UAW Local leaders call out Stellantis over layoffs in Michigan and other states, claim mismanagement
(CBS DETROIT) — Stellantis workers and United Auto Workers local leaders are concerned about the automaker's future, as the company announced another 1,000 workers will be laid off at its plant in Toledo, Ohio.
"It is management's mismanagement, and ultimately, it falls on (Stellantis CEO) Carlos Tavares for these problems," said Luigi Gjokaj, UAW Local 51 vice president.
Gjokaj says he believes Stellantis's recent struggles are a result of mismanagement, not poor market conditions, as the company stated in a statement last week.
"It's a complete fallacy. How can you cite market conditions when Ford and GM just reported in their fourth quarter? I wanna say double-digit overprocess, so record profits again. It's not the market it's mismanagement," Gjokaj said.
Gjokaj said the roughly 4,000 layoffs across Michigan, Ohio, and Indiana are causing a rift among union members. He said the company is waiting as long as it legally can notify the union of its plan, which is making it difficult to notify the union members of what's happening.
"And I believe the company is using this tactic to sow discord and content among membership so that we take our eye off the ball and always remember that it is the company's fault," Gjokaj said.
"This is definitely a management problem," said automotive expert John McElroy.
McElroy said the company is certainly struggling with management, however, he said there are a lot more issues to contend with.
"The company has got so many products that are so expensive in the market right now it's been trying to adjust prices down. Add more incentives - to throttle back on production. Some of the signs are a little bit encouraging, but it's got a long way to go," McElroy said.
Moving forward, Gjokaj said the union is considering all options to address the layoffs at Stellantis.
"We're doing everything we can. We're exploring filing grievances, and if we have to strike, that's an avenue as well," he said.