Stellantis unveils 'retirement incentive programme'

Employees reportedly get two weeks to decide before layoff notices are issued

Stellantis unveils 'retirement incentive programme'

Automaker Stellantis has announced a "retirement incentive programme" for employees based at two of its assembly plants in Windsor and Brampton, according to reports, as the company reduces its workforce in the coming months.

No information was unveiled to the public regarding the initiative, but AM800 News reported that eligible employees have been given two weeks to decide on whether they will take up the offer before the layoff notices are issued. The automaker, formerly known as the Fiat Chrysler, has not revealed the total number of layoffs, but it said its "workforce reduction" will take place over the next several months.

They assured, however, that the company plans to "make every effort to place laid off hourly employees in open full-time positions as they become available based on seniority."

According to a new release cited by CBC, the change in its workforce came as the company transitions to more "sustainable" practices.

"As we transition to a sustainable, mobility tech company, we continue to review our operations for efficiencies," said the release as quoted by CBC.

Read more: Stellantis to transition to single shifts

Just this May, the company announced that it is investing $3.6 billion in its Canadian operations to "accelerate electrification plans" and "secure the future of Windsor and Brampton plants."

"These investments reaffirm our long-term commitment to Canada and represent an important step as we move toward zero-emission vehicles that deliver on our customers' desire for innovative, clean, safe and affordable mobility," said Stellantis North America Chief Operating Officer Mark Stewart.

In this announcement, Stellantis vowed to add more than 650 new engineering jobs at the at the Windsor-based Automotive Research and Development Centre to support electrification.  

In addition, the assembly plants in Windsor and Brampton were also expected to return to three shift operations to support the demand for new products, according to the automaker, but it has yet to reveal when it will be implemented.

"We're grateful to both the federal and provincial governments for their shared vision to create a sustainable future. And, to Unifor and our workforce for their support in helping ensure the viability of our Canadian operations for the long-term," said Stewart.

Unifor, however, has yet to comment on the recently announced "retirement incentive programme" from Stellantis.

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