Stellantis Looks To Eliminate 3,500 Hourly Employees In The United States

Stellantis (FCA US) is looking to eliminate 3,500 hourly employees in the United States. The information was made public as a result of a letter from the United Auto Workers (UAW) being shared on social media.

According to the letter from UAW Local 1264 (the union representing the employees at the Sterling Stamping facility in Sterling Heights, Michigan), Stellantis is attempting to cut down on its hourly workforce by providing incentive benefits to workers hired before 2007. $50,000 in payments are reportedly part of the packages. The number of layoffs may actually be less than what was indicated in the UAW letter, according to a source with knowledge of the situation.

Due to the high cost of producing electric vehicles (EVs), Stellantis already closed an assembly plant in Illinois in late February. The shutdown Belvidere Assembly Plant, which built the Jeep® Cherokee (KL), resulted in the permanent layoffs of about 1,350 workers. The automaker has issued a warning that it might not resume production while it considers its options.

According to the UAW letter, employees who are placed on indefinite leave of absence will fill any open positions. In February, Stellantis predicted that 40,000 American hourly workers qualified for profit sharing.

As a “flat-out violation” of the union’s contract, Stellantis’ decision to close its Illinois plant has drawn criticism from UAW President Shawn Fain. Before their contracts with Detroit’s Big-3 expire in the middle of September, the UAW intends to start talks with them.

Following General Motors’ announcement earlier this month that 5,000 salaried workers had taken buyouts and left the company, Stellantis’ news of its layoffs comes as a shock. Ford Motor Company, meanwhile, recently announced significant job cuts worldwide, including 3,000 full- and part-time positions, with the majority of them taking place in North America and India. These cuts also included significant layoffs in Spain, Germany, and other European nations.

Source: Reuters