FCA US LLC, a prominent player in the automotive industry, has taken legal action against a major labor union, highlighting tensions over contractual obligations and future investments. On October 4, 2024, FCA US LLC filed a complaint in the United States District Court for the Northern District of Illinois against The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW) and UAW Local 1178. The lawsuit centers around allegations of breach of contract due to unauthorized mid-contract strikes.
The conflict arose during the 2023 collective bargaining negotiations when Stellantis (the name under which FCA US LLC operates) and the UAW agreed on future investment plans in U.S. operations as outlined in Letter 311 of their collective bargaining agreement (CBA). This letter indicated that Stellantis planned to invest in various plants throughout the life of the CBA, expiring in 2028. However, these investments were contingent upon approval by Stellantis' product Allocation Committee and dependent on factors such as plant performance and market conditions.
Despite this agreement, Stellantis accuses the UAW and its president, Shawn Fain, of ignoring these conditions and pressuring the company to proceed with investments without necessary approvals. The union allegedly embarked on a campaign to force these investments through unauthorized strikes and sham grievances that violate the CBA's no-strike clause. Stellantis argues that these actions are not only baseless but also constitute bad faith under Section 301 of the Labor Management Relations Act.
Stellantis seeks judicial intervention to prevent further breaches by declaring that the UAW cannot disregard Letter 311's stipulations. Additionally, they request monetary damages for any economic harm resulting from work stoppages caused by these alleged violations. The company emphasizes that Defendants have acted contrary to their contractual commitments by misrepresenting Letter 311’s terms publicly and within their grievances.
The legal proceedings are being handled by attorneys Stephanie Sweitzer from Morgan, Lewis & Bockius LLP based in Chicago, along with W. John Lee from Philadelphia and David Broderdorf from Washington D.C., who are set to join pro hac vice. The case is overseen by judges from the Northern District of Illinois under Case ID: 1:24-cv-09574.