Stellantis To Cut 3,500 Hourly U.S. Jobs Through Buyout, UAW Local Says

By Staff Writer April 26, 2023 1217

Stellantis is looking to cut around 3,500 hourly jobs in the U.S by offering buyouts and retirement incentives to workers ahead of negotiations with the UAW later this year.  UAW Local 1264, which represents the Stellantis stamping plant in Sterling Heights, Mich., said in a letter to members that the offers would be made “corporate wide.” The 3,500 job target compromises about 8% of the 43,000 hourly workers who collected a profit-sharing check from Stellantis in March. The U.S. arm of Stellantis , FCA, operates 22 assembly plants across the United States producing the automakers iconic brands, Ram, Jeep,  Dodge,  Chrysler,  Fiat, and Alfa Romeo.

Retirement-eligible workers hired before ratification of Chrysler’s 2007 contract with the UAW can receive $50,000 to leave their job, the letter, which UAW Local 1264 posted to Facebook on Monday. 

Excerpt of the UAW letter posted on Monday.

The letter also indicated employees who have been with the company for at least a year would be eligible for a yet undisclosed lump-sum amount, with the Voluntary Termination Employment Program (VTEP). Workers will be able to sign-up from May 6 through June 19.  Departure dates will be scheduled for June 30 through Dec. 31, depending on each plant’s needs. The openings would be filled by workers on indefinite layoff, the letter said.

The attrition incentives come as Stellantis prepares to launch 25 electric vehicles in the U.S. by 2030.  CEO Carlos Tavares has said that the automaker must find savings as it ramps up production for EVs.  Last month in an interview at the New York Auto Show, Tavares mentioned ‘that if a worker at a Stellantis engine facility receives a job offer from one of the automaker’s new battery operations, “run” to grab it’.  Tavares acknowledged that the auto industry is evolving but has yet to claim any knowledge of its future form. There will be some job disruptions and some job creations the CEO noted. The transition to EVs is being accelerated because “all the risks today are external to the company. There’s inflation, semiconductor shortages, and strict regulations.” 

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Last modified on Sunday, 18 June 2023 23:40