Stellantis Announces 2023 Profit Sharing For UAW Workers

Stellantis revealed its plans to distribute a substantial profit-sharing amount to its United Auto Workers (UAW)-represented employees for their contributions to the company’s successful 2023 North American financial performance.

This announcement comes as a token of appreciation for the dedication and hard work of the UAW-represented workforce, totaling around 38,000 individuals. The actual payments, based on individual compensated hours, will roll out on February 29, 2024.

“This profit sharing payment recognizes the efforts of our UAW-represented workforce who helped deliver the strong financial results Stellantis released today,” said Carlos Zarlenga, COO, Stellantis North America. “As one of the highest payments in the company’s history, it clearly demonstrates that we value our employees’ contributions and are committed to rewarding them when their performance supports the company’s success.”  

This payout marks one of the highest in the company’s history and adds to the cumulative profit sharing for U.S. bargaining unit employees, which has now exceeded $51,300 since the 2019 labor agreement.

The calculation of the 2023 profit sharing payment was anchored in the terms negotiated under the 2019 UAW-FCA Collective Bargaining Agreement. It was based on the year-end Adjusted EBIT margin of the North American region, as reported in Stellantis N.V.’s year-end financial results.

While this news brings a sense of appreciation and financial relief to many Stellantis workers, the company is also navigating through significant changes. With a pivot towards an electric future, Stellantis has announced plans to streamline its workforce. This includes offering voluntary buyout packages to thousands of salaried employees in the United States.

In November 2023, Stellantis announced voluntary buyout packages for 6,400 salaried employees, following an earlier announcement in April about similar packages for 33,500 US-based employees. This restructuring effort aligns with Stellantis’ strategy to adapt to the evolving automotive landscape, emphasizing electric vehicles (EVs) and sustainable mobility solutions.

While the profit-sharing announcement serves as a morale booster for Stellantis employees, the broader industry shift towards electric vehicles underscores the need for companies to adapt and restructure to remain competitive in the rapidly evolving automotive market.