by In a groundbreaking announcement, General Motors (GM) revealed that its UAW-represented workforce will receive record-setting profit-sharing checks of up to $14,500 in 2024. This news comes as a result of GM’s impressive yearly gains in profits, marking a significant milestone for the automaker and its employees. This blog explores the details of GM’s profit-sharing program, its impact on employees, and how it compares to similar initiatives at other automakers.
What is GM’s Profit-Sharing Checks Program?
GM’s profit-sharing program is designed to reward its UAW-represented hourly employees based on the company’s North American pretax profits. The formula for calculating the payout is straightforward: employees receive $1,000 for every $1 billion in annual earnings before interest and taxes (EBIT). For 2024, GM reported an impressive $14.5 billion in North American pretax profits, an 18% increase from the previous year’s $12.3 billion. This translates to a payout of $14,500 for eligible employees.
Record Payouts Reflect GM’s Strong Performance
The 2024 payout of $14,500 marks a significant jump from previous years. In 2023, eligible employees received $12,750, and in 2022, the amount was $12,250. This upward trend underscores GM’s consistent financial growth and commitment to sharing its success with its workforce.
According to GM CEO Mary Barra, “Our employees and owners are all sharing in our success. 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.” Barra’s statement highlights GM’s dedication to rewarding employees for their contributions to the company’s success.
Eligibility and Distribution
Hourly employees who accrued 1,850 or more compensated hours during 2024 are eligible to receive the full payout of $14,500. Those who worked fewer hours will receive prorated amounts. Typically, these profit-sharing checks are distributed in late February, providing a substantial financial boost for employees early in the year.
The new national agreement negotiated by the United Auto Workers (UAW) union in 2023 expanded eligibility for profit-sharing checks. Now, GM’s union-represented temporary employees and workers at GM’s battery facilities are also included in the program. This inclusion reflects the evolving dynamics of the automotive industry and the growing recognition of all contributors to GM’s success.
Comparisons with Other Automakers
GM’s profit-sharing payouts are among the most generous in the industry, setting a benchmark for competitors. For comparison:
- Ford Motor Co.: Ford’s UAW-represented workers received an average profit-sharing check of $10,416 for 2023, up from $9,176 in 2022. Ford’s fourth-quarter and full-year results for 2024 are expected on February 5, which will provide further insights into its profit-sharing program.
- Stellantis: Known for brands like Chrysler, Dodge, Jeep, and Ram, Stellantis’ profit-sharing payouts for 2023 averaged $13,860, slightly lower than the previous year’s $14,760. Stellantis’ full-year results for 2024 are expected on February 26.
Despite these competitive payouts, GM’s $14,500 check stands out as the highest in the industry, highlighting the company’s exceptional financial performance and commitment to its workforce.
Impact on Employees and Communities
For many GM employees, the profit-sharing checks represent more than just financial rewards; they are a testament to their hard work and dedication. The average payout is equivalent to more than two months of extra pay, providing significant financial relief and opportunities for workers and their families.
Beyond individual benefits, these payouts have a ripple effect on local communities. As employees spend their profit-sharing bonuses, they contribute to the economy, supporting local businesses and services. This cyclical benefit underscores the broader impact of GM’s success.
A Milestone in GM’s Profit-Sharing History
The record-setting $14,500 payout is not just a financial achievement but a milestone in GM’s profit-sharing history. It reflects the company’s resilience, adaptability, and ability to thrive in a competitive industry. From navigating supply chain challenges to investing in electric vehicle production, GM’s strategic decisions have positioned it as a leader in the automotive sector.
The Road Ahead for GM
Looking ahead, GM’s continued focus on innovation, sustainability, and workforce engagement will be crucial in maintaining its competitive edge. The inclusion of temporary employees and battery facility workers in the profit-sharing program is a step towards fostering a more inclusive workplace culture.
Additionally, GM’s investments in electric vehicles and autonomous technology indicate a forward-thinking approach that aligns with evolving market trends. As the company continues to grow, its profit-sharing program will likely remain a key motivator for employees and a testament to GM’s commitment to sharing its success.
Conclusion
The record-setting profit-sharing checks for GM’s UAW-represented workers in 2024 highlight the company’s remarkable financial performance and dedication to rewarding its employees. With payouts of up to $14,500, GM has set a new standard in the automotive industry, showcasing the power of collaboration and shared success. As GM continues to innovate and expand, its profit-sharing program will undoubtedly play a pivotal role in driving employee satisfaction and sustaining its competitive edge.
