General Motors employees are set to receive the biggest profit-sharing payments in company history in February.
Through an agreement between General Motors and the United Auto Workers (UAW) union, General Motors employees receive $1,000 in profit-sharing payments for every $1 billion General Motors makes in North America.
Employees of the Detroit-based automotive manufacturer will see payments up to $12,750 this year, which the company announced on its fourth-quarter earnings call on Tuesday. The max payout last year was $10,250, according to The Detroit News.
The profit-sharing payments are open to roughly 42,300 eligible hourly workers and are set to be paid on February 24.
“We earned [a] record EBIT-adjusted $14.5 billion and our eligible U.S. hourly employees earned record profit sharing totaling $500 million, which brings the three-year total to $1.2 billion,” General Motors CEO Mary Barra wrote in a letter to shareholders.
“Their hard work helped us deliver industry-leading initial quality and meet strong customer demand.”
As previously reported by The Dallas Express, General Motors recently overtook Toyota to regain the title of the world’s largest automaker.
In 2019, GM workers went on a 40-day strike. The work-stoppage ultimately concluded when the UAW negotiated with General Motors to remove a $12,000 limit on profit sharing, according to The Detroit News. The strike cost General Motors approximately $4 billion, according to CNBC.
“Our members are essential to the success of General Motors. UAW members bring skill, experience, and dedication to the job every day and are well deserving of today’s news,” UAW Vice President Mike Booth said. “While we celebrate today, we know that there are challenges ahead. We will continue to fight for fairness and equity for all UAW-GM members.”
General Motors’ share prices raced higher after reporting record earnings on Tuesday. Shares gained over 8% following the company’s fourth-quarter results that beat earnings estimates by $600 million.
“GM led the U.S. industry in total sales and delivered the largest year-over-year increase in market share of any OEM, thanks to strong demand for our products and improved supply chain conditions,” Barra said.
