Detroit, Michigan – Stellantis NV’s employees represented by the United Auto Workers are in line to receive profit sharing checks averaging $13,860, the automaker announced on Thursday. The potential payout, which could be higher or lower based on hours worked, will reward approximately 38,000 eligible workers. This figure reflects a 6.1% decrease from last year’s profit sharing of $14,760, which was distributed among 40,500 eligible employees.
Stellantis attributed the decreased payout to a 15.4% adjusted operating income margin in North America last year, down from 16.4% the year before. The decline was attributed to issues with the automaker’s inventory mix and a nearly $800 million lost profit from strikes by the United Auto Workers and Canadian union Unifor. This year’s profit sharing payouts are expected to appear in eligible workers’ Feb. 29 paychecks.
Notably, the profit sharing was calculated based on Stellantis’ 2019 labor agreement with the UAW, ensuring that the company paid profit sharing exceeding a total of $51,300 per employee over the years. However, lower-paid supplemental employees are not eligible for this year’s profit sharing. Prior to the new contract last year, supplementals represented 12% of Stellantis’ 43,000-person unionized U.S. workforce, though the UAW won language to roll over those workers to full-time after nine months of employment.
It’s important to note that UAW-represented employees receive up to $900 per 1% of profit margin in North America based on individually compensated hours last year. As it stands, Stellantis plans to distribute approximately $2 billion in profit sharing and variable bonuses globally for 2023.
In comparison, Stellantis employees could see larger payouts compared to its Detroit competitors. General Motors Co. will pay up to $12,250 to about 45,000 eligible hourly workers, while Ford Motor Co.’s payouts will average $10,416 for around 58,000 workers.
In light of these developments, Stellantis CEO emphasized that the profit sharing and variable payout programs are a reflection of the employees’ performance and achievements, a fair recognition of their commitment to succeed as one team. The automaker also revealed plans to expand its share purchase plan to 242,000 employees worldwide in 2024, as well as proposed a dividend to shareholders and announced an open market share buyback program for the year.