10:21 am, December 6, 2024
Trade union bosses have called for Stellantis to reverse its decision to close its Luton plant, following the departure of CEO Carlos Tavares.
The carmaker confirmed the immediate departure of its long-standing boss earlier this week, just days after announcing plans to end production in Luton from next year.
His removal was said to be down to a disagreement over general strategy, with Tavares overseeing a huge cost-cutting exercise in recent years.
Now, with the Portuguese businessman out of the picture, union leaders want fresh talks over the plans, which could cost as many as 1,100 jobs.
Trade union, Unite, described the decision to close the Luton plant as ‘one final example of Tavares’ failed strategy’ and said the move ‘must be halted’.
The body also called on Stellantis to ‘turn the page on years of aggressive anti-worker strategies’, following the 66-year-old’s departure.
It will now put counter proposals to Stellantis in the hope of preventing the closure of the Bedfordshire factory.
Sharon Graham, Unite general secretary, said: ‘The exit of CEO Carlos Tavares is an opportunity for Stellantis to turn the page on years of aggressive anti-worker strategies which now threaten to close a profitable plant which is ready to produce thousands of electric vans next year.
‘Unite shop stewards will table counter proposals to management this week, but workers cannot negotiate with a gun to their heads.
‘Stellantis must withdraw the HR1 redundancy notices immediately so workers, management and government can negotiate the future of this vital electric vehicle factory.’
In response to Unite’s statement, Stellantis said work is already ‘well underway’ to appointing a new CEO.
The carmaker added that it remains committed to ‘ensuring the continuity of the ongoing projects that have been already communicated’.
A spokesman told Car Dealer: ‘The process to appoint the new permanent Chief Executive Officer is well under way, managed by a Special Committee of the Board, and will be concluded within the first half of 2025.
‘While the appointment of the new CEO is concluded, a new organisation has been implemented with immediate effect.
‘The Interim Executive Committee (IEC) are responsible for the direction and oversight of the company on behalf of the board of directors. The IEC is chaired by John Elkann
‘The committee will also ensure the continuity of the ongoing projects that have been already communicated, under the guidance of the CEO.’
Outlining its future plans last month, Stellantis said it would close it’s Vauxhall plant in Luton from next April and instead invest £50m into its Ellesmere Port factory where it builds Vauxhall, Peugeot and Citroen electric vans.
Bosses said they hoped to transfer ‘hundreds’ of jobs from Luton to Ellesmere Port as part of the transition and Stellantis is currently in consultation with unions and employees.
In response to the proposals, a Government spokesman said: ‘While it’s encouraging to see Stellantis investing in the future of its Ellesmere Port plant, we know this will be a concerning time for the families of employees at Luton who may be affected.
‘We have a longstanding partnership with Stellantis and we will continue to work closely with them, as well as trade unions and local partners on the next steps of their proposals.
‘The Government is also backing the wider industry with over £300m to drive uptake of zero emission vehicles and £2bn to support the transition of domestic manufacturing.’
