Automotive News Europe — 2023-10-13
Automotive Industry
Stellantis is offering a new stock investment plan to its French and Italian employees to help them with cost-of-living pressures and try to incentivize performance, two sources close to the company told Reuters.
In France, 42,000 employees will be offered the chance to become shareholders under preferential conditions: a 20% discount on the value of the shares and a matching contribution from the group of up to 100% of the sum invested, up to € 1,000 ($1,055), the sources said.
The terms of the Italian plan were not immediately available.
The move comes amid pressure on companies to help employees with a squeeze on their finances from rising interest rates and still-high inflation.
Workers in the U.S. car manufacturing heartland of Detroit have staged a month-long strike at the Detroit Three automakers, which include Stellantis.
France's CFE-CGC union welcomed the share plan but said it must not "allow us to forget the legitimate expectations of employees for a substantial increase in base salaries."
Renault earlier this year gave workers a 7.5% pay rise, the biggest increase since 1992, while Stellantis has already offered pay increases and a one-off bonus.
Wage inflation remains a headache for policymakers. Rising wages in the euro zone are underpinning inflation in the bloc but wage growth should moderate in the coming months, the European Central Bank's chief economist said this month.
Only 1.4% of Stellantis' capital currently belongs to its employees worldwide.