No Plans For Employee Bonuses Following Trump Tax Cuts, GM Says10
General Motors CEO Mary Barra said the company has no plans for a one-time employee bonus following the passage of the Trump tax-cut bill last month, according to a report from The Detroit Free Press published on Tuesday.
Her comments come after Fiat-Chrysler announced a one-time $2,000 bonus for all employees following the tax-cut bill, which lowers the corporate tax rate from 35 percent to 21 percent. The rival automaker also announced plans to move Ram HD production from Mexico to Michigan in the same announcement. GM has no plans to wholly shift Silverado production from Mexico to the United States.
Barra defended the decision over bonuses and pointed to GM’s profit-sharing compensation system.
“We have a compensation system for both represented and salary workforce,” Barra said. Last year, GM handed out $12,000 in profit-sharing for all represented employees.
GM executives also commented on the state of the auto industry and expects similar profits despite a slightly weaker U.S. auto market. 2018 sales will likely hover in the high 16-million mark; sales in 2017 reached 17.2 million.
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Gm did not “hand out” profit sharing they were negotiated for.
GM has a swelled head, time to get in step with the rest of the nation. Who but the workers helped make it a great company. What would Barras’ Dad say……….
Chrysler also has a UAW negotiated profit sharing plan. The $2000.00 is on top of and 100% not related to profit sharing. It is 100% related to the major tax break it will be enjoying. Taking into consideration that Chrysler is #3 in revenue and profits in the Big 3, I think GM could definitely afford to share in the benefits of a reduced tax.
It is inexcusable for gm not to bring more crew cab truck production back to the USA where it belongs now!
I believe they are with the expansion of the Ft. Wayne, IN. truck plant and it’s new ability to make crew cab units.
GM s a worthless company filled with over-bloated executives who are milking the company coffers every day.
The employees should set them straight.
Mary Barra and General Motors always wait until after Ford and Chrysler have announced their 2017 profits, they normally announce the prior years profits the end of January this year it will be Tuesday February 6th, I still believe in miracles maybe Mary will announce a second quarter corporate tax cut bonus for General Motors employees also
How dare Mary Barra imply that adding a tax break bonus to any profit sharing would be too much to give to the hourly work force. This coming from one who will receive millions in bonuses and profit sharing. Shame on you, Mary Barra.
What’s disappointing about GM and being a long term sales executive is that the tax break in Trumps plan went directly into the pockets of the shareholders (Including Mary B.), and unlike what Chrysler did and have some back to the employees who promote their brand, make sales happen, and keep CSI high, they announced in January that they were cutting sales incentives to sales consultants in 4000 stores nationwide, by 25%…..in my case, that money that I was counting on to support my family is now going to force me to get a 2nd job to cover the $12,000 shortfall in my income. So now I have to work harder, for less money , and if you think thst CSI is going to increase because of this…..you are going to be sadly mistaken, this is going to go the opposite direction, sales won’t care and that will impact bonus on the owner/dealer level….So I hope you are happy that the. 02% increase in shareholder dividend has now lessened the brand efforts by the employees who are on the front line of your current and new customers. With my performance and caliber being at the top 1% of the industry, maybe another brand will appreciate me more . Congratulations.
This and the recent CSI changes is why GM continues to loose all there top salesman in the country to competitive auto brands. Ultimately the dealer/operator has such a high rate of salesman turnover and that also continues to drop CSI scores. It doesn’t take a rocket scientist to figure that one out. Richard Branson once said…..”Employees come first. if you take care of your employees, they will take care of your customers”