Dive Brief:
- During a livestreamed event with union members on Tuesday, United Auto Workers President Shawn Fain called out Stellantis for terminating hundreds of temporary workers over the weekend.
- The union leader said the layoffs were unnecessary and that the automaker had chosen to “line executive and shareholder pockets” rather than retain employees.
- The news comes as the UAW attempts to organize nearly 150,000 non-union autoworkers employed by at least 13 companies in the U.S.
Dive Insight:
The layoff comes after Stellantis and the UAW agreed to a new four-and-a-half-year labor contract last fall. The deal increased base wages 25% for the automaker’s UAW-represented hourly workers and gave them the right to strike over plant closures. Stellantis also agreed to convert almost 3,000 temporary workers to permanent roles, according to the UAW.
But the automaker plans to reduce its workforce and offer $50,000 in buyouts to its UAW-represented autoworkers from 2024 to 2026, Reuters reported in November. That could make it more difficult for the UAW to convince non-union autoworkers to join the union.
In an email, a Stellantis spokesperson confirmed the company had terminated 539 employees nationwide. The automaker’s Trenton Engine Complex and Dundee Engine Plant in Michigan, as well as its Toledo Machining Plant in Ohio, were the only facilities that didn’t lose any temporary workers, according to the Detroit News.
“As part of our normal course of business, Stellantis regularly analyzes staffing levels at our manufacturing facilities to ensure they are operating as efficiently as possible,” Stellantis said in an emailed statement. “This action will help improve the efficiency, productivity and market competitiveness of our facilities as we implement our [electrification] plan.”
Fain said Stellantis was “bringing the pain to the lowest paid workers and blaming the union” for it.
“Stellantis can afford to do the right thing here and provide a pathway to full-time, good auto jobs,” Fain said.
