UAW Criticizes Stellantis Layoffs at Sterling Heights Plant

Stellantis has announced plans to lay off 191 workers at its Sterling Heights Assembly Plant (SHAP) in Metro Detroit, a move that has sparked sharp criticism from the United Auto Workers (UAW). The layoffs, set to take effect on October 1, 2024, will primarily impact seasonal supplemental employees who were hired to cover for increased summer vacation periods. Stellantis pointed to challenging market conditions and the need for operational adjustments as the primary reasons behind the job cuts.

In a statement released by the automaker, Stellantis noted, “Seasonal supplemental employees hired to support production by covering for increased vacation usage during the summer months will be separated from the company effective Oct. 1, in accordance with the 2023 UAW collective bargaining agreement.”

The company further explained its decision to impose indefinite layoffs on full-time employees across its U.S. facilities, citing external pressures and the need for continued cost efficiency. “Stellantis is in full execution mode focused on both protecting the company from the continued intense external market conditions and, at the same time, offering customers vehicles they can afford,” the company said. “We are continuing to take the necessary actions to improve operations across our facilities; this includes ongoing assessments of our manufacturing processes to improve efficiency.”

UAW Response: A Deep Disappointment –

The UAW, however, responded with strong condemnation, calling the layoffs an unnecessary blow to loyal workers. UAW Local 1700, which represents employees at SHAP, issued a statement criticizing the move. “This shows that the company having a heart or any respect is out the window,” the union said. “It’s just a business decision for them. One robocall to fire 177 people for no wrongdoing of their own.”

UAW President Shawn Fain also weighed in, arguing that Stellantis was not honoring the terms of the labor agreement signed in 2023. Fain’s comments further highlight the growing frustration within the union, particularly as the workforce faces uncertainty amidst ongoing changes at the automaker.

Sterling Heights Assembly Plant: A Hub of Future Production –

SHAP, located in  Sterling Heights, Michigan, is a cornerstone of Stellantis’ manufacturing operations in North America. The sprawling facility covers 5 million square feet and sits on 286 acres, producing the widely popular Ram 1500 (DT) model, including both the Quad Cab and Crew Cab versions. The plant is represented by UAW Locals 1700, 889, and 412.

Despite the layoffs, Stellantis continues to invest in SHAP’s future. Earlier this month, the company announced a $235.5 million investment to prepare the plant for the production of the 2025 Ram 1500 REV, Stellantis’ first-ever battery-electric light-duty truck. The Ram 1500 REV, which was unveiled at the 2023 New York Auto Show, is set to launch in late 2024. The facility will also produce the range-extended 2025 Ram 1500 Ramcharger, as part of Stellantis’ broader electrification strategy.

Tensions Between Stellantis and the UAW –

While Stellantis focuses on adjusting its operations for future demands, the tension between the company and the UAW remains palpable. The UAW’s criticism reflects broader concerns about job security and how decisions are being communicated to the workforce. With Stellantis making strides toward electric vehicles and efficiency improvements, union leaders continue to advocate for more worker protections and transparency as the automaker navigates this transformative period.

As the auto industry faces ongoing market fluctuations, the layoffs at SHAP illustrate the growing friction between Stellantis’ business goals and the workers who build the vehicles that drive the company’s success.

Source: WDIV