The UAW Calls Out Stellantis CEO for Price Gouging and Labor Contract Violations

In a recent video statement, United Auto Workers President Shawn Fain launched a scathing attack on Stellantis CEO Carlos Tavares. Fain accused Tavares of engaging in price gouging practices that harm consumers and criticized the CEO for failing to uphold certain aspects of the labor contract with the automaker. These accusations come in the wake of contentious collective bargaining talks between the UAW and Detroit automakers, including Stellantis.

Fain highlighted the declining sales and profits at Stellantis while noting a significant increase in CEO pay. According to Fain, Stellantis has been selling fewer cars but making higher profits, which he views as a clear indication of price gouging. Moreover, Fain alleged that Stellantis has reneged on its commitments outlined in the labor contract, specifically mentioning the decision to halt the reopening of an assembly plant in Illinois.

Response from Stellantis

While the union and the automaker have yet to respond to the specific accusations made by Fain, Stellantis CEO Carlos Tavares recently criticized the UAW-Stellantis workforce for quality issues at a truck plant in metro Detroit. Tavares has been implementing cost-cutting measures since the merger between Fiat Chrysler and France’s PSA Groupe to increase profits and revenue. This has involved headcount reductions across various regions, including North America.

Under Tavares’ leadership, Stellantis has reduced its headcount by 15.5% or around 47,500 employees between December 2019 and the end of 2023, with a 14.5% reduction in North America alone. These cost-saving measures are part of Tavares’ ambitious plan to double revenue to 300 billion euros by 2030. Despite the company’s efforts to streamline operations and reduce expenses, there have been criticisms regarding the severity of the cuts, with some executives describing them as excessive.

Pushback and Future Challenges

Tavares has defended the company’s cost-cutting efforts, pushing back against suggestions that they are the cause of Stellantis’ current challenges. The ongoing tensions between the UAW and Stellantis highlight the complexities of labor relations in the automotive industry, particularly in the face of changing market dynamics and the push for increased profitability. As both sides continue to negotiate and navigate these issues, the future of Stellantis and its workforce remains uncertain.