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GM UAW hourly workers could see $4,000 in bonuses

Last week, TorqueNews.com brought you the news that General Motors plans to pay profit sharing bonuses to their hourly union autoworkers (UAW) that could exceed the highest profit-sharing bonuses in the company history and if a new report proves to be true, those bonuses could actually be even higher – with an average of $4,000 paid to these hourly workers.
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The original rumors suggested that GM would pay their UAW hourly workers would receive a bonus of roughly $3,000 with that actual amount being less or more depending on time spent with the company, hourly pay rate, etc. but Bloomberg is now reporting that the average bonus could go as high as $4,000. This payout is more than double the previous best profit-sharing payout in the company’s history but GM’s generosity does comes with a bit of a catch.

Like Ford and Chrysler, General Motors is currently involved in contract talks with the UAW leaders and as part of their revisions GM hopes to eliminate “lockstep” raises (annual raises added regardless of the company’s success in a given year), instead giving employees bonuses based on performance rather than raises based on nothing but a new fiscal year. GM’s hope is that in the wake of this massive, record-setting profit bonus, the UAW negotiators will be more likely to accept GM’s replacement of annual raises with profit-based bonuses.

The exact amount to be paid to the 45,000 hourly union autoworkers will be announced in General Motors’ earnings release – expected to be released later this month. Regardless of the final dollar value average of the profit-sharing bonus paid to hourly workers, there is no guarantee that the UAW will approve GM’s plan of eliminating lockstep raises but with the news that some salaried employees (executives) from GM could see bonuses easily eclipsing the $10,000 mark, the General may have a hard time convincing the UAW to back down from any of their demands.

TorqueNews.com will continue following this story, bringing you more information as it becomes available!

Source: Bloomberg

Other GM News:
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GM UAW workers could get $3,000+ in profit sharing bonuses
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