STERLING HEIGHTS, Mich. – The new UAW president has reacted to Stellantis offering 33,000 workers a deal to separate from the company.
Stellantis has announced that it is looking to reduce its workforce by 3,500 hourly employees. A staggering number, especially considering they are about to negotiate a national contract with the UAW. And considering the union’s reaction tonight, it’s clear both sides are spoiling for a major fight this fall.
About 31,000 hourly workers and 2,500 salaried workers will receive an offer.
Stellantis CEO Carlos Tavares is known as a very tough cost cutter.
Last Friday, Shawn Fain told the Automotive Press Association he’s not kidding around in assuring his membership he intends to get back a lot of the benefits the union faithful gave up during the bankruptcies.
Stellantis put out this statement Wednesday afternoon: “In response to today’s increasingly competitive global market conditions and the necessary shift to electrification, Stellantis is thoroughly reviewing its North American operations to improve efficiency. "
Below is a statement by Stellantis on the layoffs:
“In response to today’s increasingly competitive global market conditions and the necessary shift to electrification, Stellantis is thoroughly reviewing its North American operations to improve efficiency, reduce costs and protect the competitiveness of our products to allow for further strategic investments to support our transformation.
To help in that effort, the Company today announced that it is offering voluntary separation programs to certain non-represented and represented employees.
These voluntary programs are being offered to provide a favorable option to employees looking to pursue new opportunities while preserving critical roles the Company needs in order to maintain its competitive advantage.
Voluntary separation packages are being offered to designated non-represented U.S. employees who have 15 or more years of service and work in certain organizations.
Stellantis will also offer certain represented employees in the U.S. and Canada an opportunity to separate from the Company.
Information regarding the various packages will be communicated to eligible employees the week of May 1.
To support the overall transformation to a mobility tech company, Stellantis continues to evolve its workforce by offering opportunities to learn new skills outside their existing skillset or enhance current skills.”
Stellantis -- April 26, 2023
UAW locals posted a letter laying out two packages: an incentivized program for with $50,000 bonuses for those hired before 2007 and a voluntary program with a seniority-based sliding scale lump sum.
“This is a slap in the face to our members, their families, their communities, and the American people who saved this company 15 years ago,” Fain said in a statement.
Last Friday, Fain made it clear the relationship between him and Tavares is broken and he said he would do whatever it takes to get his membership more and better. Meantime the company will make the same kinds of offers for Canadian auto workers.
“Our union is working around the clock to get justice for the members impacted by these job cuts. We look forward to Stellantis doing the right thing by the workers who make this company run,” said UAW Vice President Rich Boyer in a statement.
Below is a statement from UAW:
“Stellantis’ push to cut thousands of jobs while raking in billions in profits is disgusting. This is a slap in the face to our members, their families, their communities, and the American people who saved this company 15 years ago. Even now, politicians and taxpayers are bankrolling the electric vehicle transition, and this is the thanks the working class gets. Shame on Stellantis.”
UAW, International Union -- April 26, 2023