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Citing Glut of Stock Buybacks, US Lawmakers Demand Stellantis Uphold Contract With UAW
"We believe that if Stellantis can afford to spend over $8 billion this year on stock buybacks and dividends, it can live up to the contractual commitments it made to the UAW."
Oct 24, 2024
In what the United Auto Workers hailed as "a powerful show of solidarity," scores of U.S. lawmakers on Thursday sent letters to "Big Three" automaker Stellantis and its CEO, Carlos Tavares, urging them to honor their contractual obligation to their employees, protect American jobs, and stop making excuses amid record profits and multibillion-dollar stock buybacks and dividends.
"We are writing to express our growing concerns about the failure of Stellantis, under your leadership, to honor the commitments it made to the United Auto Workers (UAW) in last year's collective bargaining agreement," says one letter led by Sens. Bernie Sanders (I-Vt.), Gary Peters (D-Mich.), Dick Durbin (D-Ill.), Debbie Stabenow (D-Mich.), and Tammy Duckworth (D-Ill.) and signed by 18 of their Democratic colleagues.
"We urge Stellantis not to renege on the promises it made to American autoworkers and to provide details on the timelines for these investments," the senators wrote.
Meanwhile, 56 members of the Congressional Labor Caucus led by Reps. Debbie Dingell (D-Mich.), Mark Pocan (D-Wis.), and Donald Norcross (D-N.J.) sent a separate letter, this one to Stellantis' board of directors, calling on Chrysler's parent company to "follow through on promises to workers to invest in its domestic workforce."
"Given the significant governmental financial support for Stellantis over the years, we have become alarmed by a steady stream of reports indicating your plans to lay off auto workers and move production out of the United States, and that you are failing to honor contractual commitments that Stellantis made as part of the 2023 national collective bargaining agreement," the letter states.
Last November, UAW workers at the Big Three—GM, Ford, and Stellantis—ended a six-week "stand-up strike" and signed new contracts with better pay, benefits, and working conditions. Stellantis committed to making nearly $19 billion in new domestic investments, reopening its "indefinitely idled" Belvidere, Illinois plant, continue manufacturing the Dodge Durango SUV in Detroit through 2025, and build the next-generation Durango in the city starting in 2026, among other promises.
However, according to the senators' letter:
Stellantis is now delaying planned investments to reopen and expand the Belvidere assembly plant, leaving behind thousands of American workers who built the company into the auto giant it is today. We are also concerned with reporting that Stellantis is planning to move production of the next-generation Dodge Durango out of the United States, after previously announcing layoffs that threaten the economic security and well-being of thousands of autoworkers.
Moreover, Stellantis has stated publicly that it plans to source 80% of supply from "low-cost countries" like Mexico. By your own admission, Stellantis' growth plan hinges on shifting "industrial production into cost-competitive countries" like Mexico, where workers are making substandard wages. These actions violate the obligations Stellantis made to the UAW.
"Taxpayers are currently funding consumer incentives for several Stellantis vehicles and Stellantis is slated to receive $585 million under the Domestic Manufacturing Conversion Grant Program," the House lawmakers noted in their letter. "Under this program, Stellantis is on track to pocket $335 million to reopen the Belvidere Assembly plant in Belvidere, Illinois. As stewards of taxpayer funding, we have a responsibility to ensure these investments benefit the public interest."
"We hope it is clear to you that the American people will not tolerate taxpayer subsidies for a company that is cutting production and slashing jobs—all the while it increases executive compensation, dividends to shareholders, and stock buybacks," the letter adds.
The senators noted that "this year, Stellantis has spent over $8 billion on stock buybacks and dividends to benefit its wealthy executives and stockholders, and that "last year, while blue-collar auto workers in Belvidere were being laid off indefinitely, you were able to receive a 56% pay raise boosting your total compensation to $39.5 million, which made you the highest paid executive among traditional auto companies."
"During the first six months of this year, Stellantis has generated over $6 billion in profits, making it one of the most profitable auto companies in the world," the letter adds. "We believe that if Stellantis can afford to spend over $8 billion this year on stock buybacks and dividends, it can live up to the contractual commitments it made to the UAW."
Last week, the UAW published a powerful video in which union president Shawn Fain makes some of the same demands that are in the lawmakers' letters.
