The auto manufacturing giant Stellantis has permanently laid off over 500 workers. The company confirmed that 539 employees nationwide have been dismissed after an in-depth review of its operations.
Stellantis issued a statement explaining that this decision aims to enhance their facilities' efficiency, productivity, and market competitiveness. The move marks a significant shift in the company's workforce management strategy.
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Stellantis Cuts 539 U.S. Temporary Workers, Denies Layoff Status
The automotive giant Stellantis has recently informed 539 of its lower-paid, temporary employees about their immediate job termination. These workers, similar to the temporary workforce at General Motors Co. and Ford Motor Co., received notices last Friday about this significant change.
Stellantis clarified that these job cuts are not considered layoffs, meaning the affected individuals will not qualify for supplemental unemployment benefits. The company announced this decision on Monday, stating that these workers are "permanently separated" from their U.S. manufacturing roles.
In a statement released through spokesperson Jodi Tinson, Stellantis explained the rationale behind this move. "As part of our regular business operations, we consistently review staffing levels at our manufacturing sites to maximize efficiency," the statement read.
The company emphasized that this step is crucial for enhancing efficiency, productivity, and market competitiveness, aligning with the objectives of their 'Dare Forward 2030 strategic plan.
It was noted that three facilities will not be affected by the changes. These are the Trenton Engine and Dundee Engine plants and the Toledo Machining facility in Ohio.
Stellantis Job Cuts Amid Cost Evaluation and Industry Changes
Stellantis, transitioning into a mobility tech entity focusing on costlier electric vehicles, has recently undertaken a series of cost-evaluating actions.
These steps come in the wake of a significant contract with the United Auto Workers and the shift towards electric vehicles, which are more expensive to produce than traditional internal combustion engine vehicles.
Earlier this month, Stellantis opted out of the February's Chicago Auto Show, aiming for a more efficient use of media funds. Furthermore, the company will not feature an advertisement in this year's Super Bowl. This strategy shift occurred as Stellantis faced a 1% drop in U.S. sales last year, contrasting the industry's growth.
Reacting to these developments, UAW President Shawn Fain expressed concern. "We've successfully negotiated the conversion of nearly 3,000 temporary workers to permanent positions, securing significant raises and benefits.
This move also ended the continuous misuse of 'temporary' worker status. However, the companies are now targeting the lower-paid workers, creating a divide and wrongly pointing fingers at the union," Fain stated.
Fain criticized Stellantis's decision, suggesting the company could afford more equitable employment practices. "Stellantis has the means to offer full-time, quality auto jobs but is prioritizing executive and shareholder profits instead.
These workers have been instrumental in generating the company's record profits; there's no justification for laying off even one of them," he added.
Stellantis has announced further job cuts, adding to the 2,453 temporary layoffs at Detroit's Mack Assembly Plant and 1,225 at Ohio's Toledo Assembly Plant, as per WARN letters. These layoffs, effective from February 5, include significant numbers of supplemental workers, who previously formed 12% of Stellantis' U.S. hourly workforce.
Additionally, in November, Stellantis offered buyouts to 6,400 U.S. white-collar workers, although the acceptance rate of this offer remains undisclosed.
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