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Stellantis offers 3,500 employee buyouts to make way for EVs

By 2030, Stellantis plans to introduce 25 all-electric cars for the American market.

Stellantis is looking to reduce its hourly workforce by as many as 3,500 employees through buyouts. 

Last week, Shawn Fain, the recently elected president of the UAW, and Stellantis spoke about their “fractured” relationship regarding Stellantis’ electrification strategy and the subsequent indefinite shutdown of the Belvidere Assembly plant in Illinois back in February, which impacted 1,350 employees. 

By 2030, Stellantis plans to introduce 25 all-electric cars for the American market. Since EVs are 40% more expensive than their internal combustion engine rivals, CEO Carlos Tavares has underlined the need to find reductions.

In a letter written by Dough McIntosh, president of Local 1264, representing workers at the automaker’s stamping plant in Sterling Heights, he claims: “The local’s leaders discussed incentive programs that would be available corporate-wide in a conference call with UAW Vice President Rich Boyer. During negotiations, we discussed two incentive packages.”

He continues, “For seniority employees employed before the 2007 accord, the incentive package for retirement, or “IPR,” would offer $50,000. For workers with at least one year of seniority, the voluntary termination of employment program, or “VTEP,” provides a “guaranteed lump sum benefit payment.”

According to McIntosh, May 6 through June 19 are the tentative sign-up dates. Dates for separation would start on June 30 and continue until the end of the year. Within the next few weeks, packages will be mailed to qualified employees.

In addition, Marick Masters, a management professor at Wayne State University,, “Stellantis’ prospective proposals appear to show that the manufacturer is trying to minimize hourly layoffs and maintain strong relations with the union as it frees up funds for electrification.”

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Jaelyn Campbell
Jaelyn Campbell
Jaelyn Campbell is a staff writer/reporter for CBT News. She is a recent honors cum laude graduate with a BFA in Mass Media from Valdosta State University. Jaelyn is an enthusiastic creator with more than four years of experience in corporate communications, editing, broadcasting, and writing. Her articles in The Spectator, her hometown newspaper, changed how people perceive virtual reality. She connects her readers to the facts while providing them a voice to understand the challenges of being an entrepreneur in the digital world.

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