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UAW Lordstown workers to receive up to $7,500 in profit sharing

Published: 2/14/14 @ 12:09


RELATED: GM recalls nearly 780K compact cars

By Tom McParland

tmcparland@vindy.com

YOUNGSTOWN

United Auto Workers employees at General Motors plants will receive up to $7,500 in profit- sharing payouts later this month, according to GM and UAW representatives.

Regular full-time employees who worked 1,850 compensated hours last year will receive the maximum amount, while workers who logged less than 1,850 hours will receive a prorated sum.

GM has had forms of profit sharing in place since the 1980s, said Bill Grotz, GM manager of manufacturing and labor communications.

But in recent years, the payout has been determined by a formula that was first negotiated between GM and the UAW in 2009 as a part of GM’s restructuring agreement. It was renewed in UAW’s most- recent contract, negotiated with GM in 2011.

Temporary workers — those brought in for short-term projects such as new product launches and production surges — are not eligible for the bonus, Grotz said.

UAW Local 1112 President Glenn Johnson, who represents workers at the Lordstown assembly plant, said the payout reflects a strong year of production and sales for GM.

“The company had a great year,” he said. “We’re happy that we work for them, and we’re putting out some great products.”

The payout ebbs and flows, but profit-sharing bonuses generally have been lower in the past, Johnson said.

Earlier this month, GM reported $3.8 billion in net income for 2013, down from $4.9 billion the previous year. Meanwhile, the Lordstown-built Chevrolet Cruze surged last year, with sales up 4.4 percent from 2012.

Johnson said employees will receive their profit-sharing payout with their last paychecks in February.

GM may be looking to increase production at Lordstown next month.

Johnson said management tentatively has scheduled three Saturdays of production for all three shifts, but the dates are “always subject to change, based on the needs of the company.”

Union and plant officials also confirmed Thursday that the weeks of June 30 and July 7 have been designated as the annual vacation shutdown weeks at the Lordstown facility.

Workers are required to use 72 hours of their vacation during those two weeks, but they may still use vacation time outside of that window.


Comments


Posted by mabell (anonymous) on February 14, 2014 at 8:37 a.m.

Taxpayers lost 10 billion dollars in GM stocks,and they get a bonus......What an upside down country we live in.
Evil only happens if good people let it happen....wake up people.That goes for the local issues also.Cmon.....Think!!


Posted by billdog1 (anonymous) on February 14, 2014 at 10:42 a.m.

Oh, the humanity, those (Evil???) people getting a bonus while Mabell doesn't. Oh, the humanity.


Posted by DwightK (anonymous) on February 14, 2014 at 1:20 p.m.

Under every article there's at least one person complaining. This many workers getting this much bonus money is a good thing for the businesses of the Mahoning Valley. If you want to complain about money being lost, look at the salaries of the corporate officers.


Posted by walter_sobchak (anonymous) on February 14, 2014 at 1:33 p.m.

Nobody is calling the GM workers evil. The situation, however, is upside-down. many workers, such as myself, work for good companies that keep their eye on the product produced, watch the books, work diligently and don't take any government handouts. We have operated under tight rules, sacrificing, some of us working extra (as I do since I am salary). Now, we take old GM, horribly run with poor management and little leadership, making a crap product, losing money because they were so badly operated. They get bailed out with government loans on one hand and then the government takes a huge ownership in the company by buying stock. My God, the Obama administration fired and hired the CEO and other management! How many shareholders and bondholders got shafted when the old GM was written off to make a new GM that was nothing more than a payoff for to the UAW for supporting the messiah. Of course, this was sold as necessary to keep GM from going bankrupt, which they ultimately did anyway. My brother-in-law, a GM retiree, lost a lot of money when his stock went worthless. The problem is that there are rules, smokey...and the government gets to change the rules as they see fit while the ordinary people get screwed. Too big to fail means you're too big to exist, IMHO.

That's it, in a nutshell. I am happy that GM Lordstown still exists and they appear to be making a good product while operating within budgets. Good for them but the hell with all the others that were playing by the rules. I will NEVER buy a GM product again. In fact, we have purchased two Fords in the last year and love them. I only used to drive a Chevy but fuggitaboutit, now.


Posted by dontbeafool (anonymous) on February 14, 2014 at 2:02 p.m.

A little story on CEO pay. I'm glad at least some middle class workers are getting some $$$.
Former CEO: Executive Pay Is 'A Fraud'
You can blame the stagnant economy on a "handful of women and men" who run the country's largest companies. And that's according to a man who used to be one of those people.
Executive pay has gotten so out of hand, former AT&T Broadband CEO Leo Hindery told HuffPost Live on Thursday, that it has caused a "structural breakdown of the meritocracy of our nation."
Hindery pointed out that, even as CEO pay has skyrocketed in recent decades, it has not "trickled down" to workers, who must increasingly borrow money to finance their spending. That dynamic helped set the stage for the most recent recession and helps explain today's sluggish recovery.
Fortune 500 CEOs now make more than 200 times what their average workers make, according to Bloomberg data. That ratio has increased by 1,000 percent since 1950. As CEO pay has exploded, worker pay has stagnated: Workers have not had a real cost-of-living increase since the 1960s, Hindery argued.
And these CEOs are not exactly earning their exorbitant pay, said Hindery.
"It's a fraud," the former executive said. "It's born out of cronyism."
That cronyism is demonstrated in a new Huffington Post analysis of executive-pay data showing the compliance of corporate boards in approving CEO pay, regardless of corporate performance. Those directors are themselves well-paid for their vigorous rubber-stamping.
The problem, Hindery said, isn't just that the rich are getting richer. The tragedy, he said, is the rise of the low-wage workforce. Half of the jobs created in the past three years have been low-paying while the wealthiest Americans continue to capture record earnings.
The federal minimum wage, which stands at $7.25, is worth much less today than was in 1968. And all recent efforts to raise it have been stalled by Congress.
It's no wonder most of us are feeling entirely fed up. Two-third of Americans think CEO pay is out of hand, according to a recent HuffPost/YouGov poll, which also found that a majority of respondents thing the government should be doing more to help the poor.
Hindery would agree. After all, rising income inequality is putting a damper on the economy as a whole.
"The only time the U.S. economy and any of the developed economies prosper is when there's a vibrant middle class that grows from the bottom up," he said. "We've trashed that whole principle."


Posted by DontBanThisDrone (anonymous) on February 14, 2014 at 3:34 p.m.

Good for them, this is where the money SHOULD go. They're the ones doing "the work".

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Posted by billdog1 (anonymous) on February 14, 2014 at 4:35 p.m.

Got to love it dontbeafool. Trickle down had its chance. 30 years of economic decay and the right is still trying to push it as something that works. I say look around, no where in our nation is the working class doing as good as 30 years ago.


Posted by dontbeafool (anonymous) on February 14, 2014 at 4:46 p.m.

we barely have a working class, at least in manufacturing. CEO's of companies that are losing money are getting 70% wage increases! Imagine if you or I went to the boss and asked for ANY raise when the company lost money. The insane has become the norm. Until FAIR trade agreements are made, and campaign contribution reform is made so big business can't donate millions to a candidate, it will always be BIG BUSINESS controlling the U.S. The people will have no say in anything unless there is an outright revolt.


Posted by papa1 (anonymous) on February 14, 2014 at 8:52 p.m.

if you think it's unfair now, wait until they pass the "trans pacific partnership trade agreement." it will be nafta on steroids. it's being negotiated behind closed doors and will export more American jobs to countries like china and Vietnam. the middle class is dying the death of one thousand cuts while everyone is watching American idol. one day china will march right in and then all bets are off. and everyone will be high on pot.


Posted by 76Ytown (anonymous) on February 14, 2014 at 10:33 p.m.

Papa1: so true. And once the companies employing the taxpayers leave the country, who will pay for all the subsidies?


Posted by bmanresident (anonymous) on February 14, 2014 at 11:41 p.m.

GM built cars and trucks are the biggest piles of crap that the UAW can put out and now they somehow get bonuses? How about they pay back the government bailout monies instead of dishing out money to an already bloated union?
At least all of the area drug dealers will be getting some extra cash in their pockets.


Posted by DontBanThisDrone (anonymous) on February 14, 2014 at 11:48 p.m.

eivo wrote: "That is why the cost of the cars are so high that nobody wants to buy them."

If the price of the GM cars is too high for you to afford, then you have my condolences...I hope things pick up for you.

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