Steel Markets

Stellantis, UAW Clash on Worker Buyout Program

Automaker Stellantis, Chrysler’s European parent company, and the United Auto Workers (UAW) union are at odds over a proposed worker buyout program.  

Stellantis“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,

Latest in Steel Markets