FCA-UAW members to receive $5K profit-sharing bonus
About 40,000 United Auto Workers with Fiat Chrysler Automobiles NV next month will receive average profit-sharing payments of $5,000, according to the company.
The bonuses were negotiated as part of the union’s 2015 contract with the Italian-American automaker. They are based on the company’s North American profit margin, which was 7.4 percent in 2016 — a 1 percent increase compared to 2015.
Employees are expected to receive the payment on Feb. 17.
The profit-sharing formula under the new four-year contract differs from the past four years, which were based on $1 for every $1 million in profits under the previous contract, based on 85 percent of FCA US earnings (formerly Chrysler Group LLC). Under the previous deal, workers would have only received $4,000.
The new contract is based on workers receiving $800 for every 1 percent in profit margin generated by Fiat Chrysler’s North American unit and is based on individual compensated hours.
Overall, the company on Thursday reported its net profit nearly doubled from 93 million euros ($99.8 million) in 2015 to 1.8 billion euros ($1.9 billion).