Ford and GM workers will receive big checks at the beginning of 2013, according to The Wall Street Journal.
The United Auto Workers has told its members that early next year, Ford workers can expect $8,000 each, while GM workers will get around $7,000 each. In 2011 Ford paid out $6,200, while GM awarded almost $7,000. For both automakers’ workers these profit-sharing checks would be 11% to 14% of the typical autoworker’s annual wage of about $58,500.
These checks are a clear sign that the auto industry in the US has managed to revive from the 2008-2009 financial crisis, when GM and Chrysler filed for bankruptcy and thousands of workers were laid off. Profit-sharing checks are based on how much operating profit Ford and GM have made in North America. During the first three quarters Ford’s North American unit made $6.47 billion and GM’s North American business reached $5.55 billion. Substantial profits are expected for the fourth quarter too.
Due to these substantial profits, almost 50,000 GM hourly employees will receive payments between $5,500 and $7,000 each, while Ford’s 44,000 workers will get more than $8,000 each. According to Edmunds.com predictions, automakers will share a 1.36 million annualized sales rate for this month, an increase of 9.6% compared with last year and 19.1% from November.