GM Outlines Profit-Sharing Payments
DETROIT—General Motors Co. said Monday that its 45,000 U.S. hourly workers will get at least $4,000 each under a profit-sharing agreement with the United Auto Workers that is paying off amid the auto maker's return to profitability.
GM expects to disclose the exact amount later this month when the company posts financial results for the fourth quarter, a company spokeswoman said. It will be the company's largest profit-sharing payout to paid. The most GM paid previously was $1,775 in 1999, reported The Wall Street Journal.
The auto maker also is giving out a bonus to its salaried work force that for most employees will range from 4 percent to 16 percent of their annual salary, the company said.
Ford Motor Co. last month paid its U.S. hourly workers $5,000 in profit sharing, more than the company was required to pay under the profit-sharing formula in its contract with the UAW. Chrysler Group LLC didn't earn money in 2010 but still paid its hourly workers $750 each in recognition of their contributions to the Auburn Hills, Mich., company's progress toward recovery last year.
The auto maker is on track to post its first annual profit since 2004 when it reports financial results for 2010 later this month. GM earned $4.2 billion through September and is expected to post a profit of about $1 billion for its fourth quarter.
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