Stellantis rejects UAW proposal to restore Jobs Bank concept, files 8 additional lawsuits
(CBS DETROIT) - After Stellantis filed its initial lawsuit against the UAW, the automaker filed eight more lawsuits against the UAW and 23 local unions. Stellantis also rejected the union's proposal to restore the Jobs Bank concept, which the automaker says contributed to its bankruptcy in 2009.
The initial lawsuit was filed Thursday after a supermajority of Local 230 members at Stellantis' Los Angeles Parts Distribution Center UAW workers voted to request strike authorization from the UAW's International Executive Board.
On Friday, Stellantis filed eight more lawsuits against the UAW and 23 local unions, which prompted a meeting between the UAW and the automaker.
The union proposed restoring the Jobs Bank concept, according to a release from Stellantis.
"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," the automaker said. "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."
Stellantis says the union proposes restoring the Jobs Bank for employees at the Belvidere Assembly Plant in Illinois and 900 workers who transferred from Belvidere and are working at other facilities.
The UAW's proposal was rejected because Stellantis says it would return to prebankruptcy terms that would threaten the automaker'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," said Stellantis. "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."
This dispute between Stellantis and the UAW goes back to August when the union said it was prepared to file grievances after claiming the automaker didn't keep its commitments regarding reopening the Belvidere plant, which was idled in 2023.
The union claimed Stellantis was being "unreceptive" in discussions about reopening the plant. Still, Stellantis says the language in Letter 311 of the contract is clear and allows room for the automaker to make some changes regarding its future investments.
"Stellantis maintains its position that any call for a strike by the UAW would be illegal," the automaker said. "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."
Regarding the current situation, Stellantis said, "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."