Steel Markets
Stellantis, UAW Clash on Worker Buyout Program
May 1, 2023
Automaker Stellantis, Chrysler’s European parent company, and the United Auto Workers (UAW) union are at odds over a proposed worker buyout program.
“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 cost, and protect the competitiveness of our products to allow for further strategic investments to support our transformation,” a Stellantis spokeswoman told SMU in a statement provided on April 26.
To aid in that effort, Stellantis said that “it is offering voluntary separation programs to certain non-represented and represented employees.”
However, the UAW had a different outlook on the program.
“Our union is working around the clock to get justice for the members impacted by these job cuts. We look forward to Stellantis doing the right thing by the workers who make this company run,” UAW VP Rich Boyer said in a statement on April 26.
UAW president Shawn Fain was frank. “Stellantis’ push to cut thousands of jobs while raking in billions in profits is disgusting,” he said in the same statement.
On the other side, Stellantis highlighted that 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.”
The company said information regarding the various packages will be communicated to eligible employees this week.
Separately, the spokeswoman confirmed with SMU that the labor contract with the UAW expires on Sept. 14 at 11:59 p.m. She said that although Stellantis is always in communication with the union, formal bargaining is set to begin this summer.
Representatives for Ford and General Motors confirmed their labor contracts with UAW expire at the same time.
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in Steel Markets
Trading firms Mercuria and Tata International partner in joint venture
Geneva-based global commodities trader Mercuria is set to acquire a majority stake in Tata International, according to a report in India's Economic Times.
Glenfarne Alaska LNG and POSCO ink preliminary partnership
Glenfarne Alaska LNG and POSCO signed a preliminary strategic agreement during the GasTech Conference in Milan on Thursday.
Steel export volumes remain weak through July
Following a 3% decline in June, the amount of steel shipped outside of the US edged up 1% in July to 623,000 short tons. July was the sixth-lowest monthly export rate since the COVID-19 pandemic, and...
Hot-rolled market participants say ‘doldrums’ to roll on through year-end
Participants in the hot-rolled steel sheet market expect the market to remain subdued through the end of the year.
Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.