Automaker Stellantis NV STLA on Monday announced its plan to temporarily lay off around 2,250 employees at its Mirafiori facility in Turin, Italy, and terminate hundreds in the U.S.
What Happened: The layoffs in Italy— a result of weak demand — are set to begin on Feb. 12 and continue till March 3, Reuters reported. The decision will impact 1,250 employees engaged in the production of the electric Fiat 500, and another 1,000 workers involved in the manufacturing of Maserati models.
Separately, the Detroit News reported on Monday that the company will be terminating 539 supplemental employees across its U.S. manufacturing units.
The affected workers are a lower-paid class of employees known as temporary employees at rival auto companies and will not be eligible for supplemental unemployment benefits.
Why It Matters: In the U.S., the United Auto Workers ratified a deal with Stellantis in November which called for an 11% immediate pay hike upon ratification, and a hike in wages for temporary workers, among other improvements for workers.
Since then, the automaker has announced layoffs at both the Mack Assembly Plant and Toledo assembly plant.
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