Fiat Chrysler to pay $7,280 in profit-sharing to UAW members
Fiat Chrysler Automobiles NV's profit-sharing checks of up to $7,280 to roughly 44,0000 eligible hourly United Auto Workers members are even more than its No. 2 crosstown rival.
The Italian American automaker, which made $3 billion last year, announced profit-sharing Thursday as part of its full-year 2019 earnings report. Its North American profit margin — the figure its profit-sharing is based on — was 9.1%.
Workers should see the payments in their March 13 paycheck, according to Fiat Chrysler. Last year, Fiat Chrysler paid up to $6,000 to 44,000 eligible UAW members on an 8.6% profit margin in 2018 in North America.
The bonuses for 2019 are not representative of the better profit-sharing formula UAW negotiators obtained in the contract union members ratified with FCA in December. That goes into effect next year. The new formula will increase contributions by $100 to $900 per 1% of profit margin in North America. A $12,000 maximum also was removed.
“Through collective bargaining UAW members were able to bargain profit-sharing to adequately reflect their role in FCA US’ profitability," Cindy Estrada, UAW vice president and FCA Department director, said in a statement. "UAW FCA members make some of the best-selling quality products in America. Today’s eligible profit sharing amount of $7,280 per member, reflects that hard work, dedication and product success.”
Some of Fiat Chrysler's checks will be greater than UAW members receive at Ford Motor Co. The Dearborn automaker will give 53,000 eligible hourly UAW members $6,600 profit-sharing checks this year. Those profit-sharing checks will go out in March. The amount is based on North American earnings, which totaled $6.612 billion before interest and taxes in 2019. Last year, Ford's eligible UAW members received $7,600.
General Motors Co. will pay about 44,000 eligible UAW hourly employees profit-sharing bonuses of up to $8,000 this year. Its pre-tax profits in North America totaled $8.2 billion. Workers should see the payments this month. The year prior, 46,500 UAW-GM members received $10,750 in their bonus.