The benefits of consumers’ increasing demand for vehicles in America, auto workers will receive the dues in a profit-sharing bonus. Auto employees are estimated to get the largest bonus checks yet.
The fourth quarter report for the big three reported that consumer’s dependence on light-trucks is part of the profit increase. However, the bonuses aren’t just coming due to the increase in sales. Recently Ford and GM announced that they would be bringing in mass amounts of jobs to the U.S. Fiat Chrysler also put in that it would spend over $1 billion in remodeling two of its factories which would add more than 2,000 positions.
President Trump has been working with the Big Three, and they seem more than eager to help the new president bring more jobs to the U.S. Trump expressed his view on lightning corporate taxes and other regulations that make things harder for businesses. Even Chief Executive of Fiat Chrysler, Sergio Marchionne, said, “The policy taken by Mr. Trump is something we appreciate.”
Even though factory workers will be compensated, they aren’t the only ones reaping the benefit of the auto companies success. As stock prices increase, shareholders are enjoying the dividends and buybacks.
For this profit sharing, Fiat Chrysler employees are looking at an estimated $5,000 which is the highest its union workers has seen since its bankruptcy back in 2009.
Ford, on the other hand, is paying its employees $9,000. That’s one of the highest profit-sharing the company has seen.
GM has yet to report its numbers until February 7th, but it’s estimated that the company could top its figure of $11,000 that it paid out last year.
Since both GM and Chrysler filed for bankruptcy back in 2009, neither of the automaker’s employees have received a pay raise. However, larger profit-sharing figures are amongst the topics negotiated when contracts are signed every four years since back in 2007. Yet there wasn’t any sign of compensation until years after.
In 2010 GM pulled itself out of its six-year annual loss, its workers have made $3 an hour in yearly profit-sharing which is an estimated 10 percent of their hourly wages. This calculation is from North American earnings and is much higher than that of Ford and GM.
Although the idea of a few thousand in a profit-sharing bonus is great news to some, other employees aren’t too enthused. Employees who don’t work enough overtime hours, won’t receive a full share of the bonus. Other employees want to see their hourly wages go up rather than receiving the profit-sharing.
When the CEOs of the Big Three met with Trump recently, they all left optimistic that each company would be adding more jobs. Fiat is already contemplating abandoning its passenger-car line in favor of producing more Ram pickups which are currently imported from Mexico.
Even as its revenue dropped, Fiat still managed to earn an increased 15 percent of its North American operating profit, bringing it to EUR 5.1 billion ($5.45 billion). That figure almost comes close to Ford and GM. Mr. Marchionne reported that Fiat’s net profit was an estimated EUR 409 million.
When it comes to Ford, the automaker reported its net loss as $800 million this fourth quarter which compares to the $1.9 billion it reported in net income it brought in toward the end of 2015.