The Detroit’s Three 141,000 UAW workers are getting ready to find out during the next few days how much celebrating they have to do – as companies will report the annual profit-sharing checks owed to employees.
General Motors and Ford have been hit last year by surging recall-related spending and product launch costs – so the analysts expect the worker profit-sharing checks not to be overly consistent and maybe lower than in 2014. On the other hand, Chrysler’s employees could have a surge on their profit-sharing checks – which have been negotiated by the UAW as partial replacements of the annual salary hikes for the represented workers. Tomorrow, Ford is forecast to be the first to reveal profit sharing based on 2014 results in North America among the three Detroit automakers, while General Motors will reveal them on February 4. Fiat Chrysler Automobiles is scheduled to reveal information about its worldwide earnings later on today, but the profit-sharing figures might get delayed until February 3.
UAW-represented employees, with a large portion of them working in Michigan, are expected to cash in on the checks in March and then submit to the economy a collective discretionary spending figure of more than half a million dollars. According to Kristin Dziczek, labor economist at the Center for Automotive Research in Ann Arbor, the profit sharing quota starts from between 20% and 30% of the annual salary for autoworkers starting after 2007 and under the lower wage scheme. The amount that settles the profit-sharing check is based on North American pretax income, with the region still the largest profit generator for the three carmakers.