UAW President Shawn Fain has intensified his criticism of Stellantis CEO Carlos Tavares, accusing him of price gouging consumers and failing to uphold parts of the union’s labor contract with the automaker. In a video posted on Friday, Fain claimed that “something is rotten at Stellantis,” pointing out that sales and profits are down while CEO pay is up. Fain attributed the decline in sales and profits to Tavares’ alleged price gouging practices and accused the CEO of going back on commitments made in the last contract, specifically mentioning the halt in reopening the Belvedere Assembly in Illinois.
These accusations are not entirely new, as Fain has previously criticized Tavares for job cuts and his high pay. However, Fain’s latest comments take the claims further by accusing Tavares of prioritizing profits over consumers and disregarding the union’s labor contract. It is worth noting that neither the union nor Stellantis has responded to these allegations at the time of this writing.
Tavares, on the other hand, has also been vocal about the challenges faced by the UAW-Stellantis workforce. He recently highlighted quality issues at a truck plant in metro Detroit that produces the Ram 1500 pickup truck. The company has also announced thousands of layoffs in its U.S. plants due to declining sales and changes in products. Tavares acknowledged these problems and emphasized the need to address them with the plant management team and the employees.
It is important to consider the context in which these criticisms and counter-criticisms are taking place. Since the merger between Fiat Chrysler and France’s PSA Groupe in January 2021, Tavares has been implementing cost-cutting measures as part of his “Dare Forward 2030” plan to increase profits and double revenue by 2030. These measures include reshaping the company’s supply chain and operations, as well as reducing headcount for both salaried and hourly workers.
According to public filings, Stellantis has already reduced its headcount by 15.5% or approximately 47,500 employees between December 2019 and the end of 2023, with a 14.5% reduction in North America alone. These figures do not even account for further headcount reductions and layoffs that may occur this year. Some executives have described these cuts as excessive and grueling.
Tavares has pushed back against the notion that the company’s cost-cutting efforts are to blame for its current problems. He believes that these measures are necessary to achieve the company’s long-term goals of increasing profits and revenue. However, the ongoing disputes between the UAW and Stellantis highlight the challenges faced by both parties in navigating the changing landscape of the automotive industry.
In conclusion, the tensions between UAW President Shawn Fain and Stellantis CEO Carlos Tavares continue to escalate, with Fain accusing Tavares of price gouging and failing to honor the union’s labor contract. Meanwhile, Tavares has acknowledged quality issues and the need for improvement within the company. These conflicts shed light on the larger issues of cost-cutting measures, declining sales, and the changing dynamics of the automotive industry. It remains to be seen how these disputes will be resolved and what impact they will have on the relationship between Stellantis and the UAW.
