UAW President Shawn Fain presides over the 2023 Special Election Collective Bargaining Convention in Detroit, Michigan, USA on March 27, 2023.
Rebecca Cook | Reuters
DETROIT — UAW President Shawn Fain steps up criticism of UAW Strantis Chief Executive Carlos Tavares accused the automaker in a video Friday afternoon of price-gouging consumers and failing to abide by parts of the union’s labor contract with the automaker.
The comments are the latest in an ongoing back-and-forth between chief executives and union leaders Controversial collective bargaining The UAW held talks with Detroit automakers last year, including Stellantis.
“Something is rotten on Stlantis,” Finn said. 2 minutes and 30 seconds video Published on Friday. “Sales are down, profits are down, and CEO pay has gone up dramatically. The problem is not the market for GM and Ford, car sales are up, the problem is not the autoworkers. The problem is this man, Carlos Tavares. “
Spokespeople for the union and the automaker did not immediately respond to requests for comment about the allegations or the film.
Some of the criticism, including about layoffs and Tavares’ pay, is nothing new. But Fein’s comments on Friday went further, accusing Tavares of gouging consumer prices in the name of profits. He also claimed that Stellantis was not honoring some of the company’s employee contracts and specifically noted that Stellantis was halting plans Reopening Illinois assembly plants.
“The fact is, over the years, Stellantis has sold fewer cars, but its profits have increased. What does that tell you? They’re price gouging. Now they’ve gone too far, and their own sales are down,” Fein said. . “In fact, Stellantis CEO Carlos Tavares is trying to renege on the promises the company made in its last contract, including halting the reopening of the Belvedere Assembly.”
Tavares recently criticized UAW-Stellantis employees, citing quality issues at a metro Detroit truck plant that builds Ram 1500 pickup trucks. The company also announced Thousands of jobs laid off Things have changed at U.S. factories amid falling sales and product changes.
“The immediate run rates for some of our programs starting with SHAP, Sterling Heights were not good,” Tavares said. tell reporters July 25 to discuss ongoing issues with the company. “This is something we need to address with our plant management team and our employees.”
Stellantis CEO Carlos Tavares speaks to the media after an investor day at the company’s North American headquarters in Auburn Hills, Michigan, June 13, 2024.
Michael Weiland/CNBC
Tavares has been on a mission to cut costs since Fiat Chrysler merged with France’s PSA Group in January 2021 to form the company. Double revenue to €300 billion ($32.5 billion) by 2030.
Cost-saving measures include reshaping the company’s supply chain and operations and reducing the number of salaried and hourly workers.
According to public documents, Stellantis has laid off 15.5% of its workforce, or about 47,500 employees, from December 2019 to the end of 2023, including 14.5% in North America. This does not include further layoffs and layoffs this year.
Many senior executives have previously described the cuts to CNBC Tiring to the point of being excessive. Tavares postponed last month The company’s cost-cutting efforts are believed to have contributed to the current problems.
