Employees of Stellantis NV, maker of Jeep SUVs and Ram pickup trucks, represented by the United Auto Workers could see profit sharing checks next month of $14,760, though some could be more and some less, the automaker announced Wednesday.
There are 40,500 eligible workers for the checks. The payout is a less than 1% increase from last year following Stellantis NV's record results in North America in 2022, despite continued supply-chain constraints.
The automaker formed from the merger of Fiat Chrysler Automobiles NV and French rival Groupe PSA announced profit-sharing early Wednesday as part of full-year 2022 earnings. Profit-sharing for U.S. workers is based on Stellantis' North American adjusted operating income margin. It increased slightly to 16.4% from 16.3% in 2021.
Stellantis last year paid 43,000 employees up to $14,670 in profit-sharing, the most in 35 years at the time. This year's payouts should appear in eligible workers' March 10 paychecks, according to Stellantis.
Eligible seniority employees will receive a payout based on compensated hours for 2022. That includes those slated to be laid off next week at the Jeep Cherokee plant in Belvidere, Illinois, when it's set to idle. The plant employs 1,350 salaried and hourly workers.
"The significant contributions of our UAW-represented workforce enabled us to announce strong 2022 second half and full year financials today," Mark Stewart, Stellantis' chief operating officer in North America, said in a statement. "These results reflect the discipline and determination with which they have approached the new vision for our company. I am proud of what this team was able to achieve last year in spite of the challenges we continued to face."
Employees receive up to $900 per 1% of profit margin in North America based on individually compensated hours last year. That means depending on much employees worked, some may receive more than the $14,760, while employees at plants with more downtime because of the global microchip shortage or other supply chain problems may not get as hefty a payout.
The results represent an improved formula from the UAW's 2019 contract that went into effect in 2021. It removed a $12,000 maximum and increased the contributions by $100 per percentage point. Hourly workers have received up to $37,440 under the terms of the current agreement.
UAW bargainers will meet representatives of Stellantis and its crosstown rivals once again starting this summer. The new governing International Executive Board of the UAW on Tuesday increase strike pay to $500 per week from $400 in response to continue inflation and ahead of the contract talks. It was a move UAW constitutional convention delegates in July had made, but later rescinded under much scrutiny.
In total, Stellantis says it will distribute $2.13 billion (2 billion euro) in performance-based benefits for 2021, a $213 million (200 million euro) increase year-over-year after the automaker surpassed its 2021 results.
"It is a fair recognition of the contribution of all Stellantis employees to make Stellantis win in a very demanding economic context," CEO Carlos Tavares said in a statement. "When the Company does well, all employees do well — that's what our pay-for-performance culture is all about."
Stellantis employees represented by the UAW will get the largest payouts compared to its Detroit competitors. General Motors Co. and Ford Motor Co. calculate profit-sharing based on North American earnings. Workers receive $1,000 for every $1 billion their employer earns.
GM will pay up to $12,750 to 42,300 eligible UAW hourly employees compared to $10,250 last year to 42,500 workers. The Detroit automaker made about $13 billion in operating income in North America.
Ford's payouts are the smallest. The checks are up to $9,176, compared to $7,377 payouts the year before, based on $9.2 billion in earnings before taxes and inflation in North America. Ford has 56,000 U.S. hourly employees, though temporary workers aren't eligible for the profit-sharing checks.
