UAW fights back against Stellantis plan to lay off 2,500 Michigan workers

United Auto Workers President Shawn Fain speaks at a rally in Detroit, Sept. 15, 2023. The UAW is preparing for a fightback against Stellantis over layoffs at its Warren, Mich., plant. | Paul Sancya / AP

DETROIT—”The American taxpayer has invested in Stellantis. Workers have invested in Stellantis. Consumers have invested in Stellantis. It’s time for Stellantis to invest in us.”

That was the heated response of United Auto Workers President Shawn Fain following the auto giant’s threat of massive layoffs at its Warren Truck Plant.

Stellantis may indefinitely lay off as many as 2,450 of the 3,700 workers there who build an older version of the Ram 1500 pickup called the Tradesman. The layoffs could start as early as Oct. 8, according to the Associated Press.

Stellantis is shifting production of the newest model of the Tradesman to the Sterling Heights Assembly Plant. The company said that the plant will “move from a two-shift to a one-shift operating pattern in General Assembly,” and the remaining workers at the Warren facility will still build the Jeep Wagoneer SUV.

Formerly known in the U.S. as Chrysler and then Fiat-Chrysler, Stellantis produces brands such as Jeep, Chrysler, Dodge, and others. In 2021, Fiat-Chrysler Automobiles, which acquired Chrysler Group in 2012, merged with the French company PSA Group to become what is now Stellantis. As of last year, Stellantis is the fourth-largest automaker by sales in the world. It employs 43,000 workers in the U.S.

Stellantis’ profits are down by 48% in the first six months of 2024 as compared to last year, Detroit Free Press reported. Vehicle shipments fell from more than a million to 838,000 in North America. Still, in its last full earnings report, for the final six months of 2023, Stellantis said it made a net profit of $8.3 billion.

“Stellantis CEO Carlos Tavares is a disgrace and an embarrassment to a once-great American company. While GM and Ford report fantastic profits and increased sales, Stellantis is going backwards,” Fain said. “Meanwhile, Tavares jacks up his own pay by 56% while laying off thousands of auto workers.”

This round of layoffs by Stellantis follows almost 200 full-time workers being laid off at the Sterling Heights Assembly plant earlier this year. Additionally, another 539 supplemental employees were cut in January at several plants, 341 were cut in March at Toledo Assembly, and 239 workers were cut at the Freud Street parts sequencing facility near the Jefferson North Assembly plant.

That the company has laid off thousands of auto workers has angered the UAW and left the community without fewer good union jobs.

Michael Spencer, president of UAW Local 1700, which covers the Sterling Heights Assembly, called Stellantis’ actions “disappointing, disgusting, and a disservice” to workers and the community.

“We are talking about families and communities that are directly affected by a company that chooses to play monopoly with people’s lives,” he said. “In order to build a successful future, the investment has to be with the same people that make your product and profits possible and successful.”

“Trust me, the leadership here is going to fight like hell together with the membership and make sure that they honor their commitments,” Fain said in response to the first round of layoffs in April.

“And you know what? Stellantis is pathetic. Honestly, the leadership is pathetic. You got a CEO over there across the pond who wants to talk about how they need to cut costs and all this stuff, but it didn’t stop him from giving himself a 56% pay increase,” he said.

Auto workers at the plants aren’t the only casualties of Stellantis’ layoff scheme. In March, they laid off 400 tech and engineer workers. Last year, the company offered buyout packages to 6,400 white-collar workers who aren’t covered by the UAW collective bargaining agreement.

Stellantis’ massive job cuts are also happening across Europe. Earlier this year, thousands of people joined in solidarity with striking workers in northern Italy. Stellantis is aiming to reduce its Italian workforce by 8%, or roughly 3,700 workers, according to Fiom, the union that represents auto workers there. The company has also laid off up to 600 workers in France.

In April, Stellantis investors agreed to give Tavares a $39 million compensation package. The CEO’s total compensation is up almost 60% from 2022 levels.

UAW President Shawn Fain said workers shouldn’t “lose sight of the fact that the company is the enemy here.”

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CONTRIBUTOR

Cameron Harrison

Cameron Harrison is a trade-union activist and organizer for the CPUSA Labor Commission. Based in Detroit, he was a grocery worker and a proud member of UFCW Local 876, where he was a shop steward.