United Auto Workers President Shawn Fain recently released a video where he strongly criticized Stellantis CEO Carlos Tavares. Fain accused Tavares of price gouging consumers and failing to honor parts of the union’s labor contract with the automaker. This video marks the latest development in an ongoing dispute between the CEO and the union leader following contentious collective bargaining talks last year between the UAW and several Detroit automakers, including Stellantis.
In the video, Fain alleges that sales and profits at Stellantis are down while CEO pay has increased significantly. He goes on to claim that Stellantis has been selling fewer cars but making more profits, suggesting that the company is engaged in price gouging. Fain also accuses Tavares of not honoring commitments made in the company’s last contract, specifically pointing out that Stellantis has halted plans to reopen an assembly plant in Illinois. These accusations take the criticism of Tavares to a whole new level, indicating a deepening rift between the union and the automaker.
In response to Fain’s video, Tavares recently criticized the UAW-Stellantis workforce, highlighting quality issues at a truck plant in metro Detroit producing the Ram 1500 pickup truck. The CEO has been implementing cost-cutting measures since the merger between Fiat Chrysler and France’s PSA Groupe in January 2021. Tavares’ “Dare Forward 2030” plan aims to increase profits and double revenue by 2030, leading to significant headcount reductions at the company. Despite facing criticism for these cost-cutting efforts, Tavares remains firm in his belief that they are necessary for the company’s future success.
The escalating conflict between Fain and Tavares has raised concerns about the future of Stellantis and its relationship with the United Auto Workers. With accusations of price gouging, contract violations, and quality issues, both sides will need to find a way to address these issues and move forward in a constructive manner. The ongoing tension between the CEO and the union leader could have lasting implications for the company’s reputation, workforce morale, and overall business performance. It remains to be seen how Stellantis and the UAW will navigate these challenges and work towards a resolution that benefits both parties.