Stellantis UAW Workers See Sharp Drop in Profit Sharing Checks

Stellantis has announced that United Auto Workers (UAW) employees will receive profit-sharing checks of $3,780 this year — a sharp 73% decrease from last year’s $13,860 payouts. About 38,800 workers are eligible for the checks, with some receiving more or less based on hours worked.

The automaker revealed these numbers as part of its annual financial results released on Wednesday. Stellantis reported a 4.2% adjusted operating income margin in North America for the past year, a steep drop from 15.4% the previous year. This decline in profit margin follows major challenges in the region, including a significant drop in vehicle sales.

Stellantis confirmed that the profit-sharing checks will be distributed on March 7. The amount each worker receives is based on Stellantis’ 2023 labor agreement with the UAW, which grants union-represented employees $900 per 1% of the North American profit margin. Final payouts depend on the number of hours worked by each employee throughout the year.

One key change in the 2023 labor agreement ensures that employees who left the company after Dec. 31 but before the profit-sharing checks are issued are still eligible to receive their payouts. Additionally, supplemental workers will also receive a “performance sharing” payout based on the same profit-sharing formula, though their numbers are fewer compared to the time the contract was initially negotiated.

In comparison, Stellantis’ rivals reported much higher payouts for their UAW workers. General Motors (GM) announced record profit-sharing checks of up to $14,500 for 48,000 eligible workers, while Ford said its 57,000 eligible workers would receive about $10,208 in bonuses — slightly below last year’s amount.

This stark contrast highlights Stellantis’ financial struggles and the challenges ahead for the automaker as it navigates a tough market and declining vehicle sales.