- The Jeep automaker will offer buyouts to 6,400 nonunion employees, citing an effort ‘to protect our operations’ as they transition to electric vehicles
- Stellantis said the United Auto Workers strike cost the company $3.2 billion in lost revenue and $800 million in profits
Automaker Stellantis is set to offer buyout or early retirement packages to 6,400 nonunion employees just weeks after striking a deal with the United Auto Workers union in the wake of a costly historic strike.
The maker of Jeep and Dodge is offering what they said is a favorable benefits package to workers who would like to leave the company or retire in an effort ‘to protect our operations and the company.’
Just days after reaching an tentative agreement with the United Auto Workers in October, Stellantis said that the six-week strike had cost the company $3.2 billion in lost revenue and $800 million in profits.
‘As the U.S. automotive industry continues to face challenging market conditions, Stellantis is taking the necessary structural actions to protect our operations and the Company,’ Stellantis said in statement to CNBC.
‘As we prepare for the transition to electric vehicles, Stellantis announced today that it will offer a voluntary separation package to assist those non-represented employees who would like to separate or retire from the Company to pursue other interests with a favorable package of benefits.’
The Jeep automaker will offer buyouts and early retirement packages to 6,400 nonunion employees
The company said the six-week long union strike cost the company $3.2 billion in lost revenue and $800 million in profits
The automaker’s current stock on price on Tuesday is $19.68, up 22.24 percent over the last six months. The stock price remained steady over the six-week strike starting on September 15.
The company posted net income of just over $12 billion in the first half of the year, but it said the strike cost them $795 million.
CEO Carlos Tavares is leading the company through its transition to electric vehicles and is executing the Dare Forward 2030 plan, the company’s strategy to be carbon net zero by 2038.
In October, the company announced it will open a new battery plant in Kokomo, Indiana.
In February, the Jeep maker closed its electric vehicle plant in Belvidere, Illinois and moved production to Mexico.
As part of the United Auto Workers union negation, they secured the reopening of the plant.
During the 46-day long strike, approximately 14,300 Stellantis employees walked off the job and the company furloughed 2,045 workers across three states.
The union said the tentative contract with the auto giant includes a 25 percent raise in base wages by 2028. As well as, cost of living adjustments that will cumulatively raise the top wage by 33 percent, to over $42 an hour.
The buyouts will be offered to 6,400 of its 12,700 nonunion employees with five or more years of employment. Employees have until December 8 to accept the offer.
Stellantis CEO Carlos Tavares is leading the automaker through the transition to electric vehicles
Workers with five to nine years of service would get three months of base pay under the offers, while those with 10 to 14 years would get six months.
Workers with 15-19 years would get nine months of base pay and those with 20 or more years would get a full year, the company said.
In the UAW contract, the automaker can offer $50,000 buyouts to veteran workers in 2024 and 2026.
In April, Stellantis offered voluntary exit packages U.S. employees including 31,000 hourly workers, 2,500 salaried and some Canadian employees.