Stellantis NV employees represented by the United Auto Workers could receive profit-sharing checks worth $13,860, though some could be more and others less based on hours worked, the automaker said Thursday.
There are approximately 38,000 workers eligible for the tests. The payout represents a 6.1% decrease from last year's $14,760 with 40,500 eligible employees.
The announcement was part of the automaker's annual financial results based on an adjusted operating income margin of 15.4% last year in North America. That's down from 16.4% in 2022 due to issues with the automaker's inventory mix and the loss of less than $800 million in profits from strikes by the United Auto Workers and Canadian union Unifor.
This year's payments should appear in eligible workers' paychecks on February 29, according to Stellantis.
“This profit-sharing payment recognizes the efforts of our UAW-represented workforce that helped drive the strong financial results Stellantis released today,” Carlos Zarlenga, Stellantis' new North American chief operating officer, said in a statement. “As one of the highest payouts in the company’s history, it clearly demonstrates that we value the contributions of our employees and are committed to rewarding them when their performance supports the company’s success.”
The profit sharing was calculated based on the 2019 employment agreement Stellantis entered into with the UAW, according to the automaker. Under those terms, the company paid profit sharing totaling more than $51,300 to each employee over the years.
Low-wage additional employees, unlike their temporary counterparts at General Motors and Ford Motor Co., are not eligible for profit sharing this year. Before the new contract last year, supplements represented 12% of Stellantis' 43,000-person unionized U.S. workforce, though the UAW won wording to turn those workers over to full-time after nine months on the job.
UAW-represented employees receive up to $900 per 1% profit margin in North America based on their individual compensation hours in the past year. This means that depending on how many employees are working, some may receive more than $13,860, while employees, for example, with a higher number of absences or in factories with longer downtime, may not receive huge compensation.
The union last year highlighted profit-sharing gains in its 2023 contract. Under those terms, which do not apply to the payments announced Thursday, workers whose employment ends after Dec. 31 and before profit-sharing checks go out are still eligible for compensation. In addition, it negotiated “performance-sharing” compensation for additional workers based on a profit-sharing formula.
In total, Stellantis says it will distribute nearly $2 billion (1.9 billion euros) in profit-sharing and variable bonuses globally for 2023, after the automaker reported record net revenues of $203.4 billion (189.5 billion euros) and net profit A record $20 billion (€18.6 billion). Stellantis said last year it was paying 2 billion euros in performance-based benefits.
“These profit-sharing and variable pay programs are more than just a reflection of our employees’ performance and accomplishments,” Stellantis CEO Carlos Tavares said in a statement. “They are a fair recognition of their commitment to success as a team.”
The automaker said it would also expand its stock purchase plan to 242,000 employees worldwide in 2024. The company last year launched a pilot in Italy and France, with a matching contribution of $1,073 (1,000 euros).
Meanwhile, Stellantis has proposed a dividend to shareholders of $1.66 (€1.55) per share, pending their approval. It also announced an open market share buyback program this year worth $3.22 worth of bullion (3 billion euros).
Stellantis employees represented by the UAW could see the largest payouts compared to its Detroit competitors. GM will pay up to $12,250 to about 45,000 eligible hourly workers. The payments were based on the Detroit automaker's $12.3 billion profits last year in North America.
Payments to Ford Motor Co. $10,416, although it can also be lower or higher based on hours worked. The result is based on last year's global adjusted operating income of $10.4 billion. Nearly 58,000 workers are eligible.
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