Stellantis Cutting Jobs to Deal with Market Conditions

Automaker Stellantis is trimming almost 200 jobs at the Sterling Heights (Mich.) Automotive Assembly plant, a step that is likely to worsen its strained relations with the United Autoworkers union. The UAW earlier this month filed a grievance against Stellantis with the National Labor Relations Board alleging the company is reneging on commitments made in the 2023 labor agreement.

In a statement Stellantis confirmed it is reducing the UAW workforce at multiple locations as it works to address “continued intense external market conditions and, at the same time, (offer) customers vehicles they can afford. We are continuing to take the necessary actions to improve operations…including implementing indefinite layoffs of represented employees across its (sic) footprint”.

According to a UAW report, the automaker will cut 191 workers at Sterling Heights, of whom 177 listed as temporary or supplemental workers. More supplemental workers are due to be terminated at the Toledo (Ohio) Assembly Complex.

The Michigan plant assembles the RAM 1500 light pickups and the Ohio plant assembles Jeep Wrangler SUVs and Gladiator pickups.

The company has not listed the full scope of its workforce reductions. It has said that the supplemental workers were due to end their employment on October 1, having been hired to help fill in for vacationing workers during summer vacations.