Stellantis (STLA) calls for 'focus on reality' in UAW talks

Chrysler's parent company, Stellantis (NYSE: STLA), firmly rejected the demands presented by the United Auto Workers (UAW) union on Friday, emphasizing the necessity for "a focus on reality from everyone involved" during negotiations.

Stellantis NA COO, Mark Stewart, conveyed in a letter to the workforce that the automaker remains "committed to working with the UAW to reach an agreement based on economic realism." Stewart further expressed that conceding to the existing UAW demands might “endanger our ability to make decisions in the future that provide job security for our employees.” Adding This is a losing proposition for all of us."

In recent days, UAW President Shawn Fain criticized the Stellantis proposals as "trash" and symbolically discarded a copy of them into a waste basket during a live streamed speech, highlighting Stellantis' pursuit of several concessions.

The UAW is advocating for salary increases exceeding 40% over a span of four years, substantial additional time off, and the reinstatement of defined-benefit pensions, which were previously eliminated for newer employees.

"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."

The current four-year agreements with Stellantis, General Motors (NYSE: GM), and Ford Motor (NYSE: F) are set to expire on September 14th.

Shares of STLA, GM, and F are down 2.08%, 1.20%, and 0.49%, respectively in mid-day trading on Friday.

By Michael Elkins | [email protected]

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