Stellantis NV employees, represented by the United Auto Workers, could receive profit-sharing checks of $13,860, with some more and others less depending on hours worked, the automaker said Thursday.
About 38,000 employees are eligible for the checks. With 40,500 eligible employees, the payout represents a 6.1% decrease compared to $14,760 last year.
The announcement was part of the automaker's annual financial results, which were based on an adjusted operating profit margin of 15.4% last year in North America. That's down from 16.4% in 2022, due to problems with the automaker's inventory levels and a profit loss of less than $800 million due to strikes by the United Auto Workers and Canadian union Unifor.
Stellantis said this year's payouts should appear in eligible workers' paychecks dated Feb. 29.
“This profit sharing recognizes the efforts of our UAW-represented workforce, which contributed to the strong financial results that Stellantis reported 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.”
According to the automaker, profit sharing was calculated based on Stellantis' 2019 employment agreement with the UAW. Under these conditions, the company had paid a total profit share of more than $51,300 per employee over the years.
Unlike their temporary colleagues at General Motors Co. and Ford Motor Co., lower-paid additional workers are not entitled to this year's profit sharing. Before the new contract last year, adjuncts made up 12% of Stellantis' 43,000 unionized U.S. workforce, although the UAW prevailed on making those workers full-time after nine months of employment.
UAW-represented employees in North America receive up to $900 per 1% of profit margin based on individually compensated hours in the past year. This means that depending on how many employees worked, some may receive more than $13,860, while employees with more absences or in companies with more downtime, for example, may not receive as large a payout.
The union highlighted the benefits of profit sharing in its 2023 contract last year. Under conditions that do not apply to the payments announced Thursday, workers whose employment ends after Dec. 31 and before the profit-sharing checks expire will still be eligible to receive the payout. In addition, a “performance-sharing” payout for additional workers was negotiated, based on the profit-sharing formula.
In total, Stellantis says it will distribute around $2 billion (1.9 billion euros) in profit sharing and variable bonuses worldwide in 2023 after the automaker reported record net sales of $203.4 billion (189.5 billion euros). Euro) and posted a record net profit of 20 billion US dollars (18.6 billion euros). Last year, Stellantis said it would pay 2 billion euros in performance-related benefits.
“These profit-sharing and variable payout programs not only reflect the performance and achievements of our employees,” Stellantis CEO Carlos Tavares said in a statement, “they are fair recognition of their commitment to succeed as a team.”
The automaker said it would expand its stock purchase plan to 242,000 employees worldwide in 2024. The company launched a pilot in Italy and France last year and provided a matching contribution of $1,073 (1,000 euros).
Meanwhile, Stellantis proposed a dividend of $1.66 (1.55 euros) per share to shareholders, subject to their approval. The company also announced a $3.22 (€3 billion) open market share buyback program this year.
The Stellantis employees represented by the UAW could see the highest payouts compared to their 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 North American profit of about $12.3 billion last year.
Ford Motor Co.'s payouts were $10,416, but they could be lower or higher depending on hours worked. The result is in line with last year's global adjusted operating income of $10.4 billion. Around 58,000 employees are eligible.
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