Stellantis NV, is planning to eliminate about 3,500 hourly jobs in the US ahead of the expiration this fall of a collective bargaining contract with the United Auto Workers (UAW)
Layoffs
April 26, 2023
April 25, 2023
Stellantis NV, the multinational automotive company formed from the merger of Fiat Chrysler Automobiles NV and France’s PSA Group, has announced its plan to eliminate about 3,500 hourly jobs in the US. This announcement comes ahead of the expiration this fall of a collective bargaining contract with the United Auto Workers (UAW).
According to a letter signed by Doug McIntosh, president of UAW Local 1264, Stellantis is planning to offer early retirement offers and buyout incentives to both skilled and production workers. This move is aimed at reducing the company’s workforce and cutting costs.
Jodi Tinson, a US-based spokeswoman for Stellantis, declined to comment on the letter. The international UAW union and the local also could not immediately be reached for comment.
Both the union and company are preparing for talks ahead of a September 14 deadline for a new four-year contract. These talks will be crucial in determining the future of Stellantis’ hourly workforce in the US.
Stellantis’ CEO, Carlos Tavares, had warned in February that more job cuts could be in the offing as the cost of electrification eats into the company’s profit margins. This announcement comes after the automaker idled its Jeep plant in Belvidere, Illinois, laying off about 1,350 workers indefinitely. It also said it would cut as many as 2,000 jobs in Italy.
According to Tavares, “The cost of electrification is going to have an impact on the footprint of business that we are going to have around the world.” It seems that Stellantis’ announcement is a reflection of this reality, as the company seeks to streamline its operations and cut costs in response to the challenges posed by electrification.
Members of LevelFields received the alert of this event on April 25, 7:50 PM ET
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