STERLING HEIGHTS, Mich. – Automotive company Stellantis announced this week that it’s offering buyouts to 33,000 employees in an effort to “improve efficiency” in a competitive market.
Stellantis officials say the company is looking to reduce its workforce by 3,500 hourly employees. About 31,000 hourly workers and 2,500 salaried workers will receive an offer to separate from the company.
UAW locals posted a letter laying out two Stellantis 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.
“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,” the company said in a statement.
Though Stellantis CEO Carlos Tavares is known as a tough cost cutter, the move to buyout employees still comes as a shock, considering the company is about to negotiate a national contract with the UAW.
And the union’s reaction to the news makes it clear both sides are gearing up for a major fight come fall. Newly-elected UAW President Shawn Fain told the Automative Press Association that he intends to get back a lot of the benefits the union faithful gave up during the bankruptcies.
After the Stellantis announcement, union Vice President Rich Boyer said they are “working around the clock to get justice for the members impacted by these job cuts.” The union called the Stellantis buyouts a “slap in the face.”
“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,” the union said in a statement. “Even now, politicians and taxpayers are bankrolling the electric vehicle transition, and this is the thanks the working class gets. Shame on Stellantis.”
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, Stellantis will make the same kind of offers for Canadian auto workers.
You can read Stellantis’ full statement below.
“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