Stellantis offering buyouts to employees as automaker reviews costs

Stellantis on Wednesday said it is offering buyouts to groups of white-collar workers and unions in the U.S., as well as hourly workers in Canada.

The cuts “are in response to increasingly competitive global market conditions and the changes required for electrification,” the company said in a prepared statement.

Stellantis said it plans to reduce its hourly workforce by about 3,500, but would not say how many salaried employees it would employ.

The company has about 56,000 workers in the U.S., and about 33,000 of them could take advantage of the offer. Of these, 31,000 are blue-collar workers and 2,500 are salaried employees.

The company has 8,000 other unions in Canada, but would not say whether they would win a bid.

UAW calls move ‘disgusting’

Stellantis, formed by the merger of Fiat Chrysler and France’s PSA Groupe, said in a statement that it is reviewing its North American operations to reduce costs, become more efficient and protect the competitiveness of its products.

The company said it offers packages to workers with 15 years or more of salary. Packages are also offered to union employees in the US and Canada.

Information about the package will be sent to employees the week of May 1.

The offer drew immediate criticism from Shawn Fain, the new president of the United Auto union.

“Stellantis push to cut thousands of jobs while raking in billions in profits is disgusting,” Fain said in a prepared statement.

“This is a slap in the face to our members, their families, communities, and the American people who saved this company 15 years ago.”

The former Chrysler company went into government-funded bankruptcy in 2009 and was eventually merged with Italian automaker Fiat.

The offer follows Ford and General Motors, which have cut jobs in the past year through buyout offers.

About 5,000 white-collar workers have taken General Motors on a bid to leave the company this year. Ford cut about 3,000 contract and full-time workers last summer, offering severance packages.

The union’s testy statement about Stellantis comes earlier than expected in contentious contract talks between three Detroit automakers, the United Auto Workers, and Unifor, the Canadian union that represents auto workers.

Talks with both unions will open this summer.

The UAW contract expires in September.

Last week, Fain told reporters he was unhappy with all three companies over their efforts to put together new joint venture factories that will make battery cells for future electric vehicles.

The three companies are investing billions to build at least 10 battery factories in North America to handle the expected demand for EVs.

Fain singled out Stellantis, saying it failed to include the Union when it announced a battery factory in Kokomo, Indiana. He also said that Stellantis’ plan to close its plant in Belvidere, Illinois, was unacceptable.

Stellantis placed the Belvidere plant on “idle” in February and laid off most of its 1,350 employees.

Fain won a narrow election last month on the platform that unions have long worked with automakers. He wouldn’t say if there was any possibility of an attack against Stellantis.

WATCH | What happens to blue-collar workers as the industry shifts to EVs?