FCA-UAW members to receive $4,000 in profit sharing
About 40,000 United Auto Workers members with Fiat Chrysler Automobiles NV will receive profit sharing payments of up to $4,000 for 2015.
The bonuses are the largest under the automaker’s four-year contract with the UAW from 2011, up 45 percent from the previous high of $2,750 in 2014. Employees will receive the payment on Feb. 19.
FCA US, the company’s North American-based operations, announced the payments Wednesday after the automaker reported that the overall company earned $410 million in 2015. Earning in its North American region were up 60.7 percent from 2014.
“The financial strength of FCA relies on their UAW workforce as evidenced in their financial report earlier today,” said UAW-FCA US Vice President Norwood Jewell in a statement. “Our members are proud to share in the profits of their hard work and dedication to Chrysler, Jeep, Ram and Dodge customers and the strength of the collective bargaining process.”
Eligible UAW workers received $1 for every $1 million in profits under the previous contract, based on 85 percent of FCA US earnings (formerly Chrysler Group LLC).
Starting in 2016, as part of a four-year deal reached last year, profit sharing payments will be based on the automaker’s North American profit margin before interest and taxes. Members, based on hours worked, will receive $800 for every 1 percent of North American profit margin.
If the 2015 payment was based on the new formula, members would have received about $4,800 based on the automaker’s 6.4 percent profit margin in North America.
The union negotiated the new profit sharing formula following recent years in which FCA US workers received far less than union employees at General Motors Co. and Ford Motor Co.