Last October – following a six-week-long targeted strike – the United Auto Workers (UAW) reached a tentative agreement with Ford on a new master contract, which was ratified by workers a few weeks later. Set to expire in May 2028, this new deal includes the typical pay raises, enhanced retirement benefits, and investments from the automaker that we usually see, coupled with profit sharing checks, to boot. In recent years, these specific types of payouts have ranged between $6,600 in 2020 to $7,000 in 2022, but it seems that this year’s profit sharing checks will be a little fatter than that, according to the Detroit Free Press.
Around 58,000 U.S.-based Ford workers represented by the UAW will receive checks averaging $10,416, according to Ford’s Chief Financial Officer, John Lawler. That’s slightly higher than last year’s average of $9,176, and this year, temporary workers will be eligible to receive a profit sharing check for the first time. UAW Ford workers are currently expected to receive their profit sharing checks in mid-March, according to Ford spokesman T.R. Reid.
The exact amount that each employee will receive varies based on the number of hours they worked, with these figures not including applicable taxes. The automaker calculates its profit sharing payouts based on the premise of $1 for every $1 million generated in corporate pre-tax profit in any particular year, along with compensated hours per worker.
Other variables in these payments include a worker’s specific eligible compensated hours, but this figure includes overtime worked, meaning that those who put in some extra hours over the past year can expect to receive bigger checks. It’s worth noting that these profit sharing checks were negotiated by the UAW and are not considered bonuses, however.