General Motors Workers Get $12,000 Profit-Sharing Checks

DETROIT, MI — General Motors’ 52,000 hourly workers will get a big payday after the Detroit-based automaker posted record profits in 2016 — bonus checks of up to $12,000. The payouts, negotiated in 2015 contract talks with the United Auto Workers, could cost GM $624 million, according to media reports.

The profit-sharing checks are based on GM’s 2016 pre-tax profit, a record $12.05 billion in North America, up 9.3 percent from the year prior. The agreement provides that GM-UAW hourly workers receive $1 for every $1 million earned by the company.

“Today’s performance bonus announcement of a maximum of $12,000 each rewards our members’ dedication and commitment to building some of the most popular and high-quality vehicles in the world,” UAW Vice President Cindy Estrada, head of the GM department for the union, said in a statement.

“By almost any measure, 2016 was a great year for our business and I am confident we can achieve even stronger results,” GM Chief Executive Mary Barra said, according to Forbes. “We’ll work to build on our momentum, while continuing to drive our company to innovate and shape the future of mobility.”

UAW members at each of Detroit’s Big Three automakers are receiving profit-sharing bonuses, The Detroit News reported. Ford Motor Co.’s 56,000 UAW workers are receiving $9,000 each, and the 40,000 UAW workers at Fiat Chrysler Automobiles NV will receive checks of $5,000.

Photo by Michael Kumm via Flickr Commons