General Motors hourly workers are about to receive a hefty check.
According to The Detroit Free Press, union-represented GM workers will receive profit-sharing checks of $11,750 after the company made $12.8 billion in pretax profits last year.
The company made $12.8 billion on $145.6 billion revenue in 2017. Its pretax profits in North America totaled about $11.9 billion.
“Today’s General Motors profit sharing, established under the 2015 contract negotiations, recognizes that UAW GM members’ hard work is an essential part of General Motors sales and profits,” UAW vice president Cindy Estrada said in a statement to The Detroit News. “UAW members at GM negotiated a well-deserved share in the profits of their hard work and sacrifice.”
Lower-level employees often receive less of the profit than upper-level executives, according to The Balance. Employees receive the money regardless of performance, however.
Last year, about 52,000 workers received similar profit-sharing checks of $12,000. The company has since sold its European division and announced plans to pull out of other parts of the world, like Africa and India.
However, GM’s profit-sharing checks are greater than Ford or Fiat Chrysler. Ford will give its 54,000 workers about $7,500, while Fiat Chrysler will give its 40,000 workers close to $5,500 each (in addition to the $2,000 bonuses that it plans to pay its employees after the tax bill change from Congress).
Several other companies offered their employees bonuses after the tax cut. Starbucks decided to boost hourly pay and provide employees with stock bonuses, according to USA Today.
Wal-Mart also raised its employee’s wages and gave bonuses of up to $1,000 because of the tax cut, according to CBS News. However, at the same time, Wal-Mart’s membership warehouse Sam’s Club announced it would be closing dozens of stores.
Source:: Deseret News – U.S. & World News