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Your elected bargaining committee made sure UAW members at GM would share in the recent success of the company in many ways, while at the same time keeping GM competitive. Lump-sum payments, a transparent profit-sharing formula and quality bonuses were UAW priorities we achieved.
UAW-represented workers, both Traditional and Entry Level, who are on the active roll on the effective date of the agreement will receivea lump-sum Settlement Bonus of $5,000 in the second pay period following official notification to the company of ratification. Workers on temporary layoff , on Family and Medical Leave or various other leaves of absence of not more than 90 days, and workers with retirements processed for an effective date of Oct. 1, 2011, are also eligible.
Eligible workers will also receive $1,000 lump-sum bonuses on the weeks ending June 10, 2012, June 9, 2013, and June, 8 2014.
(See Profit-Sharing Plan contract language, Exhibit F)
The fundamental principle underlying any profit-sharing plan is its ability to provide UAW-represented members at GM a real opportunity to “share in the upside” of the company’s success. This means sharing in a meaningful portion of the profits made on vehicles produced or sold in North America, while at the same time ensuring a high level of transparency and consistency in the profit-sharing calculations by closely linking them to the operating results that management utilizes and reports to its shareholders, the investment community and the Securities and Exchange Commission (SEC). To accomplish these goals, our current UAW-GM Profit Sharing Plan has been streamlined and strengthened.
In the chart below are some of the differences between the current profit-sharing program and the one your negotiators at GM crafted and won:
The following simplified payout table provides for increasing profit-sharing payouts as GM’s profi ts increase. Th e profit-sharing formula is based on hours worked, paid on a maximum of 1,850 compensated hours. For example, if GM reports North American profi ts of $3 billion, the maximum payout would be $3,000, but if the reported profits increase to $5 billion, the payout would likewise increase to $5,000.
Members who have more than 1,850 compensated hours will receive the maximum payout. Members who have less than 1,850 hours will receive a prorated payout based on the proportion of their compensated hours to 1,850.
This agreement also shows a strong ongoing commitment to protect the health care benefits of our retirees. The UAW and GM are in the process of addressing the company’s accounting, tax, legal and other concerns. Once these concerns are addressed, 10 percent of profit sharing will be diverted to the UAW Retiree Health Care Trust.
In the first half of 2011, GM has reported profi ts for North America of $3.5 billion. Based on the payout table, this level of profitability would equate to a payment of $3,500 for a member with at least 1,850 compensated hours. Based on how GM’s full year 2011 profits end up, the actual payment could be higher.
Meeting quality goals means a new $250 annual bonus
(See the contract language, pages 397-398.)
Your negotiating team emphasized the role our hourly members play in quality and how that helped turning the company around. Quality Performance Payments of $250 will be made to eligible workers each December if certain targets are met. The targets will be reviewed with UAW leadership and GM prior to their implementation.