Stellantis looking to offer buyouts to cut hourly workforce by 3,500, UAW local says
(CBS DETROIT) - A major automaker is looking to offer buyouts in a way to reduce the hourly workforce by 3,500, according to a United Auto Workers local.
In a letter Monday from UAW Local 1264 president Doug McIntosh, who represents the Sterling Heights Stamping Plant, the incentives would be offered companywide for skilled and production workers. McIntosh says they had a conference call with International UAW President Rick Boyer to go over the incentive packages.
Two packages would be offered:
- Incentive Package for Retirement (IPR): includes $50,000 for seniority members hired for the 2007 agreement.
- Voluntary Termination Employment Program (VTEP): provides guarantee lumpsum benefit payment and is opened to employees with at least one year seniority.
Tentative sign-up dates are scheduled for May 6 through June 19, with the separation dates scheduled for June 30 to Dec. 31. Packages would be mailed to eligible employees in the next week or so.
McIntosh says employees indefinitely laid off would have the opportunity to fill in created openings.