Almost 2,000 supplemental contract employees at Fiat Chrysler Automobiles are out of work across North America as the automaker pauses some of its development projects because of financial burdens caused by the coronavirus pandemic.
The decision comes as the automaker halts production at its manufacturing plants on the continent and in other countries. Meanwhile, a stay-at-home order from Gov. Gretchen Whitmer joins other states in limiting business to “critical infrastructure workers,” which does not include sales operations at dealerships.
“In light of the challenges created by the COVID-19 situation, and the various ‘stay at home’ orders from multiple states, a number of development projects within FCA have been temporarily put on hold,” the automaker said in a statement.
“As a result of this, subcontract companies who were providing external support to a number of these projects have been asked to temporarily suspend their activities as we reprioritize certain initiatives and projects.”
The company added it will continue to monitor the situation in hopes of returning to normal as soon as possible. It provides work to almost 3,000 of these supplemental workers in the United States, Canada and Mexico, who are not union-represented. The automaker did not provide details on which projects it is suspending.
Fiat Chrysler last week agreed to start sending its manufacturing workforce home through the end of March following an outcry from the rank-and-file and pressure from labor unions. United Auto Workers President Rory Gamble on Tuesday said the automaker intends to extend the downtime until the end of Whitmer’s order on April 13 following the death of employees in Sterling Heights and Kokomo, Indiana, who tested positive for the virus. Fiat Chrysler has not commented on that possibility.
On Friday, the company halted construction for two weeks at its new assembly plant on Detroit’s east side and at its Warren Truck Plant, which is getting a new paint shop and will be retooled. The company on Sunday also sent home UAW-represented salaried workers at its Auburn Hills technology center after a non-union worker there who tested positive died, The Detroit News previously reported.
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