Auto giant Stellantis is offering voluntary severance packages of up to DKK 500,000 to hourly employees in the US in an attempt to increase efficiency.
Stellantis is now offering selected hourly-paid employees a voluntary severance package. The offer could provide up to approximately 500,000 Danish kroner. The initiative is part of the car group's efforts to improve efficiency.
The scheme targets employees at more than 20 of the group's facilities, including assembly plants and parts distribution centers in the Midwest of the United States.
To be eligible, employees must have been employed by the automaker for at least one year. However, it takes a long time to earn the maximum payout.
The details are not fully disclosed, but employees with less than 15 years of experience can receive up to 346,000 kroner.
A special incentive of DKK 346,000 is also announced. This applies to employees hired in November 2007 who are entitled to a full pension.
Stellantis' severance terms
The amount of up to 500,000 kroner is significant. However, it is surpassed by the severance payments in the millions that Mercedes allegedly offers.
Still, it's a significant amount for many, especially those who were already considering retirement.
The employees' situations are different. The deadline to accept the offer is May 8th.
Not everyone is convinced it's the right move, though. One employee told local Detroit television station WDIV : "It's not enough money."
The employee elaborated that it would be "terribly difficult to find a job with the benefits, the pay, and the union representation they have here."
Reactions and background
It is not yet known how many employees will take up the offer. Stellantis maintains that the layoffs are intended to improve efficiency and competitiveness.
The union disagrees with that interpretation. They point to former CEO Carlos Tavares.
The union believes that his "gross mismanagement" has created a crisis in the company.
Stellantis is a major player in the car market with many well-known brands under its umbrella. At Boosted.dk you can read much more about some of the brands that belong to Stellantis. We often write about news and tests of cars from, for example, Jeep, Alfa Romeo and Dodge. Find the latest articles about the exciting models on our website.
