Title: Stellantis COO Criticizes UAW’s Demands in Contract Negotiations, Warns of Job Risks
Date: [Current Date]
In a recent email, Mark Stewart, the chief operating officer of Stellantis NV in North America, expressed his concerns regarding the United Auto Workers’ (UAW) initial set of demands in contract negotiations. Stewart referred to the demands as a “losing proposition” that could potentially endanger jobs within the company.
The response from Stewart came just days after UAW President Shawn Fain dramatically rejected a July 27 offer from Stellantis in a Facebook livestream, throwing the proposal into his office trashcan. With the expiration of their current contract looming on September 14, both parties have limited time to reach a mutual agreement.
The union’s proposal included a significant wage increase of 46% over four years, a shorter 32-hour workweek paid like a 40-hour week, expanded pensions and retiree health-care coverage for all members, cost-of-living adjustments, and more. However, estimates suggest that implementing these demands could cost more than $100 per hour per worker in wages and benefits.
Comparatively, the hourly all-in labor cost for the Detroit Three stands at around $65 per hour, while Stellantis currently stands at approximately $63 per hour. Foreign automakers operating in the United States, referred to as “transplants,” have a labor cost of around $55 per hour, while electric vehicle manufacturer Tesla Inc. pays around $45 per hour.
Stewart emphasized the importance of finding solutions that protect Stellantis from the challenges posed by competitors, including the lower cost structure of transplants and the additional expenses associated with electrification. He noted that meeting Fain’s demands could hinder the company’s ability to make decisions that ensure job security for employees and create affordable vehicles for customers.
Expressing his disappointment with Fain’s “theatrics and personal insults,” Stewart urged a focus on reality and emphasized the need for professionalism during negotiations. He stated that Stellantis is committed to reaching an agreement based on the company’s long-term health while rewarding employee contributions.
The UAW has yet to respond to Stewart’s letter, and their stance on the matter remains unknown.
Stellantis’ July 27 offer placed a strong emphasis on reducing unplanned absences and sought to tie wage increases, profit sharing, and supplemental unemployment benefits to workers’ attendance. The proposal also aimed to introduce greater employee cost sharing for healthcare and the creation of a new worker classification to allow for a more flexible schedule.
Notably, Stellantis achieved a record $15.2 billion in adjusted operating income in North America in 2022, with $8.88 billion registered in the first half of 2023. Stellantis workers received $14,760 in profit sharing for 2022, the highest among UAW-represented employees in the Detroit Three, although supplemental workers were not eligible for the benefits.
For further information, contact:
Breana Noble | Detroit News
Email: [email protected]
Twitter: @BreanaCNoble
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