In a recent video posted by United Auto Workers President Shawn Fain, Stellantis CEO Carlos Tavares was heavily criticized for various issues. Fain accused Tavares of price gouging consumers and failing to uphold parts of the union’s labor contract with the automaker. These comments come after contentious collective bargaining talks last year between the UAW and Detroit automakers, including Stellantis. Fain pointed out that while sales and profits are down at Stellantis, CEO pay has significantly increased. This has raised concerns about the direction in which the company is headed under Tavares’ leadership.
One of the main accusations made by Fain in the video is that Stellantis is not honoring parts of the company’s worker contract. He specifically mentioned the company halting plans to reopen an assembly plant in Illinois, which goes against the commitments made in the previous contract. Fain also criticized Tavares for what he believes is price gouging, citing the fact that Stellantis has been making more profits despite selling fewer cars. This has led to a decline in sales and raised concerns about the company’s overall strategy under Tavares’ leadership.
At the time of the video’s release, spokespeople for the union and automaker did not immediately respond to the accusations made by Fain. However, Tavares recently criticized the UAW-Stellantis workforce for quality problems at a truck plant in metro Detroit. The company has also announced thousands of layoffs at U.S. plants due to declining sales and product changes. Tavares has been focused on a cost-cutting mission since the merger between Fiat Chrysler and PSA Groupe in January 2021, aiming to increase profits and double revenue by 2030. This has included reshaping the company’s supply chain, operations, and headcount reductions for both salaried and hourly workers.
Stellantis has reduced its headcount by 15.5%, or roughly 47,500 employees, between December 2019 and the end of 2023, with a 14.5% reduction in North America alone. These cost-saving measures have been described as grueling and excessive by some executives. However, Tavares has pushed back on the idea that the company’s current problems are a result of its cost-cutting efforts. The situation has raised concerns about the well-being of employees and the overall performance of the company under Tavares’ leadership.
The ongoing tensions between UAW President Shawn Fain and Stellantis CEO Carlos Tavares highlight the challenges the company is facing. Accusations of price gouging, contract violations, and mismanagement have raised serious concerns about the direction in which Stellantis is headed. As both sides continue to clash, the impact on employees and the company’s overall performance remains uncertain.
Leave a Reply