One of the company’s top executives said the future is bright for local auto workers on the same day that union GM employees in Western New York learned they would get checks for $12,250 profit-sharing. Payouts to employees usually arrive around the end of February expected on 23 February 2024.
GM Profit Sharing
On Tuesday, General Motors said that the cost of a 40-day strike at several of its U.S. facilities and an accounting penalty associated with electric vehicles had negatively impacted the company’s profit in the last three months of 2023.
The carmaker, which has been counting on a sharp increase in battery-powered model sales, reported earnings of $2.1 billion for the fourth quarter, up from $2.0 billion for the same period last year. G.M.’s sales reached $171.8 billion, an increase of around 10%.
Paul Jacobson, CEO of G.M., said that E.V. growth was stuck, which caused concern. The UAW strike cost $1.1 billion, and battery suppliers had to pay a settlement of $800 million.
G.M. suffered financial loss on electric vehicles as a result of a $1.7 billion charge resulting from expensive battery cells. However, expenses are coming down, and it’s anticipated that electric trucks and automobiles will turn a profit in the second part of this year.
G.M. said that it made $10.1 billion for the entire year, up about 2 percent from 2022. About 45,000 of its U.A.W. employees would get profit-sharing incentives of up to $12,250 based on the business’s 2023 profitability, the company announced.
How much is GM Profit Sharing Payout Per Person?
In February, General Motors on 30 January 2024 said 45,000 United Auto Workers Union members, including those employed by General Motors in Spring Hill, will get a profit-sharing check. Over 3,000 United States workers are employed in the 11 million square foot Spring Hill GM facility.
Up to $12,250 might be awarded to them. A 5% decrease from $12.9 billion to $12.3 billion in pretax earnings for GM in North America was recorded in 2023.
Based on yearly earnings before interest and taxes, or pre tax profits for North America, the Detroit Free Press claimed that the profit-sharing payments had a value of $1,000 for each $1 billion in earnings.
According to GM spokesperson David Caldwell, the total is $12,250 rather than $12,300 since the cheques are being handed out in $250 increments.
GM Profit-Sharing Payout Date
An hourly worker would get the entire compensation if they worked 1,850 or more hours in 2023. Checks to qualified employees will be sent in late February, according to Caldwell.
Director of the GM department and UAW Vice President Mike Booth informed GM members in a letter dated Tuesday that the payment will be paid on February 23. “As always, our membership performed beyond all their potential,” Booth remarked.
“This profit was made possible by the talent of our members, who manufacture the best items in the world, right here in the United States of America. Without the excellent labor and commitment of our membership, these revenues would not be possible.”
Who is Eligible for GM Profit-Sharing Payout?
Despite probable headwinds in the economy and sales, General Motors exceeded Wall Street’s projections for both its top and bottom lines in the fourth quarter and is predicting another successful year.
- According to a UAW source who spoke with the Detroit Free Press, the new national agreement the union has with GM allows for profit-sharing for the first time ever for GM’s union-represented temporary employees as well as those at GM’s battery services.
- According to the GM/United Auto Workers agreement, GM pays $1,000 to its U.S. employees for every $1 billion the manufacturer produces in North America.
- An hourly worker would get the entire payment if they worked 1,850 or more hours in 2023.
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