Detroit/ Retail & Industry
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Published on April 24, 2024
Stellantis' US Operations Wrestle with Layoffs, Sterling Heights Workers Among Those Affected Amidst Industry UpheavalSource: Wikipedia/ajay_suresh, CC BY 2.0, via Wikimedia Commons

The auto industry's turbulence continues as Stellantis NV gears up for more layoffs across its United States plants, including the Sterling Heights Assembly Plant in Michigan. Brutally straightforward, a Stellantis statement said the layoffs are part of the automaker's struggle to streamline operations and combat a "rapidly changing global market." The Sterling Heights plant, which cranks out the popular Ram 1500 trucks, saw 199 of its workers hit with layoffs according to FOX 2 Detroit.

Michael Spencer, the president of United Auto Workers Local 1700, made no bones about it when he lambasted the company's move in an email: "disappointing, disgusting and a disservice" to employees, showcasing his outright disgust with the management's decisions. The hard blow was also at odds with the positive trend seen across the industry, which generally marked a 5.1% sales increase, while Stellantis reported a nearly 10% sales slump.

Workers' ire was inflamed not only by the cuts but also by what was perceived as a double standard in leadership remuneration. Stellantis CEO Carlos Tavares himself was the subject of scorn, with UAW president Shawn Fain decrying his 56% pay spike on a Facebook Live event, blatantly calling Stellantis leadership “pathetic.” “And you know what? Stellantis is pathetic. Honestly, the leadership is pathetic. You got a CEO over there across the pond that 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.", Fain told Facebook viewers, according to The Detroit News.

The broader strokes of the company's cost-cutting narrative paint a picture of an industry in flux, particularly as it wrestles with the transition to electric vehicles. The strain from new contracts and manufacturing adjustments is palpable, with the need to keep electric vehicles affordable serving as a backdrop to the layoffs. Amidst the controversy, Stellantis pointed to necessary actions to improve the efficiency of its manufacturing facilities, as the company grapples with a market where electric vehicles run 40% heavier on the wallet than their gasoline counterparts.

Adding to the discontent, the World Socialist Web Site reported that more layoffs loom over Stellantis locations, including the Mack Avenue Assembly in Detroit, further tightening the squeeze on the workforce. The situation is aggravated by the company's call for mandatory overtime at the Toledo Assembly Complex, where workers face ten-hour shifts, seven days a week. Meanwhile, local UAW chapters like UAW Local 1700 at SHAP are left to grapple with the high-powered decisions, their protests a stark indicator of the chasm between labor and management.