Ford hourly workers to get $9K in profit sharing despite headwinds
Published in Business News
Ford Motor Co. will pay profit-sharing bonuses of up to $9,176 to hourly autoworkers in the U.S. for 2022, the automaker said Thursday.
The Dearborn automaker employs about 56,000 hourly workers in the U.S. Profit-sharing checks to eligible workers will be distributed in early March.
Under the automaker's contract with the United Auto Workers, the payouts are based on pretax earnings the company earned in North America for the previous calendar year. For every $1 billion in adjusted earnings before interest and taxes, eligible UAW members at Ford plants and other facilities receive $1,000. In North America, Ford deliver pre-tax profit of $9.2 billion in 2022.
"UAW Ford members play a key role in the success of the company through their expertise, extraordinary efforts, and commitment to the jobs they perform each and every day," UAW Vice President Chuck Browning, head of the union's Ford Department, said in a statement.
Last year, eligible hourly workers at Ford received up to $7,377 in profit-sharing based on 2021 results. That average payout was more than double the amount from the year before.
Ford on Thursday posted a $2 billion net loss for last year, down from 2021's $17.9 billion in profits that had been bolstered by gains on the automaker's investment in electric-vehicle startup Rivian Automotive Inc.
The Dearborn automaker's 2022 earnings were hit by a $7.4 billion mark-to-market net loss in Rivian and a $2.7 billion impairment from its investment in autonomous company Argo AI, which was dissolved into Ford and partner Volkswagen AG.
Earlier this week, crosstown rival General Motors Co. confirmed it would pay its 42,300 eligible hourly workers a record $12,750 in profit sharing. The payouts will total $500 million, the Detroit automaker said, bringing the three-year total to $1.2 billion. Last year, GM workers received up to $10,250 in profit-sharing.
The profit-sharing checks will be paid out as autoworkers, like other U.S. workers, face high inflation, rising interest rates and a possible recession. Stellantis NV reports its financial results and profit sharing for U.S. employees on Feb. 22.
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