On Monday, during a meeting with all employees, the COO Stellantis Mark Stewart said the company plans to offer voluntary severance packages to non-union workers with at least five years of service, according to people familiar with the matter. This will be the second voluntary severance program and is expected to be offered virtually 6,400 employees. Last April, the automaker showcased approx 2500 employees Voluntary exit, with another round in October 2022.
Stellantis announced that it will offer voluntary severance pay to 6,400 employees in the United States
According to the company, these programs are offered to help employees who want to leave the company to pursue other interests or retire with an attractive benefits package. “As the U.S. auto industry continues to face challenges, Stellantis is taking the necessary structural measures to protect our business,” the company said. The voluntary exit programs are the latest step Stellantis is taking to protect its profits as it braces for higher labor costs In the United States and Canada It is preparing to launch its first electric cars in North America.
also General Motors and Ford Motor They laid off employees last year. Automakers are downsizing to protect themselves from a potential market slowdown as higher interest rates make car loans more expensive. They are also spending a lot of money on battery production and other investments related to electric cars. Stellantis employees are expected to have several weeks to evaluate the offer. If they choose to accept, they will likely leave the company before the end of the year.
Last month, the Netherlands-based company reached tentative agreements with the United Auto Workers union along with Ford and General Motors, after a difficult series of union negotiations and a nearly six-week strike that simultaneously affected all three automakers for the first time. To 43,000 workers at Stellantis factories in the United States They were asked to vote on the interim agreement, which includes an across-the-board salary increase of 25% over the four-year contract and the return of cost-of-living adjustments. They would also gain the right to strike to shut down factories for the first time in UAW history.
In response to the UAW strike, which began in mid-September, Stellantis said it was taking emergency action to preserve the company’s North American operations. The automaker canceled scheduled events, including The Los Angeles Auto Show and the annual CES technology conference in Las Vegas.
Earlier this year, citing the cost of electricity, Stellantis temporarily closed an assembly plant in Illinois but agreed to reopen the facility as part of the deal with the UAW. The automaker has lagged behind its rivals in introducing electric vehicles in the United States, but it plans to invest about $53 billion to reach its goal of selling 100% of its electric vehicles in Europe and 50% in the United States by 2030.
Pending ratification of the union agreement, the company also plans to extend the buyout period for voluntary retirement for workers represented by eligible unions, according to a UAW summary of the agreement. It will be a retirement incentive $50,000 before taxes The UAW advertised an unlimited number of qualified workers in production and skilled roles.
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