The auto industry is currently experiencing years of disruption. As research and development are at the heart of automakers’ economic activities, many changes are coming in the manufacturing and assembly of next-generation vehicles.
As proof, several manufacturers have decided to eliminate key positions in their manufacturing plants to make way for new assembly techniques. This is the case of Stellantis the automotive company that notably owns the brands Dodge, Jeep, Chrysler, RAM, Alfa Romeo And fiat in Canada. The company will offer a voluntary departure program to a number of Canadian employees. This will, according to the organization, improve its efficiency.
A North American program
Initially, the information collected does not come from the Canadian branch of the automaker, but from the media on the other side of the border. I’Associated Press confirmed on Wednesday that 33,000 Stellantis workers in the United States could receive the voluntary departure offer. Of this number, 31,000 employees are honorary workers and 2,500 are salaried. The workers targeted by this proposal are those who have accumulated 15 years or more of service in the organization.
In Canada, Stellantis has 8,000 unionized workers. For the time being, the company remains silent on the exact number of employees who could receive the departure offer. Some sources confirm, however, that the 8,000 workers will receive the voluntary departure proposal, but the information is not confirmed by the manufacturer.
According to the company, the job cuts are being considered “in response to increasingly competitive global market conditions and the necessary shift to electrification”. This information, issued by the company in a statement sent to employees, is also supported by a note from Stellantis Chief Operating Officer, Mark Stewar. He told employees that a study, conducted by Reuters, “clearly showed that we need to become more efficient”.
He also added that Stellantis must increase its efficiency to make its operations more competitive, both inside and outside the company. “Competition is fierce, and the cost of electrification cannot be passed on to the customer. Make no mistake, we intend to win the market,” he wrote.
A harsh criticism of the unions
Shawn Fain, president of the United Auto Workers (UAW) union, strongly criticized this approach: “Stellantis’ pressure to cut thousands of jobs while reaping billions in profits is disgusting,” he said. “It’s a slap in the face to our members, their families, their communities, and the American people who saved this company 15 years ago. »
This is not the first job cut made by the company in recent months. In February, the organization furloughed 1,350 workers from the Belvidere, Illinois plant indefinitely after the Jeep Cherokee assembly line was shut down.
The phenomenon of starting proposals is not just aimed at Stellantis. General Motors also offered a similar proposal to several of its employees. To this end, 5,000 of the manufacturer’s employees accepted the offer at the beginning of April.
