As a result of General Motors' yearly gains in profits, about 45,000 U.S. hourly workers will receive a record-setting profit-sharing check.
GM said Tuesday that the 2024 pretax payout for its UAW-represented workforce will be up to $14,500 for those who qualify. That's a jump from the 2023 payout of $12,250. For 2022, GM's payout of was $12,750, the highest since 2016 when it was at $12,000 per employee.
"Our employees and owners are all sharing in our success," GM CEO Mary Barra said in a statement. "I’m pleased to share that our global salaried team has earned strong performance bonuses, and our U.S. hourly employees once again earned the industry’s highest profit sharing, totaling more than $640 million. That’s a record payout of up to $14,500 per person, equal to more than two months of extra pay on average for our UAW-represented team."
The GM-negotiated formula with the UAW for profit-sharing checks is $1,000 per every $1 billion in annual earnings before interest and taxes, or pretax profits for North America. For 2024, GM's North America pretax profit was $14.5 billion, up 18% from $12.3 billion a year earlier.
Hourly employees who accrued 1,850 or more compensated hours during 2024 will receive the full payout. Eligible workers typically receive their checks in late February.
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Ford Motor Co. reports its fourth-quarter and full-year results on Feb. 5. For 2023, Ford said about 58,000 U.S. hourly workers would receive profit-sharing checks averaging $10,416, up from 2022's payout of $9,176.