UAW President Shawn Fain expressed his outrage at the contract proposals from Stellantis, the owner of Jeep, Ram, Chrysler, Dodge and Fiat brands, during a live update on Facebook on Tuesday. Fain accused the company of trying to gut the benefits and rights of the union members, and threatened to take action if the company does not get serious.
Stellantis’ Proposals: A Slap in the Face
Fain said that he was shocked and disgusted by the proposals that Stellantis presented to the union, which he said were contrary to the company’s promise not to seek a concessionary agreement. Fain said that he took the proposals and threw them into the wastebasket, as they were an insult to the hard work and sacrifices of the union members.
According to Fain, some of the proposals that Stellantis made include:
- Creating new tiers of workers with lower wages and benefits
- Threatening the profit sharing formula that rewards workers for their productivity and quality
- Cutting medical coverage and 401(k) contributions for workers
- Reducing vacation time for new hires
- Eliminating the cap on the use of temporary workers
- Gutting transfer rights based on seniority
- Allowing the company to reopen the contract and make changes without a member vote
Fain said that these proposals would deepen divisions among workers, make life harder and more stressful for them, and undermine their dignity and respect.
Stellantis’ Profits: A Double Standard
Fain contrasted Stellantis’ proposals with its record profits and CEO compensation. He said that Stellantis made $15.2 billion in adjusted operating income in North America in 2022, and $8.88 billion in the first half of 2023. He also said that Stellantis CEO Carlos Tavares saw his salary grow by 72% over the past four years, and that he made $24.8 million in 2022.
Fain said that it was unfair and unacceptable that Stellantis was rewarding its executives and shareholders with billions of dollars, while asking its workers to accept cuts and concessions. He said that Stellantis was also engaging in stock buyback schemes that benefit the rich, while some workers live paycheck to paycheck.
Fain said that Stellantis should honor the sacrifices and contributions of its workers, who risked their lives during the Covid pandemic to keep the production lines running. He said that the workers deserve more than what Stellantis is offering, and that they will not settle for less.
UAW’s Demands: A Fair Deal
Fain reiterated the demands that the UAW presented to Stellantis last week, which he said were audacious and ambitious, but also fair and reasonable. He said that the UAW’s demands include:
- Eliminating wage tiers for full-time workers
- Expanding profit sharing to supplemental workers
- Providing pensions and retirement health-care coverage for all workers
- Reducing the work week to 32 hours while paying workers for 40
- Granting a 46% wage hike over four years
Fain said that these demands reflect the value and worth of the union members, who have made Stellantis one of the most profitable automakers in the world. He said that these demands are also necessary to address the rising cost of living, inflation, and interest rates.
Fain said that the UAW is ready to fight for these demands, and that it has a healthy strike fund and a plan in case of a work stoppage. He said that he hopes that Stellantis will come back to the bargaining table with a better offer, but if not, he warned that the union will take action on Sept. 14, when the current contract expires.
