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Stellantis NV’s UAW Employees to Receive Profit Sharing Checks of $13,860 in 2023

Stellantis Employees Could Receive Profit-Sharing Checks of $13,860

Stellantis Employees Could Receive Profit-Sharing Checks of $13,860

Annual Profit-Sharing Announcement

Stellantis NV, an automaker, announced on Thursday that employees represented by the United Auto Workers (UAW) could expect generous profit-sharing checks. The checks, which vary based on individual working hours, will amount to an average of $13,860 per eligible worker. However, some employees may receive more or less depending on their specific circumstances.

Decrease in Payout

This year’s payout represents a 6.1% decline from the previous year. In 2022, Stellantis distributed profit-sharing checks amounting to $14,760 among 40,500 eligible employees. As a result, the latest announcement affects approximately 38,000 eligible workers.

Financial Results

The profit-sharing payouts are based on the automaker’s financial performance in North America. Stellantis reported a 15.4% adjusted operating income margin in the region for the previous year. However, this margin represents a 1% reduction from 2022’s 16.4% due to issues with inventory mix and an approximate $800 million loss in profit caused by strikes by the UAW and Canadian union Unifor.

Recognition of Employees’ Contributions

Carlos Zarlenga, Stellantis’ new Chief Operating Officer in North America, stated that the profit-sharing payments serve as recognition for the UAW-represented workforce, acknowledging their efforts in delivering robust financial results for the company. With this year’s payments amounting to one of the highest in Stellantis’ history, Zarlenga affirmed the company’s commitment to rewarding employees’ notable performance.

Profit Sharing Calculation and Eligibility

The summary of profit-sharing payments is a result of the 2019 labor agreement between Stellantis and the UAW. Since then, Stellantis has ensured that individual profit-sharing exceeds $51,300 per employee over the agreement’s duration. However, lower-paid supplemental employees, unlike temporary-worker counterparts at General Motors Co. and Ford Motor Co., will not be eligible for this year’s profit sharing.

Varying Payouts Based on Performance

Eligible UAW-represented employees will receive up to $900 for every 1% of profit margin in North America, depending on their individually compensated hours. Therefore, employees who worked more hours may receive more than the average $13,860, while those with more absences or at plants experiencing more downtime may receive a comparatively smaller payout.

Union Highlights and Negotiations

The UAW emphasized the gains they secured regarding profit sharing in their 2023 contract. Specifically, the contract assured that employees whose employment ends before the profit-sharing checks are distributed will still receive the payment. Furthermore, the UAW negotiated a “performance-sharing” payout for supplemental workers, aligning the payout with the profit-sharing formula.

Substantial Payouts and Expanding Employee Benefits

Stellantis announced the distribution of approximately $2 billion (1.9 billion euro) in profit sharing and variable bonuses worldwide for 2023. This comes after the automaker achieved a record net revenue of $203.4 billion (189.5 billion euro) and net profit of $20 billion (18.6 billion euro). Stellantis will also expand its share purchase plan, offering it to 242,000 employees globally in 2024. In addition, the company revealed plans for a $3.22 billion (3 billion euro) open-market share buyback program this year.

Payout Comparisons with Competitors

Stellantis employees are slated to receive the largest profit-sharing payouts among their Detroit competitors. General Motors Co. plans to pay up to $12,250 to its 45,000 hourly workers, based on the company’s $12.3 billion earnings in North America last year. Ford Motor Co. employees, on the other hand, will receive payouts of approximately $10,416, which may vary based on individual hours worked. Ford’s payout reflects its $10.4 billion in global adjusted operating income in 2023, with approximately 58,000 employees eligible.

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