General Motors Co. will deliver record profit-sharing payouts of up to $14,500 this year to about 48,000 eligible hourly workers, according to the company’s financial results released Tuesday.
The previous record of up to $12,750 for about 42,300 eligible hourly employees was set in 2023. Last year, GM paid roughly 45,000 workers up to $12,250. Employees typically receive the payouts at the end of February.
GM CEO Mary Barra, in a letter to shareholders, said the payouts would amount to $640 million in cost for the company.
“That’s a record payout of up to $14,500 per person,” she wrote, “equal to more than two months of extra pay on average for our UAW-represented team.”
For every $1 billion GM makes in North America, the automaker’s hourly U.S. employees receive $1,000, according to the Detroit automaker’s agreement with the United Auto Workers. GM made about $14.258 billion in North America in 2024, up 18% year-over-year.
During the UAW talks with the Detroit Three automakers in 2023, the union retained its profit-sharing formula with GM and negotiated profit-sharing payouts for temporary employees. In the 2019 agreement, the parties removed a $12,000 cap on profit sharing, paving the way for higher payments like those for 2025.
Barra’s letter also noted global salaried employees will receive “strong performance bonuses” and that investors earned a 50% total return for 2024.
Ford Motor Co. reports its earnings, including profit sharing, after the market closes on Feb. 5. Stellantis NV reports before markets open in Europe on Feb. 26.
bnoble@detroitnews.com
@BreanaCNoble
The United Auto Workers (UAW) have announced the details of their new contract for 2024, and members are in for a significant pay increase. According to the latest reports, UAW members will see a raise of 3% in their base pay, along with a bonus of $2,000 for each member.
This news comes as a welcome relief for UAW members who have been working hard to negotiate fair wages and benefits with their employers. The increase in pay and bonus will help to offset the rising cost of living and provide much-needed financial support for UAW members and their families.
Overall, this new contract is a significant win for UAW members, and demonstrates the power of collective bargaining in securing fair wages and benefits for workers. Congratulations to all UAW members on this well-deserved victory!
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