Stellantis workers will get a bigger share of the profits with an improved formula

0

Stellantis NV will pay out pre-tax profit-sharing checks of $ 8,010, a 10% increase from last year after the United Auto Workers negotiated a richer formula during contract negotiations in 2019.

The transatlantic automaker, resulting from the merger between Fiat Chrysler Automobiles NV and its French rival Groupe PSA, announced a profit share on Wednesday morning as part of the 2020 annual results of the two companies, which merged in January. Profit sharing for American workers is based on FCA’s North American margin. It fell to 8.9% from 9.1% in 2019, as the COVID-19 pandemic hampered production and demand.

READ MORE: Fiat Chrysler made $ 29 million in profit in final year before Stellantis merger

But the union negotiated a new profit-sharing formula in 2019 that went into effect for 2020. It increased dues by $ 100 so that employees receive $ 900 per 1% profit margin in North America. The contract also removed a maximum of $ 12,000. Individual bonuses are based on the hours worked by each employee in the past year.

“The average payment of $ 8,010 is well deserved for the hard work, dedication and sacrifice that members have shown in 2020,” UAW Vice President Cindy Estrada said in a statement. “I would like to thank the UAW FCA 2019 National Bargaining Team for their hard work in improving the profit sharing plan which achieves a 12% increase in payout this year compared to the previous agreement. “

Approximately 44,000 FCA employees received up to $ 7,280 in incentive payments last year. This year, the maker of Jeep SUVs and Ram trucks has approximately 43,000 eligible hourly workers in the United States. Workers should see the payments on their March 15 paycheck, according to Stellantis.

General Motors Co. and Ford Motor Co. calculate profit sharing based on North American earnings. Their formulas were not changed during union negotiations in 2019.

Still, GM workers will get the biggest gains. The Detroit automaker pay up to $ 9,000 to 44,000 eligible hourly UAW employees compared to $ 8,000 last year. The Detroit automaker made pre-tax profit of $ 9 billion in North America.

Ford payments are the smallest. The checks are $ 3,625, down 45%, based on $ 3.625 billion in pre-tax profits in North America. In 2020, employees of the Dearborn automaker received a bonus of $ 6,600.

[email protected]

Twitter: @BreanaCNoble

Share.

Comments are closed.