Yardbird
Senior Member
Stellantis sues UAW for efforts to reinstate financially burdensome Jobs Bank
2 min readStellantis’ (NYSE:STLA) protracted battle with the United Auto Workers union took another contentious turn after the automaker said on Monday it has filed additional lawsuits against the UAW and UAW Local 230 after the union proposed reinstating the Jobs Bank limiting Stellantis’ ability to lay off workers.
The Jobs Bank requires automakers to retain excess employees and pay them 85% of their current salary even while furloughed from production functions. The exorbitant costs of the program contributed to Stellantis’ 2009 bankruptcy and lack of competitiveness for U.S. automakers during the 1990s and early part of this decade. It was eventually scrapped by General Motors (GM) in 2009 as a condition of the federal bailout in late 2008.
The UAW is advocating for a reinstatement of the Jobs Bank for the approximately 900 employees transferred from the idled Belvidere factory and those laid off by the temporary closure, currently being paid at 74% of full pay. During contract negotiations with the UAW last fall, Stellantis (STLA) agreed to reopen Belvidere. While the UAW claims Stellantis (STLA) has reneged on its commitment, the company claims its plans to reopen Belvidere has been delayed, not cancelled.
“The company rejected the UAW’s latest proposal [to reinstate the Jobs Bank] because it would revert to prebankruptcy terms and conditions that would jeopardize the company’s future,” Stellantis (STLA) said in a statement, adding that “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.”
https://www.msn.com/en-us/money/com...TS&cvid=bfb4e42b67f349b4b3c1cb0f456fbdb9&ei=9
