Stellantis has announced that employees who are members of the United Auto Workers (UAW) will receive a profit-sharing check of $3,780 this year, representing a dramatic 73% decrease from the $13,860 received the previous year. This bonus will be distributed to approximately 38,800 workers, with amounts varying based on each employee’s worked hours.
Stellantis: drastic reduction in profit-sharing bonuses for employees
The announcement was made alongside the release of the company’s annual financial results on Wednesday. Stellantis reported an adjusted operating margin of 4.2% in North America, significantly down from 15.4% the previous year, due to difficulties encountered in the region and a substantial reduction in sales. The checks will be issued on March 7, with the final amount determined according to the 2023 UAW labor contract, which provides $900 for each percentage point of North American profit margin, calculated based on hours worked.
An important new feature introduced in the 2023 labor contract ensures that employees who left the company after December 31, but before the checks were issued, retain the right to receive their payments. Additionally, supplemental workers will also receive a “performance sharing” payment based on the same formula, although their numbers have decreased compared to when the contract was initially negotiated.
In comparison, Stellantis‘ competitors have announced significantly higher bonuses for their UAW employees. General Motors (GM) has announced record profit-sharing checks of up to $14,500 for 48,000 eligible workers, while Ford has stated that its 57,000 qualified workers will receive approximately $10,208, slightly less than the previous year’s amount. This stark contrast highlights Stellantis’ current financial difficulties and the challenges the company will face in a complex market characterized by declining vehicle sales.