DETROIT – United Auto Employees President Shawn Fain ratcheted up criticism of Stellantis CEO Carlos Tavares in a video Friday afternoon, accusing the chief government of worth gouging customers and failing to uphold elements of the union’s labor contract with the automaker.
The feedback are the newest in an ongoing back-and-forth between the CEO and union chief following contentious collective bargaining talks final yr between the UAW and Detroit automakers, together with Stellantis.
“One thing is rotten at Stellantis,” Fain stated to start the two:30-minute video posted Friday. “Gross sales are down, income are down, and CEO pay is method, method up. The issue is not the market at GM and Ford, auto gross sales are up, and the issue is not the auto employees. The issue is that this man, Carlos Tavares.”
Spokespeople for the union and automaker didn’t instantly reply for remark relating to the accusations or video.
A number of of the criticisms, together with these round job cuts and Tarvares’ pay, aren’t new. However Fain’s feedback Friday took the claims a step additional, accusing Tavares of worth gouging customers within the identify of income. He additionally alleges that Stellantis isn’t honoring elements of the corporate’s employee contract, citing particularly that Stellantis is halting plans to reopen an meeting plat in Illinois.
“Truth, for years, Stellantis has offered fewer automobiles, however made extra in income. What does that inform you? They’re worth gouging. Now they’ve gone too far, they usually’re tanking their very own gross sales,” Fain stated. “Truth, Stellantis CEO Carlos Tavares is making an attempt to return on commitments the corporate made in our final contract, together with placing the brakes on reopening the Belvedere Meeting.”
Tavares not too long ago criticized the UAW-Stellantis workforce, noting high quality issues at a truck plant in metro Detroit producing the Ram 1500 pickup truck. The corporate additionally has introduced 1000’s of layoffs at U.S. crops amid declining gross sales and product adjustments.
“The direct run price of a few of our plans beginning with SHAP, Sterling Heights, isn’t good,” Tavares instructed reporters July 25 whereas discussing ongoing points with the corporate. “That’s one thing that we have to repair with our plant administration group as effectively with our individuals.”
Tavares has been on a cost-cutting mission because the firm was fashioned by way of a merger between Fiat Chrysler and France’s PSA Groupe in January 2021. It is a part of his “Dare Ahead 2030” plan to extend income and double income to 300 billion euros ($325 billion) by 2030.
The associated fee-saving measures have included reshaping the corporate’s provide chain and operations in addition to headcount reductions for each salaried and hourly employees.
Stellantis has diminished headcount by 15.5%, or roughly 47,500 staff, between December 2019 and the top of 2023, together with a 14.5% discount in North America, in keeping with public filings. That does not embrace additional headcount reductions and layoffs this yr.
A number of executives beforehand described the cuts to CNBC as grueling to the purpose of excessiveness. Tavares final month pushed again on the concept that the corporate’s cost-cutting efforts have led to its present issues.