GM Employees Receive Record $12,750 Profit-Sharing Check29
GM’s hourly workers will receive their largest profit-sharing checks in history, amounting to $12,750 per worker, during February 2023, according to financial information released on January 31st, 2023. The payment will be added to eligible workers’ paychecks on February 24th, 2023.
Approximately 42,300 employees qualify to receive the payment. A 2019 agreement between the United Auto Workers (UAW) and GM saw the latter agree to pay hourly workers $1,000 in profit-sharing for every $1 billion in profits General Motors earns within the North American market. The company’s nearly $13 billion of earnings in North America during 2022 led to the $12,750 payments now expected.
A profit-sharing windfall of this record-breaking size is only possible because of UAW negotiations in 2019. At that time, the union successfully urged GM to remove a $12,000 upper limit on profit-sharing payments to employees previously in effect, The Detroit News reports.
GM has repeatedly made profit-sharing payments to its workers over the years in accordance with its agreements. In February 2022, it handed out payments of $10,250 to each worker in spite of business disruption from the microchip shortage and other supply chain problems.
The profit-sharing amount was up from the $9,000 paid to each eligible employee in early 2021. As GM spokesman Dan Flores pointed out, the automaker’s workers “have earned more than $72,000 each in profit-sharing since 2015” as of 2022, a figure soon to climb to over $84,750 with the upcoming round of payments.
GM also paid sizeable bonuses to workers in the pre-pandemic days. Salaried, white-collar employees earning approximately $100,000 per year got an $11,400 bonus in 2020, based off the company’s 2019 profits. Unionized workers received $11,750 profit-sharing bonuses in 2018 following $12,000 bonuses in 2017.
Robust 2015 profits gave UAW workers $11,000 bonuses in February 2016, after getting $9,000 apiece the previous year. GM originally negotiated the system to avoid growing fixed wage costs, which would result from wage hikes in contracts. The profit-sharing model is intended to give workers a stake in the company’s success, as higher production and sales translate to higher bonuses for them.
GM CEO Mary Barra stated in her January 31st, 2023 fourth-quarter (Q4) letter to shareholders that “our eligible U.S. hourly employees earned record profit sharing totaling $500 million, which brings the three-year total to $1.2 billion.” She also remarked that the workers’ “hard work helped us deliver industry-leading initial quality and meet strong customer demand.”
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Does this bonus apply to Canadian workers as well
Why doesn’t this trickle down to its stock price? It has been a bit flat lately. Kudos for Mary, record profits from North American operations.
Tesla proves there is a SUCKER born every minute.
With 20 B in profits, GM needs to correct their error and honor the agreements that were violated for Lordstown Warren and Baltimore plant employees.
4 years waiting is long enough.
GM’s problems in 70’s, 80’s. 90’s, 2000’s was because of piss poor design and engineering blunders that caused customers to look elsewhere. Dont blame production workers for lack of design and engineering brain power.
Interest rates up, gas prices are up, and inflation is biting the consumer from every angle. Those things have never translated into higher auto stock prices. The dealers I know are nowhere near as optimistic as GM for the next 12 months.
A huge problem in the business, no one seems to be addressing is service and body shop technicians. Who will replace the people starting to retire now? Good body shops are two months behind and good service shops are two to three weeks behind. Our country desperately needed a strong vocational program twenty years ago. The really good service technicians are leaving dealerships because of the reduced rate warranty pay. Why do the same job for less money? With all the money GM made, the could have easily paid standard rates and retained technicians.
And we wonder why vehicles cost so much! I’ve toured factories and haven’t seen anyone working even remotely hard. They check there cell phones all the time.
It this Mary Barry again??
Spoken like someone who never worked a day in his life.
Next time, put your coffee down and jump on the line and fill in for someone and walk in their shoes.
Do that for a day a week a year or a career. Then tell us what you think.
How do you know if these people are working hard or aren’t working hard?
What metric are you using to judge the level of their work?
You do know the line has to move at a set speed for a reason, right?
Congratulations to the GM hourly work force and thanks to the UAW. 🇺🇸
I am a GM retiree’s spouse and he had over 30 years service. We have not received a raise or profit sharing check in over 17 years. Inflation does eat up a fix check that does not get cost of living raises.
GM does not care and the greedy young union members only think of themselves.
What about the retired employees who helped build GM do we not deserve a raise of some sort in Canada I worked there for 25 years we have not had a raise since 2007 and still buy nothing but GM products what about us ??
I agree why is that all GM retires not a factor when it comes to making GM what it is,we are nothing but forgotten .
Not to worry Antares you will eventually know what us old retires talkin about older is tough a little bite of the pie is great for all who sacrificed our surgeries because of GM.
Whats with all the crying ?
Were you not paid then, have a pension, no tiers and compensated at the time?
If you want more then go back to work.
It’s hard to go back to work. I am 70 years old. I have MS, two knee replacements, and I feel and broke my arm at the shoulder. Six weeks therapy.
You sound like one of the young greedy union members that does not think about senior citizens.
I’m guessing when your husband was in the UAW he never once voted for retirees to receive part of the profit sharing.
Could have come in handy about now, but he was one of the greedy union workers you’re now complaining about.
I retired from GM in 2006 and have not had a raise or profit sharing check since. Inflation continues to erode my pension and the greedy union employees and GM could care less.
Be interesting to see how UAW workers feel about all the “GM is failing” and “Barra is running GM into the ground” that many post here. Another example of the online echo chamber.
I think Marry Barra is doing a great job. GM is in such a good place, better than it’s ever been. In a time of recession and pandemic shortages, GM has somehow managed to get everyone buying Corvettes and having more demand than they can possibly supply. GM pays their employees way more than than any manufacturing company in the area, and now they’re getting $9k-$12k in bonuses??? This is the stuff that makes me happy to see. Their products are awesome and they have competitive wages/bonuses.
I to am a retired GM worker who pretty much got bullied to retire. Who was told that the plant was closing in the near future and would have to relocate to Texas or Louisiana if you wanted to work for JGM any longer. I myself would be happy with at least 10% of what the employees get for their profit-sharing checks but we should get a fair share being that a lot of us built GM to what it is today. The thing that a lot of people don’t remember is when we started at GM making $5.35 an hour working long hours and being laid off a lot collecting unemployment and TRA during the trade readjustment act in competition with overseas. But yes the workers of today don’t remember that because most of them weren’t even born yet.
A lot of these retirees on here talking about “building the GM to what it is today” couldn’t be more wrong. It’s these legacy workers that built GM to where it was in 2008, bankrupt. Come on, the cars that came out in the 70’s 80’s 90’s and 00’s were junk, some were rebranded junk into a “luxury vehicle” with just some different badges. The decline started in the 70’s, GM and it’s workers dropped the ball and were so arrogant they thought they could be the worlds largest carmaker for ever. Then came efficient carmakers like Toyota, VW and Honda putting out high quality cars. Post bankruptcy GM is not the same as pre bankruptcy GM, not even close. Pre bankruptcy GM had to babysit this same mindset that feels one should be paid even if they are not working for the company.
Do you continue to pay the landscaper that planted your trees 20 years ago? That would actually make more sense than a retiree from GM getting profit sharing. The tree is still growing and providing increased value.
Thank you !!!
I left GM at the end of September last year After 5 1/2 years of service and Benefits say I’m eligible for any part of profit sharing because I didn’t finish out the year. Is that correct?