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"Stellantis
proposals are a slap in the face," Fain said during an online
chat, disclosing the company is proposing cuts to health-care
coverage, fewer vacation days for new hires, employer cuts to
401(k) contributions, and lifting a cap on the number of
temporary employees. "Management has chosen to spit in our
faces."
During the chat Fain tossed a copy of the Stellantis proposal in
a waste basket. "That's where it belongs - in the trash -
because that's what it is," he said.
The July 27 company document seen by Reuters makes many
proposals aimed at reducing absenteeism, which the automaker
said cost it more than 16,000 vehicles of lost production, or
$217 million in lost revenue.
Stellantis also seeks to cut pension, health-care and other
costs, saying that amid government electric vehicle rules, it
"is imperative we find ways to reduce the overall fixed cost
structure of our business."
Stellantis said the cumulative increase in employee health-care
costs over the next four years is expected to be $613 million.
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.
Fain cited an Aug. 1 statement Stellantis made to Reuters that
the automaker is "not seeking a concessionary agreement."
Stellantis did not comment.
The UAW is seeking 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.
Stellantis' proposal said it wants to "minimize pension costs,"
which are approximately $1 billion annually.
The current four-year contracts with Stellantis, General Motors
and Ford Motor expire on Sept. 14. Fain warned Tuesday: "The
clock is ticking - time to get down to business."
Two people briefed on the matter told Reuters that automakers
have estimated the UAW's contract demands could raise the
current mid-$60-per-hour labor rate to more than $150 per hour.
The UAW is also seeking to make all temporary workers at U.S.
automakers permanent, add a substantial increase in paid time
off, and restore retiree health-care benefits and cost-of-living
adjustments. The union also wants new limits on temporary
workers.
(Reporting by David ShepardsonEditing by Bernadette Baum,
Marguerita Choy and Leslie Adler)
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