"For years, this company has picked us off, plant by plant, and our leadership lacked the will and the means to fight back," Fain said in the video. "Those days are over."
Fain continued:
Stellantis management has launched a campaign of intimidation and harassment against our members, our local unions, and the International UAW to try to get us to back down from the fight to save our jobs.
I have bad news for Stellantis: We're not going anywhere.
Their corporate lawyers are claiming that our fight to keep jobs in Belvedere, Detroit, and America is based on what they call "sham grievances."
But here's the real sham: Over the past nine weeks, Stellantis has spent over a billion dollars on stock buybacks, all while saying they can't afford to keep their commitments to their own employees. In fact, Stellantis has spent $3 billion on stock buybacks this year alone.
The real sham is this campaign of intimidation and interference in our union's business. Stellantis managers are calling members, threatening their jobs. They're emailing our local presidents threatening lawsuits. This is what happens when a CEO is cornered and isolated. His dealers in America and Europe are turning against him. His suppliers and shareholders are suing him, and he's pushing our customers away.
And the sham is that he will walk away with a golden parachute of millions and millions of dollars, while American autoworkers are left holding the bag.
"The sham took place this week when he was asked about stepping down or being replaced, Carlos Tavares said, and I quote, 'I signed a contract,'" Fain said. "Well, Carlos, the workers at Stellantis signed a contract too, and it's time for you to honor it."
Calling on UAW members to sign a strike authorization pledge over Stellantis' broken promises, Fain vowed that "we will once again save this company from mismanagement, from corporate greed, and from killing tens of thousands of good jobs."
"But only if we stick together," he stressed. "So, are you in? If you are, sign your strike authorization pledge today. And you can do that by going to shitcancarlos.com."
"Let the company know where you stand," Fain added. "And together, let's tell Stellantis: The days of plant closures are over, and Carlos Tavares needs to go."
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Democrats Renew Effort to End Private Equity Looting
"Union-busting, pollution, and bankruptcy aren't side effects of the private equity model: They are the model," said one campaigner backing the bill. "It's a smash-and-grab, plain and simple."
Oct 10, 2024
Less than a month away from the U.S. general election, over a dozen congressional Democrats on Thursday renewed their fight to "fundamentally reform the private equity industry" with a bill that Rep. Mark Pocan said "will finally hold these predatory firms accountable and protect workers from being plundered by corporate greed."
"It's long past time for billionaires and big corporations to stop gambling with hardworking Americans' and their communities' assets in service of corporate greed," declared Pocan (D-Wis.), who is leading the Stop Wall Street Looting Act with Congressional Progressive Caucus Chair Pramila Jayapal (D-Wash.) and Sen. Elizabeth Warren (D-Mass.).
"In Wisconsin, we've seen what happens when private equity firms like Sun Capital raid companies for their wealth and leave workers and communities to pick up the pieces," he noted. "When Sun Capital took over Shopko—a Wisconsin-based retail chain that had stood strong for more than 50 years—they drained it dry, buried it in debt, pushed it into bankruptcy, and abandoned roughly 14,000 workers."
"Private equity takeovers are legal looting that make a handful of Wall Street executives very rich while costing thousands of people their jobs, putting valuable companies out of business, and in the case of healthcare, is literally a matter of life and death."
Warren's state is also dealing with fallout from the industry. As The Boston Globereported Thursday, the legislation is "designed to rein in the growing power of private equity firms and limit the sort of leveraged buyout deals that led to the crisis at Steward Health Care, whose bankruptcy continues to roil communities in Massachusetts and seven other states."
The bill "was reintroduced in part as a response to the unfolding crisis at Steward, which before its bankruptcy was the nation's largest private for-profit hospital system," the newspaper noted. It follows the Senate's unanimous approval of a resolution to hold CEO Dr. Ralph de la Torre in criminal contempt of Congress for his refusal to comply with a subpoena to testify before a committee. Shortly after the vote—the first of its kind since 1971—he resigned.
"Private equity takeovers are legal looting that make a handful of Wall Street executives very rich while costing thousands of people their jobs, putting valuable companies out of business, and in the case of healthcare, is literally a matter of life and death," Warren, a former bankruptcy law professor, said Thursday. "Our bill is designed to close loopholes and end incentives for private equity pillaging—and it will make sure what happened at Steward never happens again."
As a fact sheet from the sponsors details, the bill would make private equity firms responsible for liabilities including debt, legal judgments, and pension-related obligations; limit how much money they can extract from companies; close a loophole they have used to conceal assets from bankruptcy courts; implement various protections for workers and customers; increase transparency; impose guardrails for receiving public funds; and drive real estate investment trusts out of healthcare.
"From healthcare to housing, millions of Americans are seeing private equity take over companies with the promise of improving services, only to strip them for parts and hurt both workers and working families," said Jayapal. "It's time for Congress to take action to protect Americans from the dangers of private equity and corporate greed, and that's exactly what our Stop Wall Street Looting Act will do."
The legislation is backed by Reps. Raúl Grijalva (D-Ariz.), Rick Larsen (D-Wash.), Barbara Lee (D-Calif.), Delia Ramirez (D-Ill.), Jan Schakowsky (D-Ill.), Alexandria Ocasio-Cortez (D-N.Y.), and Eleanor Holmes Norton (D-D.C.), along with Sens. Tammy Baldwin (D-Wis.), Jeff Merkley (D-Ore.), Bernie Sanders (I-Vt.), Tina Smith (D-Minn.), and Ed Markey (D-Mass.).
The bill is also endorsed by dozens of groups including the American Federation of Teachers, Americans for Financial Reform, Economic Policy Institute, Indivisible, National Employment Law Project, National Nurses United, Public Citizen, Service Employees International Union, Student Borrower Protection Center, Take on Wall Street, United for Respect, and Working Families Party.
"Union-busting, pollution, and bankruptcy aren't side effects of the private equity model: They are the model," said Porter McConnell of Take on Wall Street. "It's a smash-and-grab, plain and simple. That's why we are so pleased to see comprehensive legislation like the Stop Wall Street Looting Act introduced in Congress today. We created the loopholes in the law that allowed the private equity industry to thrive, and we can end them."
United for Respect co-executive directors Bianca Agustin and Terrysa Guerra stressed that "Wall Street private equity firms have proven themselves to be a parasite on workers, our economy, and American retailers by gutting companies for profit and driving mass layoffs. Holding billionaire profiteers accountable for the damage they do to our working families and communities is imperative to addressing growing economic inequality."
"The Stop Wall Street Looting Act will help close loopholes in our laws that for too long have allowed private equity to pillage companies and amass huge profits while workers lose their jobs and are left with nothing," they added. "United for Respect is proud to support this bill—and we need all legislators to join us in protecting workers and putting Wall Street on the hook for the havoc they reap."
While the bill is unlikely to go anywhere in the currently divided Congress, it's a clear statement from the sponsors where they stand, as early voting gets underway to determine the future of the Senate and House of Representatives as well as the next occupant of the White House—Democratic Vice President Kamala Harris or former Republican President Donald Trump.
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House Democrats Say 'Impunity' for Israel Violates US Human Rights Law
"Numerous credible reports of gross violations of human rights by Israeli security forces have rightly placed U.S. enforcement of the Leahy Law in sharp focus."
Oct 04, 2024
As the death tolls from the U.S.-backed Israeli assaults on Gaza and Lebanon neared 42,000 and 2,000 respectively, a group of House Democrats this week urged the Biden administration to hold Israel accountable to human rights standards established under existing domestic law.
In a letter to Secretary of State Antony Blinken and Defense Secretary Lloyd Austin dated September 30 but first published Friday by HuffPost, the Democratic lawmakers—Reps. Jim McGovern (Mass.), Barbara Lee (Calif.), Betty McCollum (Minn.), Mark Pocan (Wis.), and Joaquin Castro (Texas)—expressed their "deep alarm regarding the lack of U.S. enforcement of the Leahy Law as it pertains to U.S. assistance to Israel."
Named after its author, former Sen. Patrick Leahy (D-Vt.), the Leahy Laws were approved in two rounds in the late 1990s. The legislation built on the Foreign Assitance Act of 1961, which prohibits U.S. military aid to foreign security forces that commit gross human rights violations.
"We strongly urge you to apply the law as written and act swiftly to bar any Israeli military unit that faces credible accusations of committing a gross violation of human rights from receiving U.S. assistance or training," the lawmakers wrote in their letter.
"As longtime friends and allies of Israel, we have supported, and continue to support, security assistance to Israel for the purposes of legitimate self-defense," the letter states. "Israel continues to face serious threats from Hamas, Hezbollah, and other terrorist groups. As it defends against these threats, Israel must ensure it is using U.S. security assistance and funding in compliance with U.S. law—whether in the West Bank, Gaza, Lebanon, or elsewhere."
According to the letter:Numerous credible reports of gross violations of human rights by Israeli security forces have rightly placed U.S. enforcement of the Leahy Law in sharp focus. Israeli and international human rights organizations have released credible reports of Israeli security units subjecting Palestinians in Israeli detention facilities to torture, ill-treatment, prolonged detetion without charges or trial, and rape under color of law. Extensive investigations by reputable media outlets have also documented multiple instances of civilians carrying white flags being shot and killed by the Israel Defense Forces (IDF) in Gaza.
The letter comes ahead of the anniversary of the Hamas-led October 7 attack on Israel and that country's retaliation, which has left more than 148,000 Palestinians in Gaza dead, maimed, or missing and millions more forcibly displaced, starved, and sickened.
Israel is currently on trial for genocide at the International Court of Justice, and International Criminal Court Prosecutor Karim Khan is seeking arrest warrants for Israeli Prime Minister Benjamin Netanyahu and Defense Minister Yoav Gallant, as well as for leaders of Hamas.
In recent weeks, Israel has also ramped up airstrikes and launched a ground invasion in Lebanon, from which Hezbollah has been launching aerial attacks on Israel since shortly after October 7. Thousands of Lebanese have been killed or wounded.
All of this is enabled by tens of billions of dollars worth of nearly unconditional U.S. military aid and diplomatic cover including multiple vetoes of United Nations Security Council cease-fire resolutions. While the Biden administration delayed shipment of a limited number of heavy bombs of a type that Israel was using to massacre civilians in densely populated areas, those shipments soon resumed, even as the Gaza death toll soared ever higher.
"The failure of the United States to consistently apply our own laws has contributed to a culture of impunity in the IDF that actively endangers the lives of U.S. citizens," the lawmakers asserted before highlighting "gross violation[s] of human rights" perpetrated by Israeli forces against several Americans.
These include Omar Assad, an elderly former Milwaukee grocer who in January 2023 was dragged from his vehicle, blindfolded, gagged, and handcuffed before falling silent while being detained in Jiljilya; renowned Al Jazeera correspondent Shireen Abu Akleh, who multiple probes found was deliberately shot dead while covering an IDF raid in the West Bank in May 2022; and, most recently, 26-year-old International Solidarity Movement (ISM) activist Ayşenur Ezgi Eygi, who was shot in the head during a September 6 demonstration against Israel's illegal West Bank settler colonies.
Israeli impunity for killing Americans far predates the examples listed in the letter. For example, in 2003, ISM activist Rachel Corrie was crushed to death by a U.S.-supplied Israeli military bulldozer while trying to stop the demolition of Palestinian homes in the West Bank. In 1967 Israeli warplanes and warships repeatedly attacked the spy ship USS Liberty in the Mediterranean Sea, killing 34 sailors and others and wounding 171 more in what numerous senior U.S. officials including the then-secretary of state and CIA director said was a deliberate act.
At least one American has also been killed by Israeli bombing in Lebanon this week. Hajj Kamel Ahmad Jawad, 56, of Dearborn, Michigan was killed in an airstrike Tuesday while in Nabatieth in southern Lebanon caring for his sick mother and volunteering to help elderly, disabled, and injured patients at a local hospital.
"When it functions properly, the Leahy Law serves two crucial purposes: It prevents U.S. complicity in gross violations of human rights, and it deters violations by incentivizing foreign governments to hold perpetrators accountable," the Democratic lawmakers wrote in their letter. "However, the Leahy Law can only serve these purposes when it is enforced."
Indeed, successive U.S. administrations have supported some of the world's worst human rights violators—including the perpetrators of genocidal mass murder in Indonesia, Paraguay, Cambodia, Guatemala, Bangladesh, East Timor, Kurdistan, and Gaza—since the passage of the Foreign Assistance Act and Leahy Laws.
"We strongly urge you to uphold the rule of law, bar assistance to any unit that is credibly implicated in a gross violation of human rights, and ensure perpetrators of crimes against American citizens face accountability and justice," the letter's signers concluded.
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