General Motors Co. will deliver its largest profit-sharing payouts ever to employees next month ― up to $12,750 this year to about 42,300 eligible hourly workers, according to the company's financial results released Tuesday.
Employees will receive their share in their Feb. 24 paychecks. For every $1 billion GM makes in North America, the automaker's U.S. employees receive $1,000, according to the GM/United Auto Workers agreement. GM made about $13 billion in North America in 2022.
"We earned record EBIT-adjusted of $14.5 billion and our eligible U.S. hourly employees earned record profit sharing totaling $500 million, which brings the three-year total to $1.2 billion," GM CEO Mary Barra said in a letter to shareholders. "Their hard work helped us deliver industry-leading initial quality and meet strong customer demand."
The record payout comes after the UAW negotiated removing the previous $12,000 cap on profit sharing during the 2019 negotiations with GM. It also comes despite stiffening economic headwinds last year, namely rising interest rates and chronic inventory problems caused by shortages of semiconductor chips.
"Our members are essential to the success of General Motors. UAW members bring skill, experience, and dedication to the job every day and are well deserving of today's news," UAW Vice President Mike Booth said in a statement. "While we celebrate today, we know that there are challenges ahead. We will continue to fight for fairness and equity for all UAW-GM members."
Last year, GM employees could have received up to $10,250 in profit sharing.
