New Performance, Quality and Ratification bonuses

Chrysler workers “share in the upside” with new profit sharing plan
The fundamental principle underlying any profit sharing plan is its ability to provide UAW-represented members at Chrysler with a real opportunity to “share in the upside” of Chrysler’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 the investment community and the Securities and Exchange Commission (SEC).

To accomplish these goals, our current UAW-Chrysler Profit Sharing Plan has been streamlined and strengthened. In the chart are some of the differences between the current profit sharing program and the one your negotiators at Chrysler crafted and won:

Currently, Chrysler’s only publicly reported profit figure is worldwide profit. Eighty-five percent of Chrysler’s profits come from North America, so our new profit sharing formula simply takes the publicly reported profit figure and multiplies it by 85 percent. For example, if Chrysler reports worldwide profits of $3 billion, the North American profit figure for profit sharing would be $2.55 billion ($3 billion x 85 percent). In this case, the maximum payout would be $2,500. The profit sharing formula is based on hours worked, paid on a maximum of 1,850 compensated hours.
The following simplified payout table provides for increasing profit-sharing payouts as Chrysler’s profits derived from North America increase:

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 on-going commitment to protect the healthcare benefits of our retirees. The UAW and Chrysler 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 Medical Benefits Trust.

Performance Bonus
Our Negotiators won performance bonuses of $500 for each year of the agreement. The $500 will be paid to each eligible employee in June of each year of the agreement. Additionally, employees at locations that have achieved or maintained Bronze, Silver,Gold or World Class status as of their most recent audit (30 days or more prior to the payment date will have an Audit Score Adjustment Factor applied to their Performance Bonus payment - see table below).