Get 40% Off
🔥 This hedge fund gained 26.16% in the last month. Get their top stocks with our free stock ideas tool.See stock ideas

Chrysler owner calls for focus on reality in UAW labor talks

Published 08/11/2023, 09:52 AM
Updated 08/11/2023, 01:20 PM
© Reuters. People attend a Stellantis presentation at the New York International Auto Show, in Manhattan, New York City, U.S., April 5, 2023. REUTERS/David 'Dee' Delgado
GM
-
F
-
STLA
-

By David Shepardson

(Reuters) -Chrysler parent Stellantis sharply criticized the demands of the United Auto Workers (UAW) union on Friday, saying they need "a focus on reality from everyone involved."

Stellantis North America Chief Operating Officer Mark Stewart said in a letter to employees seen by Reuters the automaker is "committed to working with the UAW to reach an agreement based on economic realism."

A UAW spokesman declined immediate comment on Stewart's letter, but earlier this week UAW President Shawn Fain called the Stellantis proposals "trash" and tossed a copy of them in a waste basket in live streamed remarks.

Stewart added that agreeing to Fain's "demands could endanger our ability to make decisions in the future that provide job security for our employees. This is a losing proposition for all of us."

The current four-year contracts with Stellantis, General Motors (NYSE:GM) and Ford Motor (NYSE:F) expire Sept. 14.

The UAW has said it is seeking "audacious and ambitious" improvements, including pay raises of more than 40% over four years, significant additional time off, and a restoration of defined-benefit pensions previously eliminated for newer workers.

Fain Tuesday criticized numerous concessions Stellantis is seeking.

"Stellantis proposals are a slap in the face," Fain said disclosing the company was proposing cuts to healthcare coverage, fewer vacation days for new hires and lifting a cap on temporary employees.

Stewart said Fain did not fairly represent the negotiations.

"The theatrics and personal insults will not help us reach an agreement," Stewart wrote, adding "now is the time to come to the table with open minds and a commonsense approach." He added "at this very early stage, no one should jump to any conclusions about the outcome of the process."

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Stellantis has made proposals aimed at reducing absenteeism and cutting pension, healt-care and other costs, saying that amid government electric vehicle rules, it was imperative to "find ways to reduce the overall fixed cost structure of our business".

The UAW also said the company opposes an end to two-tier wages, a practice of newer hires getting paid much less than veteran workers.

Two people briefed on the matter told Reuters this week automakers have estimated the UAW's contract demands could raise the current mid-$60-per-hour labor rate to more than $150 per hour.

Latest comments

Stellantis, Ford, and Gm. Payup!!
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.