Approximately 47,000 eligible U.S. hourly employees will receive average payments of approximately $8,800 each on March 13. Individual profit sharing payments may be higher or lower based on employee compensated hours, according to officials.
DEARBORN, MI- United Auto Workers employees with Ford Motor Co. will receive record profit-sharing checks as part of the automaker’s $8.8 billion profit last year in North America.
Approximately 47,000 eligible U.S. hourly employees will receive average payments of approximately $8,800 each on March 13. Individual profit sharing payments may be higher or lower based on employee compensated hours, according to officials.
The payments are part of the union’s contract with Ford, which was ratified in 2011. The sides opted for profit sharing and jobs rather than any substantial annual pay raises.
When ratifying the four-year contract, UAW President Bob King continuously preached the union should not fight against the automakers, as it had in the past, but work together and share in the company’s success.
The previous profit-sharing payout record for Ford was in 2012, when eligible employees received an average of $8,300.
The Ford logo is seen on the automaker's headquarters in this Oct. 26, 2009 file photo taken in Dearborn, Mich.The payments were announced by the Dearborn-based automaker in conjunction with its 2013 fourth-quarter and full-year results of $3 billion and $7.2 billion, respectively.
Ford’s full-year revenue also increased 10 percent to $146.9 billion in 2013.
North America remained Ford’s most profitable market in 2013, posting an $8.8 billion pre-tax profit, a $438 million increase compared to 2012 and a record since 2000.
Outside of North America, Ford’s Asia-Pacific-Africa operations led the way with a $415 million profit compared to a $77 million loss in 2012, followed by South America incurring a $34 million loss and Europe recording a $1.6 billion loss for the year. Ford Credit reported solid pre-tax results of nearly $1.8 billion, a $59 million improvement.