A record profit-sharing payout for 52,000 General Motors U.S. employees is coming, and it’s because of record sales and earnings for the automaker. On Tuesday, GM announced that eligible employees will receive up to $12,000 in profit sharing. General Motors reported North America adjusted earnings of $12 billion in 2016, up from $11 billion in 2015.
According to the United Auto Workers/GM agreement, for every $1 billion the company makes in North America, hourly employees make $1,000 in profit sharing,
Ultimately, the amount workers receive depends on how many hours they’ve worked. In order to qualify for the full amount, an employee had to work 1,850 hours last year, and the amount will be prorated if less hours were worked.
A majority of more than 4,000 people who worked at the GM Lordstown Assembly Complex will receive a $12,000 from GM. On the fabrication side of the plant, a majority of 1,300 workers will receive a profit-share check. On the assembly side, a majority of 3,000 workers will also receive a profit-share check.
“It’s a morale booster,” said Robert Morales, president of United Auto Workers Local 1714, who represents the fabrication side of the plant. “It will give the members a sense of accomplishment for what was achieved by the company and the UAW. A lot of hard work and effort was put into today for it to be a success.”
Overall, GM’s yearly revenue was $166.4 billion, up 9.2 percent from 2015. Net income was $9.4 billion, down 2.7 percent from a year ago. Adjusted earnings were $12.5 billion, up 15.9 percent.
Glenn Johnson, president of UAW Local 1112, who represents the assembly side of the plant, weighed in: “It shows what a great job the company is doing. It’s a great American success story … each one of our team members from the shop floor all the way up plays an integral part in that success.”
In the fourth quarter, GM reported revenue of $43.9 billion, up 10.8 percent year-over-year. Net income was down 70.7 percent year-over-year to $1.8 billion for the quarter. Adjusted earnings were $2.4 billion during the fourth quarter, down 13.7 percent from last year.
The company reported record revenue of $119 billion for the year in North America. However, the company’s Europe and South America results were not as fantastic as in North America. In Europe, the company reported an adjusted income loss of $300 million and a loss of $400 million in South America in 2016.
Global sales came in at a record 10 million, up 1.2 percent from 2015.