UAW President Shawn Fain presides over the 2023 Special Election Collective Bargaining Convention in Detroit, Michigan, USA on March 27, 2023.
Rebecca Cook | Reuters
DETROIT — UAW President Shawn Fain steps up criticism of UAW Strantis Chief Executive Carlos Tavares accused the automaker in a video Friday afternoon of price-gouging consumers and failing to abide by parts of the union’s labor contract with the automaker.
The comments are the latest in an ongoing back-and-forth between the executive and union leaders following last year’s contentious collective bargaining negotiations between the UAW and Detroit automakers including Stellantis.
“Something is rotten in Stratis,” Finn said. 2 minutes and 30 seconds video Published on Friday. “Sales are down, profits are down, and CEO pay has gone up dramatically. The problem is not the market for GM and Ford, car sales are up, the problem is not the autoworkers. The problem is this man, Carlos Tavares. “
Spokespeople for the union and the automaker did not immediately respond to requests for comment about the allegations or the film.
Some of the criticism, including about layoffs and Tavares’ pay, is nothing new. But Fein’s comments on Friday went further, accusing Tavares of gouging consumer prices in the name of profits. He also claimed that Stellantis was not honoring some of the company’s worker contracts and specifically noted that Stellantis was halting plans to reopen an assembly plant in Illinois.
“The fact is, over the years, Stellantis has sold fewer cars, but its profits have increased. What does that tell you? They’re price gouging. Now they’ve gone too far, and their own sales are down,” Fein said. . “In fact, Stellantis CEO Carlos Tavares is trying to renege on the promises the company made in its last contract, including halting the reopening of the Belvedere Assembly.”
Tavares recently criticized UAW-Stellantis employees, citing quality issues at a metro Detroit truck plant that builds Ram 1500 pickup trucks. The company also announced thousands of layoffs at U.S. factories due to falling sales and product changes.
“The immediate run rates for some of the programs we started with Sterling Heights SHAP were not good,” Tavares told reporters on July 25 while discussing current issues with the company. “This is something we need to address with our plant management team and our employees.”
Stellantis CEO Carlos Tavares speaks to the media after an investor day at the company’s North American headquarters in Auburn Hills, Michigan, June 13, 2024.
Michael Weiland/CNBC
Tavares has been on a mission to cut costs since Fiat Chrysler merged with France’s PSA Group in January 2021 to form the company. Double revenue to €300 billion ($32.5 billion) by 2030.
Cost-saving measures include reshaping the company’s supply chain and operations and reducing the number of salaried and hourly workers.
According to public documents, Stellantis has laid off 15.5% of its workforce, or about 47,500 employees, from December 2019 to the end of 2023, including 14.5% in North America. This does not include further layoffs and layoffs this year.
Several senior executives previously told CNBC that the layoffs were severe and even excessive. Tavares last month pushed back against the idea that the company’s cost-cutting efforts contributed to the current problems.
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