A Big Pay Day For Auto Workers As Ford, Chrysler Share The Wealth – Forbes
Nearly 100,000 hourly workers at Ford Motor and Fiat Chrysler Automobiles will be pocketing thousands of dollars in profit-sharing bonuses next month, a reward for helping the companies achieve strong operating results in North America.
At Ford, which recorded a $9 billion profit in its home market last year, more than 56,000 unionized auto workers will receive profit-sharing checks averaging $9,000. FCA will pay $5,000 extra to some 40,000 unionized workers after posting a $5.1 billion profit in North America.
Profit-sharing is a benefit first negotiated by the United Auto Workers union in 1982, and the formula for calculating payouts was simplified in 2011, then revised again during 2015 contract talks. This is the first payout under the new contract. The formula is based on earnings before interest and taxes in the North American region.
Ford-UAW Vice President Jimmy Settles called the profit-sharing payout “an important indicator that Ford Motor Co. is a healthy, financially secure company which translates to job security for our members.”
“Profit sharing is not a benevolent payout by the company, but something our members deserve and demand,” he said. “Both job security and financial gains for our membership have always been at the top of my priority list and today’s announcement solidifies our efforts.”
Norwood Jewell, who heads up the union’s FCA department, added that some employees who worked extra hours might take home higher profit-sharing checks. “UAW members at FCA US are proud of the quality Chrysler, Jeep and RAM products they produce, and through collectively bargained profit-sharing, the hard work and success of our members’ work is rewarded.”
General Motors workers will find out how much they’ll receive in profit-sharing when the automaker reports its 2016 financial results on Feb. 7.
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