Cars and Drivers
Chrysler to Make Profit-Sharing Payments to 40,000 Workers
Published:
Last Updated:
United Autoworkers (UAW) union members who work for Fiat Chrysler Automobiles N.V. (NYSE: FCAU) will be getting profit-sharing checks in amounts of up to $4,000 as a result of the company’s 2015 financial performance. That’s an increase of 45% to the 2014 payment of $2,750, according to the company.
The terms of the profit-sharing agreement were negotiated in the collective bargaining agreement Chrysler and the union signed late last year. The UAW also signed new four-year contracts with Ford Motor Co. (NYSE: F) and General Motors Co. (NYSE: GM), but neither has announced 2015 profit-sharing payment amounts yet.
In late November 2015, Ford said it would take a charge of $600 million to pay for the new contract with the UAW. The expense was primarily associated with the contract ratification bonus that Ford agreed to pay if the union agreed to the new contract. Some 53,000 Ford workers received a $10,000 signing bonus, which includes a $1,500 advance payment on 2016 profit-sharing. According to Ford, the ratification and lump sum bonus payments only increase labor costs by less than 1.5% a year, which is less than the forecast rate of inflation over the four-year contract term.
Chrysler’s stock traded down about 0.5% in the early afternoon Wednesday, at $7.57 in a 52-week range of $6.60 to $11.24.
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.