Employees of Stellantis NV represented by the United Auto Workers could see profit sharing checks of $13,860, though some could be more and some less based on hours worked, the automaker said Thursday.
There are approximately 38,000 eligible workers for the checks. The payout is a 6.1% decrease from last year’s $14,760 with 40,500 eligible employees.
The announcement was a part of the automaker’s annual financial results based on a 15.4% adjusted operating income margin last year in North America. That is down from 16.4% in 2022 from issues with the automaker’s inventory mix and a less than $800 million lost profit from strikes by the United Auto Workers and Canadian union Unifor.
This year’s payouts should appear in eligible workers’ Feb. 29 paychecks, according to Stellantis.
“This profit sharing payment recognizes the efforts of our UAW-represented workforce who helped deliver the strong financial results Stellantis released today,” Carlos Zarlenga, Stellantis’ new chief operating office in North America, said in a statement. “As one of the highest payments in the company’s history, it clearly demonstrates that we value our employees’ contributions and are committed to rewarding them when their performance supports the company’s success.”
The profit sharing was calculated based on Stellantis’ 2019 labor agreement with the UAW, according to the automaker. Under those terms, the company had paid profit sharing exceeding a total of $51,300 per employee over the years.
Lower paid supplemental employees, unlike their temporary-worker counterparts at General Motors Co. and Ford Motor Co., aren’t 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.
UAW-represented 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 $13,860, while employees, for example, with more absences or at plants with more downtime may not get as hefty a payout.
The union last year highlighted gains around profit sharing in its 2023 contract. Under those terms that don’t apply to Thursday’s announced payments, workers whose employment ends after Dec. 31 and before the profit-sharing checks go out still are eligible for the payout. Additionally, it negotiated a “performance sharing” payout for supplemental workers that is based on the profit-sharing formula.
In total, Stellantis says it will distribute roughly $2 billion (1.9 billion euro) in profit sharing and variable bonuses globally for 2023, after the automaker posted a record net revenue of $203.4 billion (189.5 billion euro) and record net profit of $20 billion (18.6 billion euro). Stellantis last year said it was paying 2 billion euro in performance-based benefits.
“These profit sharing and variable payout programs are more than a reflection of our employees’ performance and achievements,” Stellantis CEO Carlos Tavares said in a statement, “they are the fair recognition of their commitment to succeed as one team.”
The automaker said it also will expand its share purchase plan to 242,000 employees worldwide in 2024. The company last year launched a pilot version in Italy and France, extending a $1,073 (1,000 euro) matching contribution.
Meanwhile, Stellantis proposed a dividend to shareholders of $1.66 (1.55 euro) per share, pending their approval. It also announced an open market share buyback program this year of $3.22 bullion (3 billion euro).
Stellantis employees represented by the UAW could see the largest payouts compared to its Detroit competitors. General Motors Co. will pay up to $12,250 to about 45,000 eligible hourly workers. The payout was based on the Detroit automaker’s about $12.3 billion earnings last year in North America.
Ford Motor Co.’s payouts clocked in at $10,416, though they also can be lower or higher based on hours worked. The result is according to last year’s $10.4 billion in global adjusted operating income. Approximately 58,000 workers are eligible.
bnoble@detroitnews.com
Twitter: @BreanaCNoble
