Back in January 2023, GM Authority reported that General Motors’ hourly workers received a profit-sharing check of $12,750 per worker, the highest in The General’s history. Now, workers represented by the UAW union will receive another near-record profit-sharing check, albeit just slightly lower than last year.
According to a report from Detroit Free Press, approximately 45,000 U.S. hourly workers will receive a profit-sharing check of up to $12,250, before taxes. This stands as the second-highest payout since 2016, when it amounted to $12,000 per employee.
For reference, the formula for determining the amount of money granted to GM workers is $1,000 for every $1 billion in annual earnings before interest and taxes, or pre-tax profits in North America. Checks will start being sent out in late February 2024.
In order to be eligible for the full payout of $12,250, hourly employees must have accrued 1,850 compensated hours or more over the course of the 2023 calendar year.
It’s worth noting that The General’s UAW-represented temporary employees, along with those at battery facilities across the United States, are now eligible for profit-sharing checks for the first time ever under the new national agreement the union has with General Motors.
As a reminder, GM and the UAW union reached a tentative agreement back in October 2023, and ratified the same contract the following month. Over the course of the union-wide strikes, it’s estimated that the Detroit-based automaker lost $1.1 billion, and had a loss of production amounting to roughly 95,000 units, with the vehicles like the Chevy Colorado, GMC Canyon, Chevy Traverse, and Buick Enclave bearing the brunt of the impact.
As such, General Motors issued revised earnings guidance for the 2023 calendar year, as well as a $10 billion accelerated share repurchase program intended to increase the company’s common stock dividend by 33 percent.