The layoffs, first announced on June 14, will impact employees at the Stamping Plant in Sterling Heights. According to a letter sent from the UAW, the chapter was told by management it wants to begin "an indefinite lay-off (from the bottom up) starting as early as Monday, June 20, 2022."
A lot of questions remain regarding who will be impacted or when.
More clarity did come from the chapter in a letter posted on Friday which said openings at other Stellantis plants would be filled by employees let go from the Sterling Heights faciliyu.
"All the indefinitely laid off members that have volunteered for work opportunity has been made job offers at other plants," read the letter. That includes openings at Mopar, a Stellantis supplier, Toledo Assembly, and Kokomo in Indiana.
All three facilities are hiring members from the Detroit Labor Market. The shifting of manpower at Stellantis is part of the union's 2019 agreement with the Stellantis.
The layoffs announced are a symptom of a larger issue for automakers, experts say.
"With auto volumes continuing to run at the rate they're running at, you just don't need as many people because you're not producing as many vehicles," said John Stoll, an expert on automobiles. "We're going to be in a situation where supply of automobiles is constrained not just for one year, but for probably for 2024."
The ripple effects from the pandemic's early shutdowns and the supply chain issues that have continued to since then have led to chip shortages, skyrocketing costs for used and new cars, as well as gas.