According to The Detroit News, the men and women building Ford, General Motors, and Chrysler vehicles could end up receiving $800 million in bonuses spread out among the 130,000 workers thanks to various profit sharing plans. Over the last few years, the auto companies have been doing well financially, and the impact of their profits alone in Michigan could eclipse $400 million.
The impact in Michigan alone would eclipse the economic effects of sporting events such as the 2006 Super Bowl ($274 million), 2014 NHL Winter Classic ($30 million), or 2005 MLB All-Star Game ($52.5 million) had on the state. It also marks the third year in a row the automakers have issued bonus checks to UAW workers, with the most recent contract between the UAW and the auto entities stating that employees at GM and Ford receive one dollar for every $1 million in pre-tax profits made in North America (not just in the U.S.). Chrysler has a similar arrangement, except the Auburn-Hills-based firm quantifies its profit sharing program by using 85 percent of its global profits, rather than regional.
The workers of the company, along with management and executives, should be quite content about this development, as it only bodes well for them, and for the region as a whole.
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