Stellantis Leadership Draws Criticism for Layoffs and CEO Compensation

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Stellantis Leadership Draws Criticism for Layoffs and CEO Compensation
UAW President Shawn Fain criticized Stellantis, calling their actions pathetic

In a recent Facebook live event, UAW President Shawn Fain criticized Stellantis, calling their actions “pathetic.” The company, known for making cars like the Ram 1500 and Jeep Wagoneer, fired many full-time workers from its Warren Assembly plant. They also cut engineering, tech, and software jobs in the first part of 2024. Stellantis plans to replace these jobs with lower-paying ones from countries like Morocco, India, and Brazil.

This happened not long after Stellantis and the union agreed to hire 3,200 temporary workers full-time and raise wages by up to 25 percent. But instead of following through, Stellantis let go of nearly 900 of these temporary workers this year. It seems like they’re not sticking to the deal they made with the UAW, even though it’s only been six months since they agreed.

Stellantis Leadership Draws Criticism for Layoffs and CEO Compensation
UAW President Shawn Fain criticized Stellantis, calling their actions pathetic

Fain didn’t hold back, saying, “Honestly, the leadership is pathetic.” He criticized CEO Carlos Tavares for giving himself a huge pay raise while cutting jobs. Tavares made $39 million in 2023, up from $24.8 million the year before. To put it in perspective, that’s as much as 657 American workers earning the average salary.

Last November, Stellantis promised to invest $19 billion in new projects in the U.S., raise wages by 25 percent, get rid of the “tiers” system, and guarantee full-time status for 3,200 temporary workers. But instead of hiring these workers, Stellantis fired many of them and plans to lay off more in the U.S. to improve productivity.

If Stellantis can’t keep its promises, they might see workers protesting again soon. People want to make sure they have stable jobs in a changing world.

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By Preksha Sharma

being me means you've got to love cars, coffee and gilmore girls. sorry i don't make the rules.

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