Jeep maker Stellantis said it will offer buyouts for thousands of its workers, weeks after the company reached a tentative contract agreement with the United Auto Workers.
The automaker confirmed that the buyouts are available to nonunion staff members who have five years or more at the company; workers with more time at the company would earn more from a buyout. The buyouts will be available to around 6,400 of Stellantis’ 12,700 nonunion workers.
“As the U.S. automotive industry continues to face challenging market conditions, Stellantis is taking the necessary structural actions to protect our operations and the company,” the company said in a statement.
For workers with 10 years or less of experience, the buyouts will constitute three months of normal pay, while those with 20 or more years of experience will receive an entire year’s salary.
The buyouts come just weeks after the company signed a tentative agreement with the UAW, delivering massive wage and benefits increases. Unionized Stellantis employees are still voting on the pact, and it’s expected to pass.
The deal was preceded by an intense worker strike, which saw Stellantis plants closed and revenue streams tightened. While the company did not express the direct reason for the buyouts, two explanations could be the impact of the strike and the impending increase in labor costs as a result of the UAW contract.