Stellantis laying off nearly 200 workers at Sterling Heights plant
(CBS DETROIT) - Stellantis is laying off nearly 200 workers at Sterling Heights Assembly Plant, where the automaker is preparing to produce the first battery-electric 2025 Ram 1500 REV truck.
The parent company of 14 brands, including Chrysler, Dodge and Jeep, said it will lay off seasonal supplemental employees and indefinitely lay off some union workers.
The seasonal supplemental employees were hired to help with production during the summer months and will be laid off early next week.
"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," said Stellantis in a statement.
In addition to these seasonal workers, others will be laid off to protect the automaker from the current market conditions and allow them to produce cars that consumers can afford.
"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," according to a statement from the automaker. "As such, we are continuing to take the necessary actions to improve operations across our facilities; this includes on-going assessments of our manufacturing processes to improve efficiency. While that effort continues, the Company will be implementing indefinite layoffs of represented employees across its footprint."
In a letter to Local 1700 workers, union leadership said 177 seasonal workers will be terminated, and 14 full-time union workers will be laid off indefinitely.
This comes after Stellantis announced it is investing $406 million in three Michigan facilities, including the Sterling Heights Assembly Plant, as they prepare to produce the Stellantis' first battery-electric 2025 Ram 1500 REV light-duty truck.
"They (layoffs) come on the heels of a major dispute between Stellantis and United Auto Workers over whether the company has lived up to its commitments made in the 2023 contract," said Marick Masters, a Wayne State professor emeritus of business.
Masters says the decision made by the Big Three automakers to cut jobs will only escalate frustrations further with the rank and file of the UAW.
"This just adds fuel to the fire and could result in another unfair labor practice filing," he said.
UAW President Shawn Fain has been vocal about Stellantis not holding up its end of the bargain in a contract agreed upon last year, which Masters says raises the possibility of a strike.