Stellantis NV terminated more than 200 supplemental workers at one of its Detroit warehousing facilities, intensifying the strain between the auto manufacturer and its unionized workforce. This move comes even as the company pledges adherence to its recent labor agreement with the United Auto Workers (UAW) aimed at optimizing operations under challenging market conditions.
"Stellantis continues to review its manufacturing operations to ensure all facilities are operating as efficiently as possible in very challenging market conditions with all actions in accordance with the 2023 Collective Bargaining Agreement," the company said in a recent statement to the Detroit Free Press, sent by spokesperson Jodi Tinson, referencing last fall's deal with the UAW. "To ensure compliance with contractual commitments, the Company has been reducing the number of Supplemental Employees across much of our U.S. footprint."
The latest job cuts affected 239 workers at the Freud Street parts sequencing facility near the company's Jefferson North Assembly Plant. Although about 20 employees were rehired due to staffing needs, the reduction marks a continuation of Stellantis' strategy to decrease its reliance on supplemental workers, who are typically paid less and receive fewer benefits than regular full-time employees.
The transition has not been seamless. Some 539 were let go in January across several facilities, with another 341 cut early last month from the Toledo Assembly Complex. These widespread layoffs have spurred unrest among remaining employees, with workers at the Toledo Jeep plant launching a petition demanding the reinstatement of more than 1,000 terminated supplemental workers with full back-pay.
This upheaval coincides with significant layoffs in other areas of the company, including about 400 white-collar employees in engineering and software divisions in March, as reported by The Detroit News. Bruce Baumhower, president of UAW Local 12, said there have also been recent layoffs at KUKA and Syncreon, two key suppliers to Toledo's Jeep plant.
Under the recent UAW contract, Stellantis committed to converting nearly 3,000 supplemental workers to full-time status out of more than 5,200 employed nationwide as of last fall, completing these conversions by Feb. 16. However, ongoing layoffs and the plan to retain only about 500 supplemental employees have ignited concerns about job security and company loyalty among the workforce.
