UAW president slams Stellantis CEO over job cuts, alleged value gouging
UAW President Shawn Fain chairs the 2023 Particular Elections Collective Bargaining Conference in Detroit, Michigan, U.S., March 27, 2023.
Rebecca Cook dinner | Reuters
DETROIT – United Auto Employees President Shawn Fain ratcheted up criticism of Stellantis CEO Carlos Tavares in a video Friday afternoon, accusing the chief govt of value gouging shoppers and failing to uphold elements of the union’s labor contract with the automaker.
The feedback are the newest in an ongoing back-and-forth between the CEO and union chief following contentious collective bargaining talks final yr between the UAW and Detroit automakers, together with Stellantis.
“One thing is rotten at Stellantis,” Fain mentioned to start the 2:30-minute video posted Friday. “Gross sales are down, earnings are down, and CEO pay is means, means up. The issue is not the market at GM and Ford, auto gross sales are up, and the issue is not the auto staff. The issue is that this man, Carlos Tavares.”
Spokespeople for the union and automaker didn’t instantly reply for remark relating to the accusations or video.
A number of of the criticisms, together with these round job cuts and Tarvares’ pay, aren’t new. However Fain’s feedback Friday took the claims a step additional, accusing Tavares of value gouging shoppers within the title of earnings. He additionally alleges that Stellantis will not be honoring elements of the corporate’s employee contract, citing particularly that Stellantis is halting plans to reopen an assembly plat in Illinois.
“Reality, for years, Stellantis has bought fewer vehicles, however made extra in earnings. What does that let you know? They’re value gouging. Now they’ve gone too far, they usually’re tanking their very own gross sales,” Fain mentioned. “Reality, Stellantis CEO Carlos Tavares is attempting to return on commitments the corporate made in our final contract, together with placing the brakes on reopening the Belvedere Meeting.”
Tavares just lately criticized the UAW-Stellantis workforce, noting high quality issues at a truck plant in metro Detroit producing the Ram 1500 pickup truck. The corporate additionally has introduced thousands of layoffs at U.S. vegetation amid declining gross sales and product modifications.
“The direct run fee of a few of our plans beginning with SHAP, Sterling Heights, will not be good,” Tavares told reporters July 25 whereas discussing ongoing points with the corporate. “That’s one thing that we have to repair with our plant administration crew as properly with our individuals.”
Stellantis CEO Carlos Tavares speaks to media on June 13, 2024 following the corporate’s investor day at its North American headquarters in Auburn Hills, Mich.
Michael Wayland / CNBC
Tavares has been on a cost-cutting mission for the reason that firm was shaped via a merger between Fiat Chrysler and France’s PSA Groupe in January 2021. It is a part of his “Dare Ahead 2030” plan to extend earnings and double income to 300 billion euros ($325 billion) by 2030.
The price-saving measures have included reshaping the corporate’s provide chain and operations in addition to headcount reductions for each salaried and hourly staff.
Stellantis has diminished headcount by 15.5%, or roughly 47,500 staff, between December 2019 and the top of 2023, together with a 14.5% discount in North America, in response to public filings. That does not embrace additional headcount reductions and layoffs this yr.
A number of executives beforehand described the cuts to CNBC as grueling to the purpose of excessiveness. Tavares last month pushed back on the concept the corporate’s cost-cutting efforts have led to its present issues.
