Employees of Stellantis NV, maker of Jeep SUVs and Ram pickup trucks, represented by the United Auto Workers, could see checks for eligible $14,760 in pre-tax profit sharing next month.
There are 40,500 eligible workers for the controls. The payout is an increase of less than 1% year-on-year following record-breaking results from Stellantis NV in North America in 2022, despite ongoing supply chain constraints.
The automaker, formed from the merger of Fiat Chrysler Automobiles NV and French rival Groupe PSA, announced a profit-sharing arrangement as part of its 2022 full-year results early Wednesday. Profit sharing for US employees is based on Stellantis’ adjusted operating profit margin in North America. It rose slightly to 16.4% from 16.3% in 2021.
Stellantis paid 43,000 employees up to $14,670 in profit sharing last year, the highest in 35 years at the time. According to Stellantis, this year’s payouts should appear in eligible employees’ March 10 paychecks.
Eligible employees will receive a payout based on hours paid for 2022. That includes those scheduled to be laid off next week at the Jeep Cherokee plant in Belvidere, Illinois, when it is idle. The plant employs 1,350 white and hourly workers.
“The significant contributions of our UAW-represented workforce have enabled us to announce strong financial results for the second half and full year 2022 today,” said Mark Stewart, Stellantis North America chief operating officer, in a statement. “These results reflect the discipline and determination with which they approached the new vision for our company. I am proud of what this team has been able to achieve over the past year despite the challenges we have faced.”
Associates earn up to $900 per 1% margin in North America based on individually paid hours over the past year. This means that depending on a large number of employees, some may receive upwards of $14,760, while employees at plants with more downtime may not receive as large a payout due to the world’s microchip shortage or other supply chain issues.
The results represent an improved formula from the 2019 UAW treaty, which went into effect in 2021. It lifted a $12,000 cap and increased contributions by $100 a percentage point. Hourly workers have received up to $37,440 under the current agreement.
Beginning this summer, UAW negotiators will again meet with representatives from Stellantis and its crosstown rivals. The UAW’s new international board on Tuesday increased strike payments from $400 to $500 a week in response to persistent inflation and ahead of contract negotiations. It was a step taken by delegates to the UAW constitutional convention in July, but later reversed under scrutiny.
Overall, Stellantis says it will pay out $2.13 billion in performance-related benefits for 2021, up $213 million from last year after the automaker released its results exceeded for 2021.
“It is a fair recognition of the contribution of all Stellantis employees to help Stellantis win in a very challenging economic environment,” CEO Carlos Tavares said in a statement. “When the company is doing well, everyone is doing well – that’s what our pay-for-performance culture is all about.”
Stellantis employees represented by the UAW receive the highest payouts compared to their Detroit-based competitors. General Motors Co. and Ford Motor Co. calculate profit sharing based on North American profits. Workers get $1,000 for every billion dollars their employer makes.
GM will pay up to $12,750 to 42,300 eligible UAW hourly workers, compared to $10,250 last year to 42,500 workers. The Detroit-based automaker had operating revenues of approximately $13 billion in North America.
Ford’s payouts are the smallest. Checks total $9,176, compared to $7,377 paid out last year, based on $9.2 billion in North American earnings before taxes and inflation. Ford has 56,000 hourly workers in the US, although temp workers are not eligible for the profit-sharing checks.
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