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Employees of Stellantis NV, maker of Jeep SUVs and Ram minivans, represented by the United Auto Workers, could see next month’s $14,760 profit-sharing checks, though some could be more and some less, the automaker announced Wednesday.
There are 40,500 workers eligible for checks. The yield represents an increase of less than 1% from last year after Stellantis NV’s record results in North America in 2022, although supply chain constraints remain.
The automaker formed from the merger of Fiat Chrysler Automobiles NV and French competitor Groupe PSA announced its profit sharing early Wednesday as part of its full-year 2022 earnings. Profit sharing for US workers is based on Stellantis’ North America adjusted operating income margin. It increased slightly to 16.4% from 16.3% in 2021.
Last year, Stellantis paid 43,000 employees up to $14,670 in profit sharing, the most in 35 years at the time. This year’s payments must appear in eligible workers’ payroll on March 10, according to Stellantis.
Eligible seniority employees will receive compensation based on compensated hours for 2022. This includes those who are scheduled to be laid off next week at the Jeep Cherokee plant in Belvidere, Illinois, when it is set idle. The factory employs 1,350 wage and hourly workers.
“Significant contributions from our UAW represented workforce enabled us to announce the second half of 2022 and the full financial segment for the full year today,” Mark Stewart, Stellantis North America chief operating officer, said in a statement. “These results reflect the discipline and determination with which they approached the new vision of our company. I am proud of what this team was able to achieve last year despite the challenges we still face.”
Employees receive up to $900 per 1% gross margin in North America based on individual compensation hours last year. This means that depending on how much employees have worked, some of them may get more than $14,760, while employees at factories experiencing more downtime due to global microchip shortages or other supply chain issues may not. huge compensation.
The results represent an improved version of the 2019 UAW contract that takes effect in 2021. It removed the $12,000 cap and increased contributions by $100 per percentage point. Hourly workers received up to $37,440 under the terms of the current agreement.
UAW negotiators will meet with representatives for Stellantis and its crosstown competitors again starting this summer. The UAW’s new governing International Executive Board on Tuesday increased the strike pay to $500 a week from $400 in response to continuing inflation and ahead of contract talks. It was a move that delegates to the UAW Constitutional Convention made in July, but later scrapped under much scrutiny.
In total, Stellantis says it will distribute $2.13 billion (€2 billion) in performance-based benefits for 2021, an increase of $213 million (€200 million) year-on-year after the automaker passed its 2021 results.
“It is fair recognition of the contribution of all Stellantis employees in making Stellantis win in a very difficult economic context,” CEO Carlos Tavares said in a statement. “When the company is doing well, all employees are doing well – this is the core of our pay-for-performance culture.”
Stellantis employees represented by the UAW will receive larger payouts than their Detroit competitors. General Motors and Ford Motor Company calculate profit sharing based on North American earnings. Workers receive $1,000 for every $1 billion earned by the employer.
GM will pay up to $12,750 to 42,300 qualified UAW employees per hour versus $10,250 last year to 42,500 workers. The Detroit automaker generated about $13 billion in North American operating income.
Ford’s payments are the smallest. The checks come in at $9,176, compared to a payment of $7,377 in the prior year, based on $9.2 billion in earnings before tax and inflation in North America. Ford has 56,000 hourly employees in the US, though temporary workers are not eligible for profit-sharing checks.
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