Chrysler's nearly 400 workers at its Dundee engine plant will receive the company’s full profit-sharing payments after all. Today, most of Chrysler’s hourly workers received an average profit-sharing check of about $1,500.However, payments for workers at the Global Engine Manufacturing Alliance in Dundee plant were held up because of a unique issue in a local contract between UAW Local 723 and Chrysler.
Under that contract, which was separate from the UAW’s national contract, workers at the plant had already received three quarterly performance payments in 2011 totaling about $950 per worker.
Then, members of UAW Local 723 voted last fall to join the UAW’s national agreement with the automaker.When Chrysler earned its first annual profit in six years, the question became whether or not the workers in Dundee should receive a pro-rated profit-sharing check for the final quarter of the year or the full profit-sharing award.
“We are going to get it,” Tom Zimmerman, chairman of UAW Local 723 said today of the full profit-sharing award. “The International UAW came through for us.” Members were informed of the decision on Thursday, Zimmerman said today.
Zimmerman said members of UAW 723 will receive their bonus on Feb. 24. That date was picked so that workers would have time to decide what portion of their profit-sharing awards they want to divert into their 401K savings plan. Chrysler reported a profit of $183 million last week for 2011, its first profitable year since 2005.
The company’s profit-sharing formula is based on Chrysler’s modified operating profit in North America. The last time Chrysler’s hourly workers received a profit-sharing check was in 2005, when the average payment was $650.
Last year Chrysler’s hourly workers received a performance bonus of about $750 even though the company did not earn a profit for 2010.
Contact Brent Snavely: 313-222-6512 or
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
{jcomments off}
