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Chrysler Workers Get Early Bonus

Maker waives rules to honor worker “commitment.”

by on Dec.03, 2012

Chrysler CEO Sergio Marchionne with workers at the Belvedere (Illinois) Assembly Plant.

Chrysler workers are getting an unexpected holiday present. The automaker says it is paying a bonus they weren’t supposed to get until next year ahead of time.

Chrysler’s union-represented employees will receive the second half of the $3,500 ratification bonus they got for approving their latest contract on Dec. 21. Had Chrysler stuck to the original language in the contract it signed with the United Auto Workers union in 2011 workers would not have received payment until at least the first quarter of 2013.

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“This waiver of the four-quarter requirement is made in recognition of the tremendous contribution you have all made to the performance of our facilities and to the revival of Chrysler,” Sergio Marchionne, Chrysler Group Chairman and CEO, said in a letter to employees.

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Chrysler Profit Triggers First Profit-Sharing Checks Since 2005.

CEO Marchionne reveals Chrysler earnings offset Fiat deficit.

by on Feb.02, 2012

Chrysler workers will get $1,500 profit-sharing checks - and stand to earn another $1,750 if the maker can deliver four consecutive quarterly profits.

Chrysler workers have a variety of reasons to be pleased about the maker’s improving fortunes. They’re not only seeing thousands of jobs added but receiving their first profit-sharing checks since 2005 as a result of the maker landing in the black for the first time since 1997.

Meanwhile, Sergio Marchionne, the CEO of both Chrysler and Fiat, said the U.S. makers positive net offset a deficit at its Italian rival, which has been hammered by the European financial crisis – which has been particularly severe in Italy.

Marchionne wrote to U.S. hourly employees – who negotiated an improved profit-sharing formula as part of last-year’s new contract with the United Auto Workers Union, advising them they would get an average $1,500 each.

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“This is a reward that you have earned,” Marchionne proclaimed. “Your efforts rewrote the history that so many naysayers had forecast,” he added, a reference to the many outside skeptics who argued in favor of shutting down Chrysler rather than approving the maker’s 2009 federal bailout.

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GM To Give Hourly Workers $4,000 Bonuses

Falls short of Ford’s profit-sharing package.

by on Feb.14, 2011

GM CEO Akerson sending a kiss - and more than $4,000 in cash - to hourly workers.

General Motors CEO Dan Akerson has a big Valentine’s Day card coming in the mail for 45,000 workers.

Though they’ll still have to wait a bit for delivery, they can anticipate a profit-sharing bonus of at least $4,000 apiece, the executive announced today.  That’s more than double the previous record $1,775 profit-sharing payment workers received from GM – and that was back in 1999.

But the maker’s bonus still falls short of the $5,000 Ford Motor Co.’s hourly workers will be getting.  Ford decided to pay out significantly more than it was required to, in fact, under its agreement with the United Auto Workers Union.

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That reflects concerns Detroit automakers have about how workers will respond to the domestic industry’s fast-improvement health.  UAW members granted billions of dollars in concessions, first as part of their 2007 contracts with the U.S. Big Three, and then again to help the makers hobble through the economic downturn that saw auto sales plunge to their lowest levels in decades.

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Detroit Rewards Salaried Workers With Big Bonuses

But could that touch off trouble with hourly employees?

by on Feb.14, 2011

Workers on and off Detroit's assembly lines will be seeing bonuses this year.

Chrysler Group and General Motors are using bonuses to reward salaried employees who survived the long, bitter recession.

Almost 11,000 salaried workers at Chrysler will receive an average bonus of $10,000, according to various reports.  But the planned handout may touch off a rift in the company’s ranks, according to employees familiar with the plans, who indicate many employees believe the rewards are inherently unfair and biased against blue-collar workers.

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Meanwhile, GM’s 26,000 white-collar workers will also see performance bonuses this year, the automaker has acknowledged. While GM hasn’t released its final financial report for 2010, the maker also appears to pay its 53,000 U.S. unionized hourly employees profit-sharing checks amounting to $3,000.

Ford has been relatively cautious on salaried pay, limiting raises but promising merit bonuses equal to 10% of base pay to select salaried employees.

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Chrysler Reduces Net Loss, Posts Operating Profit for Q4

Declaring turnaround firmly underway, maker plans bonuses for both hourly and salaried workers.

by on Jan.31, 2011

"It would have been inexcusable" not to reward workers, said CEO Sergio Marchionne.

Showing further signs of a comeback from its 2009 bankruptcy, Chrysler significantly narrowed its net loss for the fourth quarter of 2010 while posting an operating profit for the final three months of the year.

The maker, meanwhile, said it expects to have its bottom line firmly back in the black for all of 2011 – with projected earnings of somewhere between $200 million and $500 million.  Strong earnings will be essential for the maker’s plan to stage an initial public offering sometime during the second half of the year.

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The good news will be shared with company workers, CEO Sergio Marchionne alerting workers in a company-wide e-mail that both salaried and hourly staff will receive “performance award payments.”

“I want to express my gratitude to everyone for their hard work,” said the chief executive’s note.  “You are the authors of this success.  I want to thank you for your dedication, your creativity and your willingness to embrace change without which these results would not have been achieved.”

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