Stellantis Rejects UAW Jobs Bank Proposal, Files Multiple Lawsuits

Stellantis has escalated its legal battle with the United Auto Workers (UAW), rejecting a proposal to reinstate the controversial Jobs Bank program while filing multiple lawsuits against the union. The conflict stems from delayed plans to reopen the Belvidere Assembly Plant, along with accusations that Stellantis may shift production of the Dodge Durango out of the U.S. The automaker’s first lawsuit, filed on October 3, 2024, targeted UAW Local 230 in Los Angeles after workers voted to authorize a strike. By October 4, Stellantis had filed eight more lawsuits against the UAW and 23 local unions.

Stellantis’ Position on UAW Strikes and Plant Investments –

Tobin Williams, Senior Vice President of North America Human Resources at Stellantis, addressed the situation in an October 4 email to employees. He emphasized that the company had “no choice” but to take legal action to prevent an unlawful strike that could result in significant revenue loss and production delays. “The union left Stellantis with no choice but to take the necessary steps to protect the company and our employees,” Williams said, highlighting the automaker’s position.

Stellantis maintains that its plant investments, including those related to the Belvidere Assembly Plant, are subject to approval by its product allocation committee and depend on market conditions and plant performance. According to Stellantis, these decisions are vital for “sustainable and profitable volumes” in a rapidly changing market, especially given the slowing adoption of electric vehicles (EVs).

UAW’s Push for Belvidere Assembly and Jobs Bank Restoration –

The UAW, led by President Shawn Fain, has been adamant about holding Stellantis accountable for its commitments. Fain criticized the automaker’s leadership, stating, “It is gross mismanagement by top executives that is killing this company.” He also called out Stellantis’ stock buyback practices, asserting that the company had spent $3 billion on buybacks this year alone, while rejecting the UAW’s proposal to reopen Belvidere Assembly, which he argued would cost “a fraction of that.”

The UAW also proposed restoring the Jobs Bank, a program originally established by GM in the mid-1980s and later adopted by Ford and Chrysler. The program prevented layoffs by keeping employees on payroll, even if no production work was available. Stellantis, however, has rejected this proposal, claiming it would revert the company to pre-bankruptcy policies that contributed to the 2009 bankruptcies of two of Detroit’s Big-3 automakers.

Kevin Gotinsky, UAW Stellantis Department Director, refuted Stellantis’ comparison of the current contract with the Jobs Bank program of the past. He argued that if Stellantis follows through with its commitments to reopen Belvidere and build a parts Megahub, the company could easily put its workers back to work. “These employees can and are willing to perform work today. That is all they want, to have a future and be able to provide for their families as agreed to in our contract,” Gotinsky said.

Legal Battle Intensifies with More Lawsuits –

Stellantis has doubled down on its legal approach, filing a total of nine lawsuits against the UAW and several local unions. The automaker contends that any strike over plant investments would be illegal, citing clear language in Investment Letter 311 that allows the company to adapt its investment plans based on market conditions and performance. Stellantis argues that the UAW, led by Fain, is attempting to force the automaker into investments without regard for business realities.

“The decisions that are being taken to protect the company and its employees from a highly volatile market and slowing EV adoption cannot be a matter of legitimate dispute,” the Stellantis lawsuit claims.

What’s Next for Stellantis, UAW, and Belvidere Assembly? –

While Stellantis remains committed to reopening the Belvidere plant, it has delayed its timeline and rejected any attempts to reinstate pre-bankruptcy contract provisions, such as the Jobs Bank. Stellantis argues that it has already taken significant steps to support Belvidere employees, offering temporary layoffs that provide 74% of pay and full healthcare benefits.

Fain, however, remains firm in his stance, warning that if necessary, the UAW will “strike again to make Stellantis keep the promise.” The union continues to push for Stellantis to meet its contractual obligations, and more local unions may authorize similar strike votes in the near future.

As the legal and labor dispute unfolds, both sides are preparing for the potential fallout, with millions of dollars in revenue and the future of thousands of workers at stake. Stellantis insists that any strike would be illegal, while the UAW stands ready to take further action to secure job protections and plant investments for its members.