GM workers represented by the United Auto Workers (UAW) labor union will receive a profit-sharing check amounting to $10,250 later this month, surpassing the profit-sharing checks issued last year despite the fact that the 2021 calendar year was beset with production issues stemming from the ongoing global microchip shortage.
“General Motors is proud to provide our hourly employees with among the highest profit-sharing payments in the auto industry,” said GM spokesman Dan Flores, per a report from Detroit Free Press. “In fact, eligible hourly employees have earned more than $72,000 each in profit-sharing since 2015.”
The $10,250 profit-share check is an increase of $1,250 compared to the $9,000 profit-share check that UAW-represented GM employees received last year. Employees are expected to receive their check by February 25th, with hourly employees who accrued 1,850 or more compensated hours during the 2021 calendar year set to receive the full amount. Temporary employees and subsystem employees will not receive a check.
Profit-sharing checks have been on the rise for GM employees over the last few years, with $8,000 checks issued in 2019. However, the biggest checks were sent out in 2016, amounting to $12,000 per employee.
The amount is based on a formula that was negotiated between GM and the UAW, designating $1,000 for every $1 billion in annual earnings before interest and taxes. GM’s North American 2021 pretax profit amounted $10.3 billion, up from $9.1 billion in 2020. The recent Q4 2021 earnings report is headlined by $1.7 billion in income on $33.5 billion in revenue.
According to Flores, the higher profit-sharing checks are the result of GM’s efforts to maximize production of its most profitable vehicles, namely its full-size SUVs and pickups.
“In 2021, the entire GM team delivered, including the manufacturing and supply chain organizations, by working with our supply base to mitigate the impacts of the semiconductor situation,” Flores said. “We leveraged every available semiconductor to build and ship our most popular and in-demand products.”
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Comments
I think this profit-sharing or profit-sharing scheme for GM employees is great and is also higher than with German car manufacturers!
But I don’t like that only UAW members get the bounty. I can imagine that the UAW will also get a share of x%. I find equal RIGHTS and equal MONEY for all employees at GM worldwide.
This would then be more social than is currently the case with all OEMs worldwide!
Asking as a Canadian what would the net amount be after taxes be!
As non-earned income the withholding could be 40%. Still it is more money than they had the day before.
how much of that does the good ole uaw get?
Good for them! Execs are not the only ones who should reap a windfall.
What about pension checks least Not forget who paved the way
Retirees get nothing again they paved the way!
Retirees have great pensions. Most people don’t have pensions anymore. My father had his health insurance till he died. Its important to max your IRA’s each and every year. Plus you tax benefits. You need to plan ahead.
Use that money wisely. With EVs coming on, union jobs will be decreasing. The sales competition from foreign companies that own non union plants to build EVs will be fierce. gm, Ford and Stellanis in for tough times in the new EV era.
And no dividends for the stock holders.
With the time the EV transition will take most cuts will be via retirement.
But there will be more tech jobs added.
If they would reduce the payments to the union members and the executives by only 1% they would be able to pay their shareholders a small dividend. We have supported GM through the bankruptcy and bought their stock as soon as it was available, held on thru some pretty big drops and still hold the stock today so why no dividend?
Probably because with everything going on people want employees taken care of way more then some stock holders.
Great for the employees now GM get the vehicles out! I don’t know how GM is surviving kinda interesting!
As if car prices aren’t already ridiculous!!
I worked for GM from 1980 til 2000 never got more than a couple hundred dollars a year and most years got nothing.
I’m a subsystem employee. I work just as hard or harder than the “regular” employees and we get crapped on by regular employees. We are treated like rented mules and given half the pay the others get. GM can suck it.
To the comment ” we should unionize”….we are. They even set up a “seperate part” for LOC. But the union and company have been dancing around for more than a year, doing nothing but collecting union dues and leaving the workers twisting in the wind.
Retired out of Oshawa Ontario in 2016. When Bob White convinced the Canadian membership to break from the UAW, the issue of profit sharing was the focal point for the creation of the CAW. Canadian workers had decided an hourly wage increases in each year of the contract plus cost of living that was calculated on a quarterly basis. At the negotiation of each new contract, which was normally 3 years, the cost of living increase we received throughout those 3 years was rolled into our base rate pay. When I retired I had made approximately $120,000 more than a comparable UAW worker who had opted for the profit sharing in the 1980’s. That’s 3 kids through university right there!
What about the Fairfax workers who were forced on layoff for 32 weeks? Because GM moved chips to more profitable plants.
cry
I’ve been retired since 2007. I don’t begrudge these employees getting this profit sharing. If you think it’s unfair, chances are that you are not a UAW protected employee. These benefits are negotiated and the companies don’t seem to be complaining. UNIONS FOREVER!!!
Have you looked at UAW membership numbers compared to 30 years ago. Great benefits, corrupt officials, many fewer UAW jobs. Record number of non union automotive jobs now in assembly plants owned by foreign makers. Their employees not interested in unions. We will see who survives the upcoming brutal EV sales competition.