Head of Stellantis North America Responds to UAW President’s Rejection of Contract Proposal
The head of Stellantis in North America, Mark Stewart, has expressed his disappointment and frustration after United Auto Workers (UAW) President Shawn Fain publicly dismissed the company’s contract proposal. Fain’s dramatic Facebook Live video, in which he referred to the proposal as “trash,” has sparked tensions between Stellantis and the UAW.
Stellantis, the parent company of popular brands such as Jeep, Ram, Chrysler, Dodge, and Fiat, is currently engaged in negotiations with the UAW, as well as Ford and General Motors, ahead of the expiration of their contracts next month. The talks have been marked by assertive comments from the union, leading to predictions of a potential strike.
In a letter addressed to employees and posted on a company website, Stewart criticized Fain’s approach, stating that it does not accurately represent the ongoing negotiations. He emphasized that theatrics and personal insults will not contribute to reaching an agreement that upholds the company’s commitment to providing fair wages and benefits to its employees while remaining competitive in the market. Stewart called for a focus on reality and a calm approach from all parties involved.
Stewart also dismissed the notion that Stellantis is not taking UAW demands seriously. The union’s demands include double-digit pay increases, restoration of cost-of-living adjustments, and the right to strike over plant closures, among other issues. Stewart assured employees that the company’s negotiators are actively listening to the union’s position and seeking to understand their perspective. He urged Fain to demonstrate the same courtesy and professionalism, emphasizing that it is too early to draw conclusions about the outcome of the negotiations.
The UAW previously highlighted the absence of Stellantis CEO Carlos Tavares at the opening of contract talks last month, as well as Stewart’s late arrival. Fain described this as the beginning of the most critical bargaining period in the company’s history. Experts, such as Harley Shaiken, a professor emeritus at the University of California, Berkeley, have criticized Tavares’ decision, stating that symbolism plays a significant role in negotiations.
Fain and other union officials have repeatedly pointed out the substantial profits made by automakers in recent years, coupled with significant compensation for top executives. They argue that the companies should share more of the profits with their employees. Fain claimed that Stellantis’ proposal sought major concessions on various issues, including vacations and temporary worker caps.
Automakers, however, have warned that the costs associated with the transition to electrification and competitive pressures limit their ability to meet union expectations. They have also highlighted the significant profit-sharing checks that have been distributed to workers.
Stewart’s letter also emphasized that agreeing to Fain’s demands could jeopardize the company’s ability to make decisions that ensure job security for employees. He stressed that this would be detrimental to all parties involved, including employees, families, and customers.
Fain recently held an online session with U.S. Senator Bernie Sanders, during which they discussed several themes raised by the UAW, including extreme wealth disparity. They also spoke with workers from Ford, GM, and Stellantis, who shared their challenges in affording the vehicles they help produce due to low pay and demanding work conditions that sometimes impact their mental health.
One particularly poignant moment during the session occurred when Michelle Collins, a GM worker from Indiana, described working 12-hour shifts for 90 consecutive days during a vehicle launch in Tennessee in 2016. Sanders expressed his disbelief and highlighted the need for greater awareness of the challenges faced by workers.
The negotiations between Stellantis and the UAW continue, with both sides hoping to reach an agreement that addresses the concerns of employees while ensuring the company’s competitiveness in the market.
Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber.
How has Stellantis North America’s CEO responded to the United Auto Workers’ rejection of their contract proposal?
Stellantis North America’s CEO, Mark Stewart, has responded to the United Auto Workers (UAW) President Shawn Fain’s rejection of the company’s contract proposal. Stewart expressed his disappointment and frustration with Fain’s public dismissal of the proposal, leading to tensions between Stellantis and the UAW.
Stellantis, the parent company of popular automotive brands, including Jeep and Dodge, is currently engaged in negotiations with the UAW, Ford, and General Motors ahead of the expiration of their contracts next month. These talks have been marked by assertive comments from the union, which has raised the possibility of a strike.
In a letter posted on the company’s website, Stewart criticized Fain’s approach, stating that it does not accurately represent the ongoing negotiations. He emphasized the need for a calm and realistic approach, suggesting that theatrics and personal insults would not lead to an agreement that both provides fair wages and benefits to employees and maintains the company’s competitiveness in the market.
Stewart also dismissed the notion that Stellantis is not taking UAW demands seriously. The union has made several demands, including double-digit pay increases and the right to strike over plant closures. Stewart assured employees that the company’s negotiators are actively listening to the union’s position and seeking to understand their perspective. He called on Fain to demonstrate the same professionalism and emphasized that it is too early to draw conclusions about the outcome of the negotiations.
The absence of Stellantis CEO Carlos Tavares at the opening of contract talks last month, as well as Stewart’s late arrival, had previously been highlighted by the UAW. Fain described this as a critical bargaining period. Experts have criticized Tavares’ absence, emphasizing the importance of symbolism in negotiations.
Fain and other union officials have repeatedly pointed out the sub
“Looking forward to hearing CEO’s viewpoint on the contract proposal and how it impacts the future of Stellantis North America.”