TOLEDO, Ohio — Stellantis, the parent company of Jeep, has announced plans to lay off up to 1,225 workers from the Toledo Assembly Complex.
The company's announcement comes about a month after the automaker reached a new contract with United Auto Workers members that most analysts hailed as a victory for workers.
As part of the new contract, the use of so-called temporary workers will change. At the Toledo plant, Stellantis said in the Thursday announcement that it will transition from an "alternative work schedule" to a traditional two-shift operation. This will lead to the loss of jobs, according to the company.
Layoffs could include up to 1,225 employees, company spokesperson Jodi Tinson said Thursday.
According to a Worker Adjustment and Retraining Notification notice from Stellantis, 1,094 of the layoffs are supplemental employees and the remaining 131 are production operators/team members.
Also affected is the Mack Assembly Complex in Detroit, which will transition from a three-shift operation to a two-shift operation. Layoffs also are expected there, according to Stellantis.
"Because both of these changes will result in job losses, effective as early as Feb. 5, 2024, the Company will issue WARN notices on Dec. 7, 2023, to the respective state and local governments as well as the UAW," a statement from Stellantis said Thursday evening. "Although WARN may not ultimately be applicable to these job losses, out of an abundance of caution, we are taking this action to give employees notice even if not legally required."
"It's a scary time when you hear something like that," said UAW Local 12 President Bruce Baumhower. "They're going to lay off 1100 people and it's our job to make sure it doesn't happen."
When asked by WTOL 11 if these layoffs are 100% going to happen, Baumhower said, "I'm saying no. I'm saying we're going to put pressure on the company. We've talked to them about it, even today, and said, 'We want you to offer layoffs to senior people who might enjoy taking the summer off and let these new hires begin their careers as full-time employees.' That's our position and we're not moving from it."
Toledo Mayor Wade Kapszukiewicz responded to the layoff news with a statement:
"Through ongoing conversations with Stellantis and UAW, we anticipated there would be changes at the Jeep plant following the recent contract negotiations. Jeep is and will continue to be a top employer and essential to Toledo’s economy. As we learn more about this developing situation, we will work closely with partners including Lucas County and Ohio Means Jobs to provide assistance for affected workers. We continue to be optimistic about the future of the Jeep plant and other economic development projects in the pipeline.”
U.S. Rep. Marcy Kaptur (D-Toledo) also provided a statement in response to the layoff news:
“The harsh news about potential layoffs of 1,000+ at the Jeep Stellantis plant in Toledo was deeply troubling. I am pleased that the UAW has been working for its members to derail the harsh actions proposed by the company. Hard-fought protections gained at the bargaining table will hold the plant over while efforts to meet emission goals continue. Together, the company, the UAW, and all levels of government made great efforts to keep these jobs in the Great Lakes Heartland where the skills exist, the supply chain exists, and where the automotive heart of our nation strongly beats.”
"This is devastating news for autoworkers at the Toledo Assembly Complex and their families right before the holidays — and I am deeply frustrated that Stellantis made this decision at a time when the company is making record profits," U.S. Sen. Sherrod Brown, D-Ohio, told WTOL 11 on Thursday. "I am pushing to get more details from Stellantis and will keep fighting to ensure that any laid off worker gets the support and benefits they need."
The new contract between Stellantis and the UAW includes a 25% pay raise over the life of the contract for both hourly and salaried employees. It reinstates the pre-2009 Cost of Living Adjustments, three-year wage progression and lands top pay over $42 an hour while effectively ending long-term temp jobs and wage tiers. Additionally, members got a $5,000 bonus.
The contract came after a contentious strike against Detroit's Big 3 automakers. Toledo's Jeep workers were the first to be called to the picket line by UAW leadership and they remained on strike for six weeks before a deal was struck and they returned to the assembly line.
There are about 5,500 unionized workers at the Toledo plant. While Stellantis workers overall voted to approve the contract proposal last month, Toledo's Local 12, which represents the Jeep Assembly Complex, rejected the deal by a vote of about 55% to 45%.
The new contract agreements were widely seen as a victory for the UAW. The companies agreed to dramatically raise pay for top-scale assembly plant workers, with increases and cost-of-living adjustments that would translate into 33% wage gains. Top assembly plant workers are to receive immediate 11% raises and will earn roughly $42 an hour when the contracts expire in April of 2028.
Under the agreements, the automakers also ended many of the multiple tiers of wages they had used to pay different workers. They also agreed in principle to bring new electric-vehicle battery plants into the national union contract. This provision will give the UAW an opportunity to unionize the EV battery plants, which will represent a rising share of industry jobs in the years ahead.
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