plans for Belvidere are delayed but not canceled, emphasizing its commitment to protecting its workforce amid a volatile market. Stellantis maintains that any strike called by the UAW would be illegal, citing clear contractual language that allows for necessary changes in response to market conditions. The automaker is prepared to pursue litigation to recover lost revenue and damages resulting from potential strikes, which could amount to millions daily.

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