UAW And Stellantis At Odds Over Recent Layoffs
UAW President Calls Stellantis Leadership "Pathetic"...
The United Auto Workers (UAW) and Stellantis find themselves at loggerheads over recent layoffs following the negotiation of a new contract.
In November, the UAW celebrated its agreement as a “landmark” achievement, boasting significant gains, including hefty investments in the U.S. market, substantial wage hikes, and the promise of full-time positions for almost 3,000 temporary workers within the first year of the new contract. However, the reality hasn’t matched the rhetoric for many Stellantis employees.
With 199 full-time workers being laid off at the Sterling Heights Assembly Plant (SHAP), which produces the company’s number one selling vehicle, the Ram 1500 (DT) pickup, UAW President Shawn Fain took to a Facebook broadcast recently to criticize the automaker and Stellantis CEO Carlos Tavares.
“The leadership is pathetic,” Fain said. “You got a CEO over there across the pond that wants to talk about how they need to cut costs and all this stuff, but it didn’t stop him from giving himself a 56% pay increase.”
Stellantis says the layoffs at SHAP are part of the automaker’s strategy to navigate higher labor costs, transition to electric vehicle production, and adapt to economic uncertainties. These measures extend beyond the U.S., with Stellantis also trimming its workforce in Italy and seeking cost-saving solutions abroad, such as hiring engineers at lower wages in countries like Brazil and India.
The situation has soured relations between the UAW and Stellantis, with the union contemplating strikes over issues like working conditions and safety concerns. Local UAW leaders have voiced their disappointment, accusing Stellantis of prioritizing profits over its workforce’s well-being.
“I find it disappointing, disgusting, and a disservice to the employees who are currently employed and those employees who were released through mass termination from Stellantis since the ratification of the 2023 contract,” remarked Michael Spencer, UAW Local 1700 President, the local that represents SHAP.
One contentious aspect of the contract was Stellantis’s commitment to transitioning temporary workers to full-time status. However, the company’s approach to fulfilling this pledge has drawn criticism from the union.
“From the union’s perspective, the union always wants job security,” noted labor relations expert Art Wheaton. “If the temporaries are going to become permanent, it reduces the flexibility for the company.”
Wheaton highlighted Stellantis’s efforts to adapt to evolving market conditions, including regulatory changes affecting emissions standards. “They’re trying to brace themselves for ever-changing market conditions,” he explained.
Source: Automotive News
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