After filing its initial lawsuit against the UAW and UAW Local 230 representing the Los Angeles Parts Distribution Center on Oct. 3, Stellantis filed eight additional lawsuits against the UAW and 23 Local unions on Oct. 4, prompting a meeting with the UAW on Saturday. The UAW proposed reinstituting a concept called the Jobs Bank, a contributing factor to the automaker’s bankruptcy in 2009.
The Jobs Bank, established by GM in the mid-80s and adopted by Ford and Chrysler due to pattern bargaining, generally prohibited the Detroit automakers from laying off employees. By the 2000s, Chrysler had over 2,000 employees in the Jobs Bank at a staggering cost. These employees were on active payroll, but were not allowed to perform any production work.
The UAW is now proposing what amounts to a reinstatement of the Jobs Bank not only for employees in Belvidere, but for approximately 900 employees who transferred from Belvidere and are working at other locations.
For that reason, the company rejected the UAW’s latest proposal because it would revert to prebankruptcy terms and conditions that would jeopardize the company’s future.
The company understands that this situation is extremely unsettling for its Belvidere employees, which is why it agreed during 2023 negotiations to place these employees on temporary layoffs, which provide 74% of pay and full healthcare benefits.
The company has repeatedly stated that the plans for Belvidere have been delayed – not cancelled. At the same time, the company will not consider reestablishing contract provisions that directly contributed to the bankruptcies of two of the “Big 3.”
Stellantis maintains its position that any call for a strike by the UAW would be illegal. The language in Investment Letter 311 is clear. 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.
If necessary, the company intends to see this litigation through to conclusion and will hold the UAW and its locals responsible for lost revenue, which could amount to tens of millions a day, and other damages resulting from lost production due to an unlawful strike.
The company remains available to meet with the UAW to discuss these issues in the best interests of its employees.
SOURCE: Stellantis